Japan Airlines Corp. and its bankruptcy administrator, the state-backed Enterprise Turnaround Initiative Corp. of Japan, submitted a rehabilitation plan to the Tokyo District Court on Tuesday. This marks the start of JAL's full-scale efforts to reconstruct itself.
But the environment surrounding the airline is severe, including the dim world economic outlook. Both management and labor of the airline must do their best to build a company that can turn a profit consistently while giving priority to flight safety.
The rehabilitation plan features a ¥521.5 billion debt waiver from major creditor banks and a ¥350 billion investment by ETIC using public funds. The JAL group will also cut some 16,000 jobs, or some 30 percent of its workforce, by the end of fiscal 2010. But only about half of that target has been achieved.