JAL Hotels 'full steam ahead' despite bankruptcy

JAL chiefs file for bankruptcy protection [Getty Images].

By Emma Chamberlain

JAL Hotels has professed confidence in the future of its properties in the UAE, despite its parent company JAL Airlines filing for bankruptcy protection.

Speaking to HotelierMiddleEast.com, JAL Hotels cluster public relations manager Bahia Kerrouche insisted that preparations for the JAL Tower Dubai property were still “full steam ahead”.

Story continues below

Kerrouche added that JAL Tower Dubai will “open in spring 2010 and we are currently in the second phase of our recruitment drive for the property”.

JAL Hotels currently operates the Hotel JAL Furjeirah Hotel & Spa, the JAL Tower Dubai, located on Sheikh Zayed road, is due to open this year and Hotel JAL Bahrain Hotel & Spa is planned for a 2011 launch.

In an official announcement, Japanese Airlines Corporation filed for bankruptcy citing debts of more than US $25 billion. The collapse came in response to excessive borrowing and risky investments exacerbated by reduced passenger numbers during the worldwide recession.

Planned downsizing and restructuring programmes will affect companies hundreds of thousands of employees and shareholders. JAL also stated the collapse may extend to its many subsidiaries worldwide, under which JAL Hotels Co is placed

Meanwhile, the future of JAL airlines is unclear. While the Japanese government has
pledged a cash injection of $10 billion to reduce their debts, negotiations have begun with various US air carriers including Delta Air Lines and American Airlines.