Thousands of jobs set to go at Japan Airlines

| September 15, 2009 | 0 Comments

Japan Airlines (JAL) has announced plans to cut its operating schedule and reduce headcount by almost 7,000.

The loss-making airline said that a total of 6,800 jobs will go as it embarks on a cost-cutting exercise and is making plans for fuel-efficiency and a focus on business customers.

The news comes as there are rumours that several US and European airlines are in the running to take a stake in the airline.

There have been reports suggesting that discussions are taking place with Delta Airlines and American Airlines to invest in JAL to expand into Asia via code-sharing agreements.

Today, there has been speculation that Air France-KLM has joined the talks.

Meanwhile, JAL is expected to slash its flight schedule with reports claiming that the cuts will be primarily in China.

JAL, like many others, is struggling to stay afloat during the global economic downturn which has led to a slump in demand. Many airlines have been forced out of business as fewer people are travelling by air.

Shares in JAL lost 3.4% following the news, after surging 8% yesterday.

Earlier this month, the International Air Transport Association (IATA) said major airlines continue to suffer amid higher fuel prices.

According to the industry group, in the first six months of the year, airlines are likely to have lost £3.7 billion.

In related news today, BAE Systems has announced plans to cut more than 1,000 jobs in Cheshire, UK.

Tags: Air France-KLM, American Airlines, BAE Systems, , , , ,

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