Japan Airlines plans to ask its creditors to forgive it 250 billion yen (€1.9 billion) in debt as part of a new turnaround plan, it was reported today.
The struggling airline, Asia's largest by revenue, is also considering expanding its planned job cuts to more than 9,000 from 6,800 and will seek to boost its capital by 150 billion yen, Kyodo news agency said, citing sources close to the matter.
JAL president Haruka Nishimatsu will step down, Kyodo said.
A JAL spokesman declined to comment.
JAL, weighed down by $15 billion of debt and headed for its second straight annual loss, is restructuring under supervision of the state, which earlier this year backed a 100 billion yen loan to prop up the airline's finances.
The transport ministry has set up a special task force to put together a new turnaround plan for the carrier after deeming the previous plan not aggressive enough.
JAL's largest creditor is the state-owned Development Bank of Japan with 230 billion yen in loans outstanding as of March 31. Other lenders include Mizuho Corporate Bank with 57 billion yen in loans, Bank of Tokyo-Mitsubishi UFJ with 53 billion yen and Sumitomo Mitsui Banking Corporation with 37 billion yen.
Shares of JAL were down 3.7 per cent at 132 yen as of 0525 GMT. The benchmark Nikkei average was up 0.7 per cent.
Reuters