from Asahi Shimbun www.asahi.net, January 7
Japan Airlines to Receive Additional Y300 Billion In Return of 10,000 Persons Cut
The Enterprize Turnaround Initiative Corporation (ETIC), a public-private fund, came up with a new policy to deal with Japan Airlines that have requested ETIC for support: ETIC will agree to pay capitalization up to Y300 billion as well as hundreds of billion yen as bridge loan. ETIC, seeking for JAL's rehabilitation by legal liquidation of the airliner, is willing to put a big sum of money 'boldly enough' to avoid escalation of credit panic.ETIC, on the other hand, will ask JAL to reduce more of its employees than previous plans, possibly to a size of 10,000 in total.
ETIC, after coordination with financial institutions in advance, will formally announce its support to JAL simultaneously as JAL will file a petition and protection under Corporate Rehabilitation Law sometime in this month.
Currently JAL employs about 48,000. 'JAL Rescue Task Force,' appointed by Makoto Maehara, Minister of Land and Transport called for a reduction by 8,400 persons previously. A new plan adds more than 10,000 to be slashed.
The number of air routes to be terminated due to poor profitability would remain as many as 45 to 50, almost the same level JAL had studied internally with consideration of impact to relevant destinations.
Haruka Nishimiatsu will step down from presidency of JAL and ETIC intends to appoint a new CEO from outside the airliner. Most of current board members will be forced to quit and a new COO will be selected from present executives in age of 40s or 50s who are knowledgeable to JAL's operations.
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