Japan to confirm date for JAL restructuring announcement

18:59, January 15, 2010      

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File photo shows an employee of Japan Airlines (JAL) walks past a logo of the company at Haneda airport in Tokyo January 13, 2010. (Xinhua/Reuters File Photo)

Japan's Transport Minister Seiji Maehara is to meet on Friday with Prime Minister Yukio Hatoyama to confirm the date that the plan for the restructuring of Japan Airlines (JAL) will be announced.

JAL is to be restructured under the Enterprise Turnaround Initiative Corp. (ETIC), which was set up by the government of the Democratic Party of Japan (DPJ) to help struggling companies, is set to announce the details of the restructuring plan as early as Tuesday, according to local media.

JAL has struggled to stay afloat amid the economic downturn, and in November announced losses for the first half of the fiscal year of 131.2 billion yen (1.5 billion dollars), and refused to predict results for the year.

On Friday, Maehara said that JAL was to receive an additional 145 billion yen (1.6 billion dollars) of assistance from the Development Bank of Japan in order to help it stay afloat.

"We are going to take measures to make sure there are no interruptions to operations, so please continue to use JAL," Maehara said, adding that the 200 billion yen so far given to the airline was enough to make sure that it stayed afloat and its flights stayed in the air.

JAL is expected to announce bankruptcy next week and is weighed down by around 16 billion dollars in debt. Shares in the company plummeted in value this week, and are now trading at around 8 yen.

Source: Xinhua
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