Pressure grows on JAL to cut costs

Thursday, 29 May, 2007 0

TOKYO – Japan Airlines Corp has asked its four major creditors to provide hundreds of billions of yen to bolster its capital base, sources have told Ashai Shimbun.

The banks may require the struggling airline to carry out further restructuring, including a payroll overhaul, analysts said.

The four banks are considering swapping part of their outstanding loans to JAL with equity stakes in the company and other options, the sources said.

JAL is saddled with about 1.7 trillion yen in interest-bearing debts.

JAL is seeking agreement from the four banks before its shareholders meeting in late June, the sources said.



 

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Ian Jarrett



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