Japan Airlines Corp and trading house Mitsui & Co today said they have struck an agreement to jointly offer a comprehensive cargo service.
Under their partnership, JAL will offer its air cargo transport service while Mitsui will provide its know-how on sea freight and land transport operations.
"Mitsui and JAL both recognize the need to expand service territories and to raise the level of convenience and service standards by providing a comprehensive and seamless transport process that will meet the needs of the customers," the two firms said in a joint statement.
By capitalizing on Mitsui's strength in marketing, JAL intends to shore up its cargo service as demand for air cargo is slumping due to the global economic downturn, officials of the two firms said.
In July, the two firms will set up a joint brand called "Value-up Innovation Partners" and offer wide-range choices of transporting cargo via air, sea, or land, enabling, for example, cargo from Japan to be sent to overseas factories.
Together, the new venture is expected to boost their revenues by about 10 billion yen a year.
JAL and Mitsui have been looking for ways to form a business alliance, mainly centering on cargo service, after Mitsui accepted preferred shares worth 20 billion yen in JAL's third-party allotment of new shares totaling 150 billion yen in March last year.