Japanese carriers in merger

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Monday, Nov. 12, 2001 | 10:04 a.m.

TOKYO -- Two of Japan's three biggest airlines, Japan Airlines Co. and Japan Air System Co., are planning to merge in a deal that would give them nearly half of the domestic market and allow them to compete better for international customers.

Merging are Japan Airlines, the biggest Japanese airline, and No. 3 JAS.

"We will become a globally competitive carrier and be able to offer better services," JAL President Isao Kaneko told reporters on Monday.

The proposed combination would be the first major Japanese airline overhaul in 30 years -- highlighting how the Sept. 11 terrorist attacks have forced even insular Japanese carriers to rethink their business.