The Japan Airlines Company, the first in Japan, needs about 250,000 million yen (1,890 million euros) to fund its restructuring plan and to address poor performance arising from the crisis , said Wednesday’s Nikkei business daily.
According to the newspaper, the airline sought bank loans amounting to 100,000 million yen ($ 755 million) and will try to raise a similar amount by selling shares and issuing new securities in the current fiscal year, which ends in March 2010.
In addition, Japan Airlines is considering a possible alliance with U.S. company Delta Airlines, the largest airline in the world, has shown interest in investing up to 50,000 billion yen (377 million) in the Japanese airline.
It received late last June, a credit line worth 100,000 million yen from a consortium consisting of, among others, the Japan Development Bank and the government backed the company in exchange for accepting temporarily put under supervision of the Ministry of Transport.
The airline, which lost between April and June 99,000 billion yen (723 million euros), is immersed in a cost-cutting plan to dispense with 1,200 workers and reduce its operations and air routes and use smaller planes to accommodate to lower demand.
For the current fiscal year, Japan Airlines expects to record a net loss of 63.000 billion yen (460 million) and an operating loss of 59,000 billion yen (431 million)