JAL to withdraw from cargo-only flight services at end of October

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TOKYO, March 25 Kyodo -
Japan Airlines Corp. said Thursday it will end cargo-only flights at the end of
October as part of efforts to turn around its loss-making operations after it
filed for bankruptcy protection in January.
Despite withdrawal from the cargo flights, which are used for about 25 percent
of JAL's international freight transport, JAL will continue its remaining cargo
operations by using the cargo space on its international and domestic passenger
flights.
Japan's biggest airline will aim to make its struggling cargo division
profitable by fiscal 2011 through March 2012 through scaling it down.
The decision follows the recent collapse of talks between JAL and Nippon Yusen
K.K., Japan's biggest shipping company, to integrate their air cargo
operations.
The merger plan fell apart after the state-backed Enterprise Turnaround
Initiative Corp. of Japan, which is sponsoring JAL's rehabilitation efforts,
urged the carrier to drastically review its cargo business, which is
susceptible to fluctuations in economic conditions.
While JAL is planning to slash around 15,700 jobs, or about 30 percent of its
group workforce, by fiscal 2012, the company may need to expand that figure as
it downsizes its cargo operations.
JAL's cargo operations fell into the red from fiscal 2005 and incurred an
operating loss of about 24 billion yen in fiscal 2008. The cargo operations are
expected to remain unprofitable for the upcoming financial year starting in
April.
==Kyodo