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Japan Airlines requests bail-out | Japan Airlines requests bail-out |
(about 8 hours later) | |
Loss-making carrier Japan Airlines (JAL) has asked for a government bail-out to help it survive. | Loss-making carrier Japan Airlines (JAL) has asked for a government bail-out to help it survive. |
JAL president Haruka Nishimatsu made the request after meeting Japan's new transport minister. He also proposed a more drastic restructuring. | |
The airline recently announced plans to cut 6,800 jobs. | The airline recently announced plans to cut 6,800 jobs. |
JAL's shares had already tumbled 18% to a record low on rumours that it was seeking public money, or that it might seek to break up the company. | JAL's shares had already tumbled 18% to a record low on rumours that it was seeking public money, or that it might seek to break up the company. |
Tie-up hopes | Tie-up hopes |
"Ultimately, we think that the use of more funds will reduce our debts to the public," Mr Nishimatsu said. | "Ultimately, we think that the use of more funds will reduce our debts to the public," Mr Nishimatsu said. |
He made the comments to reporters after meeting Transport Minister Seiji Maehara, who took over the role after the Democratic Party took charge of the government. | He made the comments to reporters after meeting Transport Minister Seiji Maehara, who took over the role after the Democratic Party took charge of the government. |
Mr Nishimatsu plans to apply for public funds under the industrial revitalisation law. | Mr Nishimatsu plans to apply for public funds under the industrial revitalisation law. |
The law means companies need to obtain approval from the government to restructure. They can then apply for loans from banks, which are backed by the Japanese government's wholly-owned Japan Finance Corp. | |
Media reports have said that several US and European airlines - including Air France-KLM, Delta Airlines and American Airlines - are in the running to take a stake in JAL and expand into Asia via code-sharing agreements. | |
Mr Nishimatsu said last week he hoped JAL would have a deal in place with an international carrier by the middle of October. | |
Sector suffers | Sector suffers |
The airline industry as a whole has suffered in the global downturn, hit by a combination of falling passenger numbers and high oil prices. | The airline industry as a whole has suffered in the global downturn, hit by a combination of falling passenger numbers and high oil prices. |
The International Air Transport Association (Iata) has increased its forecast for losses across the whole industry to $11bn for 2009, from the $9bn it predicted earlier this month. | The International Air Transport Association (Iata) has increased its forecast for losses across the whole industry to $11bn for 2009, from the $9bn it predicted earlier this month. |
Airlines have lost $6bn in the first half of the year alone, Iata said, with Asian airlines among the hardest hit. | |
In the Asia-Pacific region, Iata predicts airlines will report losses of $3.6bn for 2009. | In the Asia-Pacific region, Iata predicts airlines will report losses of $3.6bn for 2009. |
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