Future of Japan Airlines still cloudy

The future of Japan Airlines (JAL) and the structure it intends to take, is still murky as rumours and hearsay plague the carrier back home in Japan despite government promises that it won?t let the carrier go under.

Three banks have reportedly refused to underwrite the government?s plan to revive JAL, says a major daily newspaper.  A government taskforce has drafted a plan which sees banks providing loans of up to JPY300 billion.

Another report says that JAL is seeking an Asian low cost carrier to form a tie-up so it can concentrate on more profitable business services to North America and offload its less lucrative leisure routes.

9,000 jobs are also expected to be cut from the carrier globally.

Some analysts have predicted that the full financial year 2009/2010 ending March will see the Japanese carrier report a loss of JPY200 billion (US$2.2 billion).

Sourced = The e Travel Blackboard