JAL delays submission of restructuring plan

Singapore
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Japan Airlines (JAL) has delayed submitting its financial rehabilitation plan by two months to end-August.

The carrier, which filed for bankruptcy in January, was initially due to submit the plan to Tokyo's district court for approval by end-June.

"We need more time to flesh out the plan and to finalise more details," says a JAL spokeswoman.

The state-backed Enterprise Turnaround Initiative Corporation, which is helping JAL restructure, has approved the airline's request to delay submitting the plan.

"JAL and the ETIC will submit the plan to the court at end-August and after the court approves it, we will implement the cost-cutting measures detailed in the plan," says the spokeswoman.

The carrier, which had ¥2.3 trillion ($25.5 billion) in debt when it filed for bankruptcy, has already announced plans to drop 45 routes as it seeks to slash costs.