JAL to retire 103 planes, scrap 49 routes

Japan Airlines, a debt-ridden carrier worth no more than a two-decade old jumbo when it was bailed out by the government in January, is to retire 103 jets and scrap 49 routes in a bid to return to profit, reported Reuters.

JAL also said it would look at creating a low-cost carrier business and the state-backed turnaround body leading the restructuring said relisting the airline by 2013 was an option.

In a turnaround pledge submitted to the Tokyo District Court, the flag carrier said the plan, which includes a halt to 10 international routes, would help it achieve an operating profit margin of 9.2 percent by March 2013.

The airline said it had US$11.3 billion of debt as of the end of March.

"JAL's flop has caused a lot of trouble to shareholders and financial institutions," said chairman and chief executive Kazuo Inamori.

"Today is a new start for us," added Inamori, the 77-year old founder of electronic maker Kyocera Corp, who was asked by the government to run JAL after it filed for bankruptcy.

The latest fleet changes include the elimination of all its Boeing 747-400 jumbos, its Airbus A300-600 jets, its McDonnell Douglas built MD81 and MD90 aircraft. When complete, JAL will operate four models rather than the seven it flies now.
(Source:www.cargonewsasia.com)