According to 47 News, Japan Airlines (JAL) now plans to cut 19,133 jobs through end of March 2015, up from the previous plan of roughly 16,000 job cuts. Some of the extra cuts will be from the popular early retirement program, which now expects to cut 8,339 jobs, up from the previous number of 7,000.
Also, JAL will sell two subsidiaries, Chubu Sky Support Co and JAL Ground Service Kansai Co, which manage land operations at Chubu (NGO) and Kansai (KIX) airports respectively. This makes sense as JAL will drastically cut flights at these airports.
All these cuts will lower JAL labor costs to 255.2 billion yen in fiscal year 2012, a decrease of 127.9 billion yen compared to fiscal year 2009 (which is equivalent to roughly 1/3 of reduction) . And by the end of fiscal year 2014, JAL is aiming to make 106.7 billion yen net profit.
We should find out more when JAL submits its restructuring plan to the Tokyo District Court by the end of August.
Source: Reuters
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