‘State plan’ for Japan Airlines
Loss-making carrier Japan Airlines (JAL) is to be put under the supervision of a state-backed turnaround body, a report has said.
The Nikkei business daily said that the Enterprise Turnaround Initiative Corporation of Japan may take it over as early as this week.
JAL has been in severe financial trouble, hit by falling passenger numbers and high oil prices.
Last month, the airline asked the government for emergency funding.
The move came after refinancing plans failed to materialise.
News of the possible supervision of the airline by the Enterprise Turnaround Initiative Corporation, sent shares in the carrier up 2.6% to 117 yen.
Job cuts
Japan Airlines recently announced plans to cut 6,800 jobs to save money.
But the Kyodo news agency reported on Monday that JAL had decided to raise the number of jobs it would cut to 13,000 jobs.
JAL made a loss of 99bn yen ($1.08bn; £661m) between April and June.
The Enterprise Turnaround Initiative Corporation of Japan buys the debt of companies in trouble and sends in turnaround specialists to help them restructure their operations.
The body, established earlier this month, operates like an investment fund and initially has been authorised to release up to 1.6tn yen in state-guaranteed funding to companies.
