JAL shelves plans to sell stake to US carriers
06 Oct 2009
Tokyo: Struggling flag carrier Japan Airlines Corp (JAL) has temporarily shelved plans to seek investments from a foreign airline in order to focus on a restructuring plan which will enable it to seek a government bail-out, according to reports in the local media.
JAL has been in negotiation with US carriers Delta Air Lines and American Airlines.
Asia's largest airline, JAL has decided to focus on other restructuring measures such as cutting jobs and unprofitable routes, Kyodo News reported late Monday.
The carrier lost more than one billion dollars in the April-June quarter and announced plans to slash 6,800 jobs and cut down on its flight network in an effort to return to profit. But the country's new Democratic Party of Japan-led government, which took office last month, expressed reservations about the restructuring plan, with transport minister Seiji Maehara saying he was "not convinced."
JAL has forecast a net loss of 63 billion yen ($707 million) in the year to March 2010.
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