Latest News

Monday, 26th October 2009
In Business In Japan,

Japan Airlines 'set for state control'

The Japanese government is preparing to take control of Japan Airways to stop the carrier from going out of business, it has been claimed.

The loss-making airline may be put under the supervision of a state-backed body designed to turn the organisation around and make it into a viable business again, a report in the Nikkei business daily has stated.

Falling passenger numbers, together with high oil prices, have resulted in the carrier suffering serious financial difficulties and the BBC reports that the Nikkei believes the Enterprise Turnaround Initiative Corporation of Japan could take over the airline as early as this week.

Japan Airlines has already announced it is preparing to cut 6,800 jobs in an effort to cut costs, but this latest move could help secure future employment at the airline.

Reviving the economy was put at the heart of a recent speech by new Japanese prime minister Yukio Hatoyama.

During his first policy speech, the new premier explained the importance of improving the economy, which has suffered like the rest of the world during the global recession of the past year.

Written by Susan Ballion

Related news stories:
Japan Airlines gets bid from consortium (18th September 2009)
Japan Airlines announces US airline deal (13th January 2011)
Japan Airlines 'to take American offer' (9th February 2010)
New management take over Japan Airlines (3rd February 2010)
US carrier makes new offer to Japan Airlines (3rd December 2009)