Japan Airlines reportedly considering reducing pax capacity by 10% in 2H2009

Japan Airlines is reportedly considering scaling back its passenger flight business by approximately 10% in 2H2009, as part of measures to reduce costs and return to profitability (The Yomiuri Shimbun, 06-Aug-09). The carrier also plans to reduce labour costs by 10%, as part of its business improvement plan, which is to be finalised by the end of Aug-2009 and is being implemented under Japanese Government supervision. The majority of route reductions will reportedly occur on international services, while the carrier is reportedly considering downsizing to smaller aircraft on some domestic routes. The carrier is expected to announce 1Q2009 earnings on 07-Aug-09.