Japan Airlines 'to cut 15,600 jobs'

Rehabilitation plans calls on troubled carrier to file for bankruptcy and cut jobs.

    Japan Airlines has attributed its financial problems to declining numbers of business passengers [EPA]

    JAL has attributed its current financial woes to a sharp drop in business passengers on international flights, triggered by the global financial crisis.

    Capital injection

    The ETIC estimated the liabilities of JAL exceed its assets by more than $9.5bn (860bn yen), Kyodo quoted an unnamed sources as saying.

    It plans to reduce the troubled airline's liabilities by 730bn yen through the court-backed bankruptcy, the report said.

    It will also invest 300bn yen in JAL and after the bankruptcy proceedings, the turnaround body will guarantee more than 470bn yen for payments of fuel and
    other commercial transactions necessary to keep JAL flying.

    The rehabilitation plan was also said to call for sale of the airline's subsidiaries including JAL Hotels Co.

    The ETIC will decline cash offers from Delta and American Airlines as it fears giving
    foreign carriers a foreign stake in the company would complicate the restructuring, according to media reports.

    Instead, the airline will pursue only greater co-operation with either Delta or American, the business daily Nikkei said on Sunday.

    Delta and its SkyTeam partners have offered $1bn to JAL, while American has countered with a $1.4bn.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    The shocking story of Israel's disappeared babies

    The shocking story of Israel's disappeared babies

    New information has come to light about thousands of mostly Yemeni children believed to have been abducted in the 1950s.

    Stories from the sex trade

    Stories from the sex trade

    Dutch sex workers, pimps and johns share their stories.

    Inside the world of India's booming fertility industry

    Inside the world of India's booming fertility industry

    As the stigma associated with being childless persists, some elderly women in India risk it all to become mothers.