JAL to cut over 19,000 jobs by March 2015

Tags: JAL, Jobs
Japan Airlines Corp, which is undergoing a state-backed rehabilitation process, has decided to cut its group workforce by 19,133 from the level in March 2009 to 32,729 by the end of March 2015 through an expansion of its early retirement program, according to a final draft of JAL's rehabilitation plan.

The final draft said JAL will shed 8,339 jobs through fiscal 2014 ending March 2015, up from the around 7,000 jobs it had planned to cut through fiscal 2010.

As part of its streamlining efforts, JAL will also sell two subsidiaries managing land operations for Chubu and Kansai airports -- Chubu Sky Support Co and JAL Ground Service Kansai Co -- given the planned large cuts in its flights using the airports this fall, the draft said.

The company, which filed for bankruptcy protection in January, will also aim to exit from its current plight in which debts exceed assets by the end of fiscal 2011 and introduce a total of 65 fuel-efficient passenger aircraft by fiscal 2014, the document said.

JAL and its rehabilitation administrator, the Enterprise Turnaround Initiative Corp of Japan, have been working out the reconstruction plan for submission to the Tokyo District Court by the end of August.

According to the final draft, JAL plans to cut around 16,000 employees during the current fiscal year started April and trim more jobs later through early and regular retirements.

The early retirement programme calls for the largest reduction of 2,271 employees among those engaged in airport-related operations, followed by 1,877 flight attendants and 1,480 mechanics.

The programme also seeks a cut of 1,232 salespeople and 826 pilots, among others.

The figures include those who have already left group companies under the program.

Through the job cuts and reduction of other personnel expenses, JAL expects to cut its employment costs to 255.2 billion yen in fiscal 2012, about two-thirds of the level in fiscal 2009.

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