Financially troubled carrier Japan Airlines (JAL) is to slash a third of its workforce and sell non-core assets as part of its financial turnaround plan.
JAL's workforce is to decline by a third over the next three years, bringing the workforce to 36,000 in March 2013, say reports in Japan citing unnamed sources.
The carrier will also sell its hotel chain to raise cash, say the reports.
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Japan's government is grappling with whether to have JAL enter bankruptcy as part of its financial restructuring or whether to have an out-of-court solution.
Latest reports from Japan, citing unnamed sources, says the state-backed Enterprise Turnaround Initiative Corporation is in favour of bankruptcy protection for JAL and is looking to loan JAL ¥300 billion ($3.3 billion).
The reports also say the Development Bank of Japan, which has already agreed to give JAL a ¥200 billion bridging loan, is looking to provide a further ¥200 billion.
Source: Air Transport Intelligence news