JAL may abandon international flights: report
02 Jan 2010
The Japanese government is discussing an option to stop troubled Japan Airlines from operating international flights and focus on domestic routes, newspapers reported on Saturday.
The plan calls for rival All Nippon Airways (ANA) to take over JAL's international flights as part of what would be a drastic downsizing scheme for Asia's biggest airline, the Mainichi Shimbun newspaper said.
The Yomiuri Shimbun newspaper said on Friday that ANA is looking to increase its overseas flights by targeting profitable routes to Europe and the US and has told Japan's government of its interest.
JAL has already said it will terminate flights on 30 routes, including 13 international, by June.
However, the transport ministry has strongly opposed the plan for a drastic restructuring of its international operations where losses weigh heavily, the newspaper said.
"(JAL) will be a good company if it abandons international routes and concentrates on domestic flights," a JAL executive was quoted by Mainichi as saying.
In a related move, transport minister Seiji Maehara held talks with vice prime minister Naoto Kan and other officials on Thursday, and agreed that the state-run Development Bank of Japan (DBJ) will offer further loans to JAL.
