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Japan Airlines Suspends Plan to Sell JALways Stake, Nikkei Says

By Fergus Maguire

Oct. 16 (Bloomberg) -- Japan Airlines Corp. will suspend a plan to sell stakes in a unit operating resort-bound flight operations after a recommendation from a government-appointed panel, Nikkei English News said, without citing anyone.

The company had considered selling stakes in JALways Co., which flies to destinations in Hawaii, Australia and Thailand, to JTB Corp. and other Japanese travel agencies, the report said.

The panel overseeing JAL’s restructuring recommended the airline focus on routes used heavily by business travelers, the report said. The resort-bound business should be operated through alliances with low-cost carriers in Asia, the report said.

JAL will also reconsider a plan to sell baggage handling unit JAL Ground Service Co., the report said. A sale of JAL’s holdings in airline caterer TFK remains under consideration, the Nikkei said.

Last Updated: October 15, 2009 19:02 EDT

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