JAL reports on tie-up talks and restructuring

Struggling Japan Airlines says it plans to agree on capital tie-ups with foreign airlines by the middle of next month.

Japan Airlines President Haruka Nishimatsu on Tuesday reported to a Transport Ministry expert panel about his company's business improvement program to be drawn up this month.

He said JAL is holding talks with the world's largest carrier, Delta Air Lines, on a capital alliance worth about 500-million dollars. He also said American Airlines, the world's second-largest carrier, is studying the possibility of investing in JAL.

Nishimatsu said JAL plans to cut 6,800 jobs, or 14 percent of its group workforce, over the next 3 years and suspend 30 loss-making international routes.

The participants in the panel meeting asked about the feasibility of JAL's restructuring plans and requested more details.