Japan Airlines Corporation has approved the transfer of all 1,000 issued and outstanding shares of Pacific Fuel Trading Corporation, a wholly owned consolidated subsidiary of JAL, to Vitol. In accordance with its medium-term business plan announced in February 2007, the JAL Group has been pursuing a strategy of focusing its resources on its core airline business. The sale of PFTC’s shares is in line with this strategy. The JAL Group will continue to accelerate its efforts to realize its medium-term business plan.
Purchasing and distributing jet fuel in the USA are PFTC’s primary business activities. In connection with this business, JAL will enter into a long-term supply agreement with PFTC, which will allow JAL to benefit from the Vitol Group’s global logistic capabilities.
The Vitol Group is made up of separate affiliated companies engaged in a variety of oil trading and financial businesses and today is widely acknowledged by the oil industry as one of the largest and most influential oil trading companies in the world. Vitol moves 4.5 million barrels of oil daily, managed from its global offices including Geneva, London, Houston and Singapore. The long-term agreement with the Vitol Group should enable JAL to diversify and stabilize its fuel supply.