Japan airlines trouble

Japan said it agreed on Sunday to give a new lifeline to troubled Japan Airlines by doubling a state-funded loan for the carrier to 200 billion yen (2.2 billion dollars). The government decision comes after shares in Asia's largest carrier plunged to a record low last week after investors were spooked by reports that bankruptcy was a possible option for the beleaguered airline. "The government has decided to expand from 100 billion yen to 200 billion yen the line of credit from the Development Bank of Japan to Japan Airlines Corp," an official statement said. In November, the state-run Development Bank had set a credit line of 100 billion yen for Japan Airlines and has already paid out just over half of the total. The extra funding was agreed at a meeting of cabinet ministers including Transport Minister Seiji Maehara and Vice Prime Minister Naoto Kan. JAL, battered by the global recession and swine flu pandemic, is scrambling to slash costs and is seeking its fourth government bailout since 2001 to keep flying in the face of mounting losses.