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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World JAL lenders to demand cuts to international service: report AFP - Saturday, April 3 Send IM Story Print JAL lenders to demand cuts to international service: report Slideshow: Full Photo Coverage: Business & Economy TOKYO (AFP) - – The main creditors of bankrupt Japan Airlines are to demand drastic cuts to the carrier's international service in exchange for further cash injections, a report said Friday. The company declared bankruptcy in January with 26 billion dollars of debt in one of Japan's biggest ever corporate failures, but has continued flying while it goes through painful state-led restructuring. With JAL looking to a state-backed turnaround body for assistance, its four main lenders, including the Development Bank of Japan, have already waived massive amounts of debt. The lenders have now decided not to shell out further financial aid without solid evidence that earnings are set to head north, the Nikkei business daily said. The banks will demand JAL cuts both international and domestic services, while one proposal calls on the carrier to withdraw entirely from European and US flights and to focus on the profitable Asian region, the paper said. The struggling airline currently runs more than 90 international flights, including code shares with other airlines, of which around a third are to Asian destinations. The carrier posted a two billion dollar loss for the nine months to December and is planning more than 15,000 job cuts. Recommend Send IM Story Print Related Articles US-BUSINESS Summary Reuters - 1 hour 18 minutes ago Carl Icahn unwinding Blockbuster stake Reuters - 1 hour 19 minutes ago U.S. actor John Forsythe dies, 92 Reuters - 1 hour 49 minutes ago Obama: U.S. starting to "turn the corner" on jobs Reuters - 2 hours 5 minutes ago Private sector hiring lifts March payrolls Reuters - Saturday, April 3 News Search Top Stories On Good Friday, criticism of pope likened to anti-Semitism French strike paralyses cross-Channel ferries US sees biggest job growth in three years Hamilton fastest in Malaysia GP, but cautious Did comet smashup unleash Earth's mini Ice Age? More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended Abortion doctor killer gets life; no parole for 50 yrs Did comet smashup unleash Earth's mini Ice Age? Granny fined $1,500 for selling goldfish to child Hamilton fastest in Malaysia GP, but cautious Sherpa to carry Hillary's ashes to Everest summit More Most Viewed » 'Rare' fossil of new dinosaur species found in US Hollywood stars help prevent suicide after Twitter alert Junkies and junk-food addicts share craving mechanism Toad is a telltale for impending quakes: scientists More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos World Cup 2010 Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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