JAL to outline rehabiliation plan this week, but plan submission to be delayed: reports
Japan Airlines is reportedly planning to detail an outline of its rehabilitation plan, including route and job reductions today (28-Apr-2010) (Kyodo News, 28-Apr-2010). However, the carrier will reportedly delay the submission of its turnaround plan to the Tokyo District Court by approximately two months from its initial target in late Jun-2010. The airline is facing significant opposition from local governments regarding the carrier’s proposed domestic route cuts, while its creditor banks are pressuring the company for further restructuring efforts. The key pillars of the rehabilitation plan will reportedly include an elimination of approximately 50 international and domestic routes, a reduction of approximately 16,000 employees by Mar-2011 and the replacement of ageing aircraft. The carrier is aiming to return to an operating profit in FY2010.