Japan Airlines to cut 16 more international, domestic routes starting Dec 09

The cash-strapped Japan Airlines (JAL) has decided to eliminate 16 more international and domestic routes starting early December 2009, as a part of a drastic overhaul plan intended to curb the carrier’s mounting losses.

n a statement, Japan Airlines said that, staggered from now till September 2010, the airline plans to cut a total of 61 international flights and 91 domestic weekly return services from its network.

Japan Airlines, based in Shinagawa, Tokyo, Japan – the biggest airline in Asia – is seeking a public bailout, with the government of Japan attempting to raise funds worth several billions of dollars to rescue the airline.

JAL has been posting heavy losses amidst the slowdown in both business travel and leisure travel resulting from the global economic depression.

The cutting of routes will affects dozens of flights operated by Japan Airlines.

In addition to these cuts, Japan Airlines said it will trim down frequency on 2 routes – including service to London.

Starting December 7, 2009, Japan Airlines will stop half of its 14 weekly flights between Tokyo and London.

On the Tokyo-Taipei route, the number of services will be reduced from 28 flights a week to 21 flights a week.

The twice-a-week flights connecting Narita International Airport (outside Tokyo) with Vancouver (Canada) and Mexico City (Mexico) will also come to an end.

From December 7, 2009, the service between Tokyo and the Chinese cities of Xiamen Hangzhou and Qingdao will be eliminated, as also the route between Osaka in Japan and Hangzhou.

Later, from January 12, 2010, the flights from Osaka (Japan) to Busan (South Korea) and Hanoi (Vietnam) will be axed.

Japan Airlines will end the Osaka-Singapore and the Osaka-Kuala Lumpur routes on January 17, 2010.

In the case of domestic routes, JAL has decided to abolish flights between the Japanese cities of Tokyo and Kobe; and between and Nagoya and Kumamoto, along with 8 other domestic routes.

Japan Airlines have announced these flight cuts after having suffered financial troubles for nearly a year.

According to aviation-industry analysts, Japan Airlines right now requires a loan of as much as €1.34 billion in order to stay afloat, and will need this much loan by the end of November 2009.

It may be noted that the creditors of Japan Airlines had rejected, in October 2009, the Japanese government’s €4.5-billion rescue plan for the sick carrier. If the government’s plan were implemented, Japan Airlines would have received €2.25 billion in debt waivers.

At present, the main creditor of Japan Airlines is the government-owned Development Bank of Japan.