JAL may receive bridge loan from government bank

Singapore
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Japan Airlines (JAL) could receive a bridge loan from the Development Bank of Japan as it awaits a government restructuring plan.

Japan transport minister Seiji Maehara says the government-backed DBJ could provide short term financing to the struggling carrier, according to media reports. The government, however, will not provide guarantees for the loans.

A JAL spokeswoman declined to comment on the reports, or the possible amount of the bridge loan.

The carrier applied on 29 October for financial help from the Japanese Government's Enterprise Turnaround Initiative Corporation (ETIC) after Japanese banks reportedly refused to waive its debts. The ETIC, which helps companies in debts, has not made a decision on the application.

Separately, 70 JAL executives will forego their monthly salaries in December to help the carrier. Around 16,000-17,000 of JAL's 47,000 staff may also forego their winter bonus, but this has yet to be confirmed, says the spokeswoman.

JAL staff earn two bonuses a year - a summer and winter bonus. The bonus amounts to one month's pay plus 2,000 Japanese yen ($220).