Japan Airlines' Cargo operations and Nippon Cargo Airlines will merge, aiming at overcoming their losses through cost cuts and economies of scale.
The Transport Ministry had already urged such a merger, along with a round of other drastic reforms. Japan Airlines is surviving on state money, a situation the ministry is exploiting to intrude into the management of the private company as though it were a government entity.
The combined air cargo business is expected to be separate from Japan Airlines and to be held jointly by the airline and by Nippon Yusen, the owner of Nippon Cargo. They aim to complete the merger by April 1.
