Business IdeasJapan Airlines to slash 6,800 jobs: report
Japan Airlines will slash 6,800 jobs and suspend a number of overseas routes in an attempt to cut cost.
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"Japan Airlines is to cut 6,800 jobs, slash its network of overseas routes and withdraw from some airports as it seeks to attract the debt and equity funding needed to repair its balance sheet," the Financial Times said.
Attributing to JAL"s president Haruka Nishimatsu, the report said that the company aims to agree on a capital injection from a foreign rival by mid-October.
According to the publication, JAL is in talks with US rivals Delta Air Lines and American Airlines about an equity injection of about 30 billion yen ($328 million).
Both carriers" proposals to JAL may also feature investment commitments by other international airlines, including Delta"s venture partner, Air France-KLM, and allies of American Airlines such as British Airways, the report said citing people familiar with the matter.
The company"s restructuring plan presented to an official plan yesterday, is its last-ditch attempt to persuade the government, its banks and potential investors that it can return to profit.
The plan includes heavy cuts to JAL"s international network, where demand is most volatile.