JAL president vows to compile aggressive new cost-cutting plan soon

Thursday 02nd July, 02:22 PM JST

TOKYO —

Japan Airlines Corp. President Haruka Nishimatsu promised the government Wednesday to soon present an aggressive cost-cutting plan to turn around its loss-making businesses after inking a deal to receive state-backed emergency loans. ‘‘We hope to announce a plan that will pursue efficiency with no exceptions,’’ Nishimatsu said in a meeting with Land, Infrastructure, Transport and Tourism Minister Kazuyoshi Kaneko.

Nishimatsu expressed gratitude to the government after JAL recently signed agreements to borrow 100 billion yen from five lenders; the state-backed Development Bank of Japan, the Japan Bank for International Cooperation and three Japanese megabanks. ‘‘This is an exceptional measure,’’ Kaneko said. ‘‘I hope you will take this matter seriously and implement fundamental reforms even if they are painful.’’ Before the deal on the emergency loans, Kaneko issued a rare comment on June 19, promising to support and oversee the reconstruction of Japan’s largest airline. The government plans to guarantee about 80 percent of the repayment of loans to be extended to JAL by the DBJ. Its effort to restructure flight routes at regional airports is also likely to face opposition from some politicians ahead of an upcoming general election, industry observers said.

Kyodo

› Login to comment

7 Comments

The758 at 02:47 PM JST - 2nd July

Is it just me or is JAL constantly in trouble?
saborichan at 03:34 PM JST - 2nd July

dooomed, doooooooooooooomed
stirfry at 04:08 PM JST - 2nd July

pretty sure it won't include salary cuts for the mooks in charge
proxy at 07:10 PM JST - 2nd July

Easy, stop flying out of Narita. Haul people from Haneda to a cheaper hub like Sapporo for international flights.
zurcronium at 11:33 PM JST - 2nd July

Best plan to save on expenses, just shut down. JAL seems to be beyond repair.
Altria at 09:17 AM JST - 3rd July

Save on sewage costs by urinating in the park.
sfjp330 at 06:32 AM JST - 7th July

JAL president vows new cost cutting plan by cancelling flights when the pilots are caught pissing at the park.