ID :
124252
Wed, 05/26/2010 - 06:49
Auther :
Shortlink :
https://www.oananews.org//node/124252
The shortlink copeid
Japan Airlines to delay submitting rehabilitation plan+
TOKYO, May 25 Kyodo -
Japan Airlines Corp., undergoing a state-backed rehabilitation process, said
Tuesday it will delay submitting a detailed business turnaround plan to the
Tokyo District Court from late June as initially targeted to the end of August
to secure time for a more effective plan to restore profitability.
With the delay, JAL President Masaru Onishi said at a news conference, ''We
will carefully study (the details of the plan) and create a structure that will
make the company profitable, and by reflecting this in the plan, we hope it
will lead to the revival of the JAL group.''
Appearing at the same news conference, Hideo Seto, trustee of the Enterprise
Turnaround Initiative Corp. of Japan which is overseeing the former flag
carrier's rehabilitation, said that the two-month delay is aimed at enabling
JAL to thoroughly review its route network and is desirable for financial
institutions.
JAL Chairman Kazuo Inamori gave an assurance that JAL will not engage in
wasting taxpayers' money or ''sloppy management'' so it can repay the public
for having saved the airline.
The court accepted JAL's request for the delay submitted Tuesday.
Job cuts and route reductions form the key pillars of the turnaround plan. When
JAL filed for bankruptcy protection on Jan. 19, it said it would scrap a total
of 31 unprofitable international and domestic routes, and improve its cost
structure by cutting around 16,000 jobs.
In late April, JAL unveiled a new plan for 45 route cuts from late September
through next March as part of efforts to swiftly restore profitability.
Tuesday's announcement came amid creditor banks' insistence that JAL make
further personnel and flight cuts.
JAL will stick with its April 28 decision to reduce domestic routes despite
opposition from local airports in Japan, Onishi said, adding that it had been
explained to local authorities that such route cuts are needed for the
long-term growth of the company and its network.
As of April 17, a total of 3,610 employees had filed for the airline's early
retirement program.
JAL also said it will not release its fiscal 2009 earnings.
==Kyodo
Japan Airlines Corp., undergoing a state-backed rehabilitation process, said
Tuesday it will delay submitting a detailed business turnaround plan to the
Tokyo District Court from late June as initially targeted to the end of August
to secure time for a more effective plan to restore profitability.
With the delay, JAL President Masaru Onishi said at a news conference, ''We
will carefully study (the details of the plan) and create a structure that will
make the company profitable, and by reflecting this in the plan, we hope it
will lead to the revival of the JAL group.''
Appearing at the same news conference, Hideo Seto, trustee of the Enterprise
Turnaround Initiative Corp. of Japan which is overseeing the former flag
carrier's rehabilitation, said that the two-month delay is aimed at enabling
JAL to thoroughly review its route network and is desirable for financial
institutions.
JAL Chairman Kazuo Inamori gave an assurance that JAL will not engage in
wasting taxpayers' money or ''sloppy management'' so it can repay the public
for having saved the airline.
The court accepted JAL's request for the delay submitted Tuesday.
Job cuts and route reductions form the key pillars of the turnaround plan. When
JAL filed for bankruptcy protection on Jan. 19, it said it would scrap a total
of 31 unprofitable international and domestic routes, and improve its cost
structure by cutting around 16,000 jobs.
In late April, JAL unveiled a new plan for 45 route cuts from late September
through next March as part of efforts to swiftly restore profitability.
Tuesday's announcement came amid creditor banks' insistence that JAL make
further personnel and flight cuts.
JAL will stick with its April 28 decision to reduce domestic routes despite
opposition from local airports in Japan, Onishi said, adding that it had been
explained to local authorities that such route cuts are needed for the
long-term growth of the company and its network.
As of April 17, a total of 3,610 employees had filed for the airline's early
retirement program.
JAL also said it will not release its fiscal 2009 earnings.
==Kyodo
