The government may need to inject public funds into Japan Airlines Corp. to keep the ailing carrier aloft, transport minister Seiji Maehara and Finance Minister Hirohisa Fujii indicated Tuesday.
The announcement comes as JAL faces a much bigger than expected group operating loss of around ¥200 billion in fiscal 2009, compared with an earlier forecast of ¥59 billion, with management considering selling its hotel business in an urgent move to improve earnings.
The two key members of Prime Minister Yukio Hatoyama's administration met with members of the JAL reconstruction task force Tuesday morning for a briefing on JAL's rehabilitation plans. The task force, formed by the transport ministry, has already informed JAL's creditors of the higher forecast loss, sources said Monday.