Japan Airlines may stop international flights

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Japan Airlines (JAL) may stop flying international routes under a plan being discussed by the government to try to keep the debt-ridden company in the air, a report said Thursday. The plan calls for rival All Nippon Airways (ANA) to take over JAL’s international flights as part of what would be a drastic downsizing scheme for Asia’s biggest airline, the Mainichi Shimbun newspaper said.

The scheme was apparently on the table when key cabinet officials, including Transport Minister Seiji Maehara, met on Wednesday to discuss JAL’s rehabilitation program. The Transport Ministry has strongly opposed the plan to turn JAL into a domestic carrier despite growing calls for a drastic restructuring of its international operations where losses weigh heavily, the newspaper said.

“[JAL] will be a good company if it abandons international routes and concentrates on domestic flights,” an unidentified JAL executive was quoted by Mainichi as saying.

In a related move, Maehara held talks with vice Prime Minister Naoto Kan and other officials Thursday and agreed that the state-run Development Bank of Japan will offer further loans to JAL.

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