AIRLINE RETRENCHMENT
Japan - Japan Airlines (JAL) are reducing 30% of its global workforce as part of its restructuring plans in order to stay afloat.
Out of the 48,700 JAL employees, 16,000 would be losing their jobs, reported Japan Today. The adjustments in the organisation involved selling off subsidiaries and giving up on both domestic and international routes that were unprofitable. A government group, the Enterprise Turnaround Initiative Corp of Japan (ETIC) coordinated the sell-out plan following JAL's filing for bankruptcy protection with over US$25 billion (S$33.7 billion) in debt.
The company would receive a 521.5 billion yen (S$703.3 billion) debt waiver given by financial institutions and 350 billion yen (S$472 billion) in investment funds injected by ETIC, JAL announced Tuesday.
Chairman Kazuo Inamori said at the Tokyo Chamber of Commerce and Industry Building, "This revitalisation plan is the start of the rebirth of JAL," he said.
He added that the company would do its best in its endeavour of overcoming the crisis.
According to Japanese government and JAL officials, they were positive that the carrier would be able to bounce back to profit gaining level through the restructuring plans. However, they did not disclose information on making JAL a budget carrier.
Following the sell-out, JAL would be ceasing the operation of 103 aircrafts and eliminating 10 international and 39 domestic routes.
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