Troubled JAL to cut 15,600 jobs, declines cash offers

Reports say troubled Japan Airlines Corp. is set to cut about 15,600 jobs, a third of its work force, and reject billion-dollar cash offers from Delta and American Airlines, as it files for bankruptcy and embarks on a government-led turnaround.

Kyodo News reported on Monday that under a rehabilitation plan now being hammered out by a state-backed corporate turnaround body, JAL would make the job cuts during the three fiscal years through March 2013. The plan would include a fresh investment of 300 billion yen (US$3.3 billion) by the body and wipe much of its soaring debts under bankruptcy protection.

The Asahi newspaper reported JAL’s shares, which have plunged in recent weeks, are to be delisted.

 

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