ID :
76777
Tue, 08/25/2009 - 08:26
Auther :
Shortlink :
https://oananews.org//node/76777
The shortlink copeid
Japan Airlines mulls slashing 10% of workforce in 3 yrs to cut costs+
TOKYO, Aug. 25 Kyodo - Japan Airlines Corp. is considering cutting about 5,000 employees, or around 10 percent of its group workforce, in three years to March 2012 through attrition and other steps such as encouraging early retirement, industry sources said
Monday.
The move would help the airline, which has been restructuring under state
supervision, to reduce costs by more than 150 billion yen, the sources said.
JAL has included the plan in its management improvement program that the
company hopes to compile and make public by the end of September in response to
a request from the Land, Infrastructure, Transport and Tourism Ministry for it
to draw up a drastic restructuring program, they said.
The airline has begun consultations with lenders on its personnel reduction
plan with a view to securing additional funding from them by indicating it will
implement large-scale corporate downsizing, the sources said.
The plan, however, is expected to meet objections from groups such as labor
unions.
The JAL group had about 48,900 employees on a consolidated basis as of the end
of April.
In addition to attrition and early retirement, JAL plans to encourage the use
of its leave of absence system in which employees can temporarily take time
away from work without pay for purposes such as studying abroad, the sources
said.
The struggling airline is also considering selling minor group companies or
realigning them as a way to cut down on the number of total employees in its
group, they said.
In its management improvement program, JAL also intends to mention its plan to
scrap or reduce numerous international and domestic flights, on top of its
announcement earlier this month that it will suspend or cut 10 international
routes and reduce domestic flights on six routes.
It will also work on switching to smaller and more fuel-efficient planes, as
well as selling its surplus Boeing 747 jumbo jets as part of cost-cutting
efforts, according to the sources.
In a related move, JAL said last week it is negotiating with Nippon Cargo
Airlines Co., a Nippon Yusen K.K. arm, to merge its cargo operations with its
rival's next spring to turn its cargo business around.
The JAL group incurred a larger-than-expected 99.04 billion yen net loss for
the April-June quarter as cost-cutting efforts failed to compensate for travel
demand ravaged by the global economic downturn and the new influenza scare.
==Kyodo
2009-08-25 00:01:56
Monday.
The move would help the airline, which has been restructuring under state
supervision, to reduce costs by more than 150 billion yen, the sources said.
JAL has included the plan in its management improvement program that the
company hopes to compile and make public by the end of September in response to
a request from the Land, Infrastructure, Transport and Tourism Ministry for it
to draw up a drastic restructuring program, they said.
The airline has begun consultations with lenders on its personnel reduction
plan with a view to securing additional funding from them by indicating it will
implement large-scale corporate downsizing, the sources said.
The plan, however, is expected to meet objections from groups such as labor
unions.
The JAL group had about 48,900 employees on a consolidated basis as of the end
of April.
In addition to attrition and early retirement, JAL plans to encourage the use
of its leave of absence system in which employees can temporarily take time
away from work without pay for purposes such as studying abroad, the sources
said.
The struggling airline is also considering selling minor group companies or
realigning them as a way to cut down on the number of total employees in its
group, they said.
In its management improvement program, JAL also intends to mention its plan to
scrap or reduce numerous international and domestic flights, on top of its
announcement earlier this month that it will suspend or cut 10 international
routes and reduce domestic flights on six routes.
It will also work on switching to smaller and more fuel-efficient planes, as
well as selling its surplus Boeing 747 jumbo jets as part of cost-cutting
efforts, according to the sources.
In a related move, JAL said last week it is negotiating with Nippon Cargo
Airlines Co., a Nippon Yusen K.K. arm, to merge its cargo operations with its
rival's next spring to turn its cargo business around.
The JAL group incurred a larger-than-expected 99.04 billion yen net loss for
the April-June quarter as cost-cutting efforts failed to compensate for travel
demand ravaged by the global economic downturn and the new influenza scare.
==Kyodo
2009-08-25 00:01:56
