Investors back JAL business plan

Asia's biggest airline in terms of revenue Japan Airlines (JAL) shares closed at a six-month high on the back of investor expectations of fresh funding and job cuts to enable the Japanese carrier's recovery.

The airline has been hit by high fuel prices and high-profile safety alarms and is due to announce its new business plans on 6 February.

JAL has said that it would ask banks for ¥60 billion yen ($500 million) by March to help pay its debts.

Investor sentiments were also buoyed by a report in Japan's Minischi on the airline's mid-term business plan, which is believed to include a 6-per cent cut in jobs, amounting to an elimination of 3,000 jobs to be implemented over the next three years.

JAL has been struggling against stiff competition from its domestic rival All Nippon Airways and still has to deal with apathetic demand from domestic travellers and reduce its debt - in March 2006, the airline had announced a loss on the year's operations of more than ¥47 billion.

Despite having the highest revenues in Asia, JAL is only the sixth largest by market value.