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for its Asian operations, a report said Saturday. JAL, looking for
another public bailout to keep flying, is putting together an
emergency turnaround plan under the supervision of a government task
force. In its cost-cutting efforts, JAL will expand code-sharing
operations with budget carriers in Asia, replacing its less
profitable flights for tourist destinations, such as Hawaii, Thailand
and Indonesia, the Asahi daily reported. The move would enable JAL
to focus on more profitable business flights to North America,
Europe and China, the daily said without citing sources. Asia's
largest carrier, which lost more than one billion dollars in the
April-June quarter, announced last month plans for 6,800 job cuts, a
drastic reduction in routes and a tie-up with a foreign carrier.
But the new centre-left government said the measures were
insufficient and was refraining from granting another injection of
public funds. Under a new turnaround plan to be unveiled later
this month, JAL is seen to seek 9,000 job cuts and a debt waiver from
creditors of 250 billion yen ($2.8b) , as well as the departure of
president Haruka Nishimatsu. But Japan's Nikkei business daily
reported Saturday that the finance ministry and the Development Bank
of Japan, JAL's main creditor, contend the latest turnaround plan
will be too difficult to implement.
