Gov’t task force looking at JAL options

A government task force set up to help rescue Japan Airlines Corp said today it would review the carrier’s turnaround plans from scratch as investors dumped shares in Japan Airlines (JAL) on Thursday following reports that the loss-making carrier would request another government bailout and could break up its operations. Japan’s transport minister said he […]


government bailout Japan Airlines Corp task force


A government task force set up to help rescue Japan Airlines Corp said today it would review the carrier’s turnaround plans from scratch as investors dumped shares in Japan Airlines (JAL) on Thursday following reports that the loss-making carrier would request another government bailout and could break up its operations. Japan’s transport minister said he will not force the struggling carrier, Asia’s biggest, into bankruptcy. “We will not crush and liquidate (the airline), it’s just impossible,” Land, Infrastructure and Transport Minister Seiji Maehara said on a TV Asahi talk show, according to AP. ” The task force will make a recommendation to the transport minister by late October or early November, but in the meantime JAL plans to slash 6,800 jobs. The former state-owned carrier’s fate remains highly uncertain as it struggles with US$15 billion of debt and a likely second straight annual loss. The government task force said that splitting JAL into “good” and “bad” parts was an option.