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JAL lenders to demand cuts to int'l service: report

JAL lenders to demand cuts to int'l service: report

The main creditors of bankrupt Japan Airlines are to demand drastic cuts to the carrier's international service in exchange for further cash injections, a report said yesterday.
The company declared bankruptcy in January with US$26 billion of debt in one of Japan's biggest ever corporate failures, but has continued flying while it goes through painful state-led restructuring.
With JAL looking to a state-backed turnaround body for assistance, its four main lenders, including the Development Bank of Japan, have already waived massive amounts of debt.
The lenders have now decided not to shell out further financial aid without solid evidence that earnings are set to head north, the Nikkei business daily said.
The banks will demand JAL cuts both international and domestic services, while one proposal calls on the carrier to withdraw entirely from European and U.S. flights and to focus on the profitable Asian region, the paper said.


Updated : 2021-05-08 02:33 GMT+08:00