JAL shelves tie-up talks with US carriers, says report
AFP
|
Fri, Oct 9 2009
JAL is already seeking government bailout to keep flying.
Keywords
TOKYO, JAPAN: Loss-making Japan Airlines Corp (JAL) has put on hold its plan to seek a capital tie-up with a foreign carrier to concentrate on other restructuring measures, a report said.
JAL, which is seeking a government bailout to keep flying, hopes to resume negotiations with US carriers Delta Air Lines and American Airlines after drawing up a turnaround plan, Kyodo News reported late on Monday. Asia’s largest airline decided to give priority to other restructuring measures such as cutting jobs and unprofitable routes, it quoted unnamed sources as saying.
JAL president Haruka Nishimatsu said last month he was aiming to tie up with another carrier by mid-October.
The Japanese airline, which lost more than US$1 billion in the April-June quarter, has announced plans to slash 6,800 jobs and make drastic reductions to its flight network as part of efforts to return to profit.
But the country’s new government last month criticised the turnaround plan as insufficient and launched a task force to review the restructuring process.
–AFP
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