JAL Lenders Seek More Cuts For More Aid

Titlu: JAL Lenders Seek More Cuts For More Aid
Sursa: http://news.airwise.com/story/view/1270159812.html
Autor: Reuters
Data: 01/04/2010

Citat :

Japan Airlines' main lenders on Thursday decided to demand drastic cuts to international service in exchange for further aid to the debt-ridden carrier, the Nikkei business daily reported.

JAL's four main lenders -- the Development Bank of Japan, Mizuho Corporate Bank, Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking -- decided not to provide further financial aid without solid evidence that earnings are set to grow, the paper said.

The main lenders want JAL to increase the list of services to be cancelled, including both domestic and international routes, the daily said.

They have yet to agree on a specific target, but one proposal gaining traction calls on JAL to basically withdraw from European and US flights and concentrate on the profitable Asian region, the Nikkei said.

The banks are also demanding deeper payroll cuts. Current plans call for JAL to reduce its group work force of 51,800 by 15,700 by unloading businesses, curbing hiring and offering early retirement, the Nikkei said.

With JAL turning to a government-backed turnaround body for assistance, the banks have already been forced to waive huge amounts of the company's debt, the daily said.

JAL and the turnaround body are hoping to receive court approval this summer for the airline's rehabilitation plans, the Nikkei said.