International BusinessJapan Airlines to cut 1,000 jobs, seek more loans: Sources
Japan Airlines Corp (JAL), restructuring under state supervision, is likely to tap financial institutions for around 170 billion yen in additional loans while considering cutting more than 1,000 jobs through an early retirement program after October, sources said.
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The nation"s largest air carrier will also consider selling shares in a subsidiary that runs some of JAL"s international flights, they said yesterday.
JAL is also considering eliminating more routes and reducing flights.
The airline will present an outline of its new management improvement plan to a panel to be convened next Tuesday by the Ministry of Land, Infrastructure, Transport and Tourism. While it plans to finalize the plan by the end of this month, strong opposition from within is also anticipated.
As part of its restructuring plan, the company is already set on cutting about 5,000 jobs, or around 10 per cent of its group workforce, over three years to March 2012. It hopes to effectively carry through and accelerate the streamlining measure by soliciting early retirement, the sources said.