Reuters: Financial Services and Real Estate: JAL to tap Qantas, other Oneworld partners for IPO -sources

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JAL to tap Qantas, other Oneworld partners for IPO -sources Mar 29th 2012, 03:57 TOKYO, March 29 | Wed Mar 28, 2012 11:57pm EDT TOKYO, March 29 (Reuters) - Japan Airlines is planning to tap Australia's Qantas, British Airways owner IAG and other members of the Oneworld alliance as possible investors in its initial public offering, three people with knowledge of the Japanese carrier's strategy said. Japan Airlines (JAL) is planning to raise at least 500 billion yen ($6.03 billion) ahead of a relisting of its shares in Tokyo as early as September, sources have told Reuters, allowing a state-backed fund to recoup the 350 billion yen it injected into the company after its bankruptcy in 2010. The former national flag carrier is eager to secure a group of stable shareholders. In Japan it is targeting banks, trading companies and other business partners as possible investors in the IPO. The move to add Oneworld members to its list of shareholders is aimed at bolstering overseas routes - a key plank of its rebuilding strategy - in addition to helping it reach a target of putting 10 to 20 percent of its stock in stable hands. Last week JAL Chairman Masaru Onishi met with Qantas Chief Executive Alan Joyce, IAG's Willie Walsh and other Oneworld leaders at a gathering in Berlin. Onishi explained JAL's recovery from bankruptcy and its business strategy, one of the people said. JAL has not yet officially filed for its IPO and regulations restrict Onishi and other JAL executives from soliciting investments or talking in detail about its IPO plans at this stage. But the context of such conversations is clear, the people said. "There is a mutual understanding without the issue being explicitly addressed," said one of the people, all of whom spoke on condition of anonymity due to the sensitivity of the matter. "This is a move to secure stable shareholders." JAL declined to comment. JAL joined Oneworld in 2007, one of the three major global alliances which pool frequent flyer miles and feed passengers between airlines. Other members include Cathay Pacific Airways , American Airlines and Finnair. Qantas and IAG are seen as two of the most likely to invest given their size and status as core members of Oneworld. But JAL will continue talking with all members with an eye towards them participating in the IPO, one of the people said. Any commitment would likely be limited to a few percent, and be viewed by both sides more as a way to bolster ties rather than as a financial investment. Japanese law limits foreign ownership in an airline to one third. "It is not clear yet whether an investment will be 1 percent, 2 percent or even 10 percent. It all depends on the partner," said one of the people. "We want to build stronger ties." Link this Share this Digg this Email Reprints

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