JATA Chair Resigns over Govt Subsidy Scandal

Economy Society

Tokyo, Dec. 7 (Jiji Press)--Jungo Kikuma has stepped down as chairman of the Japan Association of Travel Agents over a government subsidy scandal involving his company, it was learned Tuesday.

JATA said on the day that it has appointed acting chairman Hiroyuki Takahashi, chairman of major travel agency JTB Corp., to succeed Kikuma as its chairman.

Kikuma's resignation came after the revelation that Tokyo-based World Air-Sea Service Co., a travel agency of which Kikuma serves as chairman, received government employment adjustment subsidies inappropriately.

The association reached the conclusion that it would not be able to gain the understanding of member travel agencies and customers if Kikuma stays on as chairman.

Late last month, World Air-Sea Service released a third-party panel report that over 170 million yen of around 450 million yen the company received under the subsidy program may have been provided inappropriately.

[Copyright The Jiji Press, Ltd.]

Jiji Press