JAL outlines restructuring plan
By Shino Yuasa |
September 1, 2010, Wednesday
|
Print Edition
Print Edition
JAPAN Airlines outlined restructuring plans yesterday that include cutting 30 percent of its global work force and additional financing to keep flying after filing for bankruptcy protection in January.
Japan Airlines Corp submitted plans to the Tokyo District Court, the company said in a statement. The plans also include selling off subsidiaries and dropping unprofitable domestic and international routes.
The announcement culminates years of difficulty for Japan's flagship carrier, battered by safety lapses, ballooning pension payments and the need to streamline its flight routes amid intensifying global competition.
The plan is being orchestrated as a government-backed bailout, under a group called the Enterprise Turnaround Initiative Corp of Japan.
Some 16,000 jobs will be cut, although the reductions will be partly due to selling off subsidiaries, according to JAL.
The plan also features a 520 billion yen (US$6.2 billion) debt waiver mainly from financial institutions and a 350 billion yen investment in JAL by ETIC, the company said.
The government and JAL officials are hopeful that the plan will return the carrier to profitability.
Japan Airlines Corp submitted plans to the Tokyo District Court, the company said in a statement. The plans also include selling off subsidiaries and dropping unprofitable domestic and international routes.
The announcement culminates years of difficulty for Japan's flagship carrier, battered by safety lapses, ballooning pension payments and the need to streamline its flight routes amid intensifying global competition.
The plan is being orchestrated as a government-backed bailout, under a group called the Enterprise Turnaround Initiative Corp of Japan.
Some 16,000 jobs will be cut, although the reductions will be partly due to selling off subsidiaries, according to JAL.
The plan also features a 520 billion yen (US$6.2 billion) debt waiver mainly from financial institutions and a 350 billion yen investment in JAL by ETIC, the company said.
The government and JAL officials are hopeful that the plan will return the carrier to profitability.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
