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Friday, 6th November 2009
In Business In Japan,

Japan Airlines announces route cuts

Japanese carrier Japan Airlines has announced it is to cut a total of 16 routes between next month and June 2010.

The airline will stop eight domestic routes and eight overseas routes, after struggling with the impact of Japan's deepest recession since World War II.

Internal flights to be cancelled include routes to Matsumoto and Shizuoka and the airline will also totally pull out of all operations at Kobe Airport. One further cargo air route will be cut.

Outside of Japan, the airline will no longer fly to Mexico and will also cancel services to three destinations in China - Xiamen, Hangzhou and Tsingtao.

As part of the restructuring, around 200 jobs will be lost, the firm estimated.

Last month, Japan Airlines posted its largest-ever quarterly loss of 99 billion yen for the three months to June 2009.

For the year ending March 2010, the carrier has estimated it will make a loss of 63 billion yen.

Written by Kimberley Homer.

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