JAL to unveil outline of restructuring plan

TOKYO: Ailing Japan Airlines Corp. (JAL) is expected to unveil Tuesday an outline of its restructuring plan as it reportedly eyes thousands more job cuts and a tie-up up with a foreign carrier.

JAL, which is undergoing a government-supervised reorganisation, is to deliver a draft of the plan later in the day to advisers appointed by the transport ministry ahead of its request for additional public funds.

During the meeting, JAL is expected to brief the advisers about the progress of negotiations with overseas rivals, chiefly US carrier Delta Air Lines, over a possible capital tie-up, local media reported.

A JAL spokesman declined to comment on the plan, saying the company would officially announce it "as soon as possible."

According to a draft of the plan reported by local media, JAL will cut 6,000 jobs over the next three years.

It will scrap some 20 international flights by March 2012 and issue shares worth 100 billion yen (1.1 billion dollars), possibly to Delta, local media reported.

Delta has reportedly shown an interest in investing up to 50 billion yen in JAL, which would give the world's largest airline a stake of up to 11 percent, the Nikkei business daily has reported.

AMR Corp., the parent of American Airlines, had also reportedly shown interest in buying shares in JAL or setting up a joint venture.

JAL is likely to go ahead with talks with AMR if it fails to reach an accord with Delta, Jiji Press said. Both American Airlines and JAL belong to the Oneworld global airline alliance.

JAL lost more than one billion dollars in the April-June quarter and has announced more than 11,000 job cuts since 2005.

Outgoing Finance Minister Kaoru Yosano said: "I personally hope that the company... will survive."