Japan Airlines (JAL) is expected to file for bankruptcy today, and announce drastic cuts to its workforce as the ailing carrier seeks to restructure.
However, the airline will likely maintain its operations as it seeks protection from creditors.
Japan's transport Seiji Maehara announced last Friday that the government will decide on a restructuring plan for JAL today, say media reports in Japan.
The airline is also expected to cut its workforce by a third over the next three years, bringing the total staff strength to 36,000, the reports add.
A JAL spokeswoman declines to comment.
The carrier is expected to file for protection from its creditors, under the Japanese equivalent of Chapter 11 in the USA.
Japan's Enterprise Turnaround Initiative Corporation of Japan (ETIC) is working on a restructuring plan for JAL, and is likely to offer ¥300 billion ($3.3 billion) in government funds.
Banks are also expected to forgive several hundred billion yen in loans.
In the meantime, JAL has secured approval from its current and former employees to make cuts to pension schemes in a bid to cut costs.
The carrier posted a fiscal second quarter net loss of ¥32.1 billion and reportedly owes creditors $15 billion.
Source: Air Transport Intelligence news
