New Japan transport minister to review JAL rescue

TOKYO (Reuters) - Japan's new transport minister, Seiji Maehara, said he would review turnaround plans for Japan Airlines Corp (JAL) as bidders circle the loss-making carrier.

Speaking at his first news conference since being appointed on Wednesday as part of a new Japanese government, Maehara said he wanted to know if the state-supervised revitalization for the carrier was feasible and he would replace the members of an independent panel reviewing the turnaround plan.

"We want to drop for now the committee that comes from the LDP government," Maehara told a news conference, referring to the long-ruling party that lost heavily Japan's election last month.

"At the same time, I want to sincerely listen to what the Development Bank of Japan and financial institutions that have provided loans to JAL now have to say, and judge if JAL's rebuilding plans are feasible."

JAL has been hard hit by the global recession, which has cut passenger numbers and cargo traffic. The International Air Transport Association raised its forecast this week for 2009 industry losses by $2 billion to $11 billion.

Volatile oil prices and health fears over swine flu have also hurt carriers, but also prompted those that can afford it to strike deals to lay claim to future sources of traffic growth -- such as JAL's route network through Japan and into China.

Investing in JAL would bring access to Tokyo's Haneda airport, the world's third-busiest airport by passenger numbers.

JAL, which is undergoing a state-supervised overhaul, reportedly aims to raise 250 billion yen ($2.75 billion) through a mixture of equity and debt financing by March to fund a restructuring plan including cutting 6,800 jobs.

The airline has forecast a net loss of 63 billion yen ($693 million) for the year to the end of next March.

For a related graphic, click: r.reuters.com/hak66d

Delta Airlines and American Airlines are in rival talks to invest in Asia's largest airline by revenue and JAL wants to close a deal by mid-October.

The new government, led by the Democratic Party, could change the situation if it decides to take a harder stance than the previous Liberal Democratic Party administration, which had put its weight behind a state-assisted revamp of JAL.

Maehara has previously questioned the heavy hand played by government in the aviation industry and urged further deregulation.

($1=91.00 Yen)

(Reporting by Nobuhiro Kubo and Rodney Joyce)