Japan Airlines News

South Korea is getting serious about tackling its "zombie company" problem and will set up its first restructuring firm backed by the government and banks in November, spooked by some huge corporate losses and a darkening economic outlook. Korea Development Bank (KDB) will also seek to sell some of the 118 non-financial firms it controls, the government said last week - a move seen as part of its new resolve to deal with the issue. About 20 companies controlled by the state-run bank are seen as struggling.

When the U.S. navy sent a littoral combat ship on its first patrol of the disputed Spratly islands in the South China Sea during the past week, it was watching the skies as well. The USS Fort Worth, one of the most modern ships in the U.S. navy, dispatched a reconnaissance drone and a Seahawk helicopter to patrol the airspace, according to a little-noticed statement on the navy's website. While the navy didn't mention China's rapid land reclamation in the Spratlys, the ship's actions were a demonstration of U.S. capabilities in the event Beijing declares an Air Defence Identification Zone (ADIZ) in the area - a move experts and some U.S. military officials see as increasingly likely.

Oil fell to four-year low of $72 on Thursday; Airlines hope the price will slip below $70 a barrel. Airlines in Asia-Pacific are holding off from hedging their fuel costs as they wait for oil to dip below $70 a barrel in hopes of securing lower prices, industry executives said on Friday. The benchmark Brent crude oil price fell more than $6 to under $72 a barrel on Thursday, its lowest since July 2010, after the Organization of Petroleum Exporting Countries opted against cutting production even though a supply glut is pulling down prices. Airlines "hedge" some of their fuel needs - or buy fuel in advance at future, pre-determined prices - to reduce the impact on earnings of any volatility or increases in prices.