JAL president Shinmachi to quit


TOKYO (XFNews) - The chief executive of Japan Airlines Co Ltd (JAL) will resign amid a rebellion led by executives over mounting losses at Asia's biggest carrier, Kyodo News reported, citing unspecified sources at the airline.

JAL's board will make a decision tomorrow on the resignation of president and CEO Toshiyuki Shinmachi, Kyodo News said.

He will be replaced in June by Haruka Nishimatsu, a senior vice president in charge of financial matters, it said.

Four board members had demanded Shinmachi's resignation in mid-February to take responsibility for losses, with reports saying that the rebellion has since spread to senior managers.

JAL's net loss tripled to 11 bln yen in the three months to December, in part due to a series of safety scares which have frightened passengers at a time of soaring fuel costs.

JAL's main competitor, All Nippon Airways (ANA), in contrast reported a net profit in the nine months to December.

Amid the infighting, JAL put off a revival plan that had been due to be announced last week.

JAL said on February 6 it was suspending four international routes, on top of the six already axed last year, to cut costs.

Shinmachi became JAL president in 2004 and CEO in April 2005, amid mounting troubles at the carrier.

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