JAL shelves tie-up talks with US carriers: report
Loss-making Japan Airlines Corp 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.india Updated: Oct 06, 2009 10:43 IST
Loss-making Japan Airlines Corp 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. Delta is part of the SkyTeam airline alliance, while JAL and American Airlines belong to the rival Oneworld grouping.
The Japanese airline, which lost more than one billion dollars 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 country's new government last month criticised the turnaround plan as insufficient and launched a task force to review the restructuring process.
JAL, the recipient of three government bailouts since 2001, has forecast a net loss of 63 billion yen (707 million dollars) in the year to March 2010, after a 63.2-billion-yen deficit last year.