By Dow Jones
Japan Airlines Corp. (JALSY) plans to sharply cut its flight
operations over the next one to two years, according to reports
Tuesday.
Japan's Kyodo news reported that the airline, Asia's largest by
revenue, would cut its flight-related sales by 20% and operating
expenses by 30% from fiscal 2008 levels over the three years
through March 2012.
The Nikkei business daily, meanwhile, said JAL had decided to
scrap a further 20 or so international flights, roughly 20% of such
routes, starting next month, with the cuts expected to be completed
by the fiscal year ending in March, 2011.
The Nikkei said the cuts will focus on flights to China,
discontinuing around 10 routes this fiscal year.
Both reports did not name the sources for the news.
The Kyodo report said the move will increase the number of
personnel JAL plans to cut by about 1,000, to a total of around
6,000.
The cash-strapped Japanese flag carrier is currently reportedly
in talks with Delta Air Lines (DAL) and American Airlines parent
AMR Corp. (AMR), as well as Air France-KLM Group (AFLYY), in an
effort to raise capital through an investment tie-up.
News of a possible deal with AMR sent JAL's shares jumping in
Monday trading.
Nikkei reported separately Tuesday that, as part of its
negotiations for a capital tie-up, Delta has proposed that JAL
leave the Oneworld airline alliance and join Delta in the SkyTeam
alliance.
Such a change would cost JAL a few dozen billion yen, the report
said.
-MarketWatch; 415-439-6400; AskNewswires@dowjones.com