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Japan Airlines secures crisis loans: reports

Japan Airlines has secured emergency loans of about one billion dollars from a group of banks, including two state-backed lenders, to help it through the economic crisis, reports said today.

business Updated: Jun 30, 2009 16:58 IST

Japan Airlines has secured emergency loans of about one billion dollars from a group of banks, including two state-backed lenders, to help it through the economic crisis, reports said on Tuesday.

JAL, Asia’s largest carrier, will receive loans of 100 billion yen (1.05 billion dollars), of which about 60 billion yen will be provided by the Development Bank of Japan, Jiji Press reported.

The remainder will be lent by the Japan Bank for International Cooperation, Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corp. and Mizuho Corporate Bank, Jiji said. The airline declined to confirm or deny the report.

Finance Minister Kaoru Yosano said last week that JAL would receive a loan from the Development Bank but he did not say how much.

The global economic downturn has dealt a heavy blow to JAL’s efforts to recover from a long period of financial turbulence stretching back to its privatisation more than two decades ago.

JAL has forecast a net loss of 63 billion yen for the financial year that started in April, which would be its second straight year in the red.

It is not the only company turning to the government to help it ride out Japan’s worst recession since World War II.

Japanese chipmaker Elpida will receive a 30 billion yen investment from the Development Bank of Japan, along with a 10 billion yen loan, as part of a wider rescue package worth 160 billion yen, officials said on Tuesday.