Air Transport

Japan Airlines (JAL) is cutting more international services and stepping up aircraft retirements to curb growing losses from overseas operations.

Asia’s largest airline group has seen its financial position deteriorate this year, as it has been hurt by high fuel prices and a drop in demand caused by negative publicity over safety-related issues. JAL says it is cutting 10% of its international flying when measured by available seat kilometres in a bid to return its loss-making international arm to profitability by the end of the 2006 fiscal year.

Five routes will go and frequencies on other routes will be reduced, while lower-cost international arm JALways will take over more flying. JAL says that it will also “accelerate fleet downsizing”, by retiring three Airbus A300s, six Boeing 747 Classics, and four NAMC YS-11s.

NICHOLAS IONIDES / SINGAPORE