Wednesday, April 28, 2010

Cuts continue at Japan Airlines

Cuts continue at Japan Airlines

Troubled carrier Japan Airlines (JAL) has confirmed it will cut a further 15 international routes from its schedule as it seeks to cut costs.

The flag-carrier confirmed vast financial losses earlier this year, with the airline presently being administered by the Japanese government.

Swathes of job cuts – expected to total at least 16,450 staff by March 2011 – have been implemented, while international and domestic passenger capacity is set to fall by 40 and 30 per cent respectively from 2008 levels.

“JAL has restructured its overall network with the clear objective of returning to profitability as swiftly as possible,” the airline said in a statement.

Combined with previously announced route cuts, the airline will stop operating 28 international routes over the coming months, while 50 domestic routes will be shed.

International routes to be closed include flights from Tokyo to Amsterdam, Milan, Rome and Sao Paulo.

The airline is undergoing a major restructuring after filing for bankruptcy protection on January 19th. At the time the airline was declared “hours from bankruptcy” before government support offered a lifeline.

Questions have also been raised over possibly malpractice at the airline before it entered administration.

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