Copyright Photo: Antony J. Best. Please click on photo for full view, information and other photos.

JAL-Japan Airlines’ (Tokyo-Haneda) today (October 14) received the government-led task force proposal.  The plan proposes the following restructuring plan. It includes the following:

– replace all current executives
– cut over 9,000 employees
– cut pension payments by 50 percent
– ask banks to forget JPY300 billion of debt
– raise JPY150 billion through debt-equity swaps
– spin off subsidiaries
– cut all unprofitable routes

The plan still not has been ratified, and things like pensions need to be approved by the retiree’s union.  The debt also needs to be renegotiated with the banks.  Either way JAL will be a much smaller airline and group.