TOKYO (Reuters) - Japan Airlines 9205.T plans to cut overseas flights and increase personnel cuts over the next three years in a bid to slash operating costs by 30 percent, Japanese media said on Tuesday.
JAL, Asia’s largest airline by revenue, will scrap some 20 of its international flights by March 2012, the Nikkei business daily said. That would mean a 20 percent drop in sales from overseas flights.
JAL is under pressure to raise money and slash costs after securing a 100 billion yen ($1.1 billion) government-backed credit line earlier this year.
It is in talks on rival investments by American Airlines and Delta Airlines (DAL.N), which are attracted by JAL’s overseas operations.
Kyodo news agency said JAL hopes to raise around 100 billion yen ($1.1 billion) from foreign carriers, and said that Korean Air (003490.KS) is also in talks with JAL.
The struggling airline plans to increase the number of planned staff cuts by about 1,000 to a total of around 6,000, Kyodo said. It put the number of international routes to be terminated at 24, including flights connecting with China.
Reporting by Mayumi Negishi