JAL to announce rehabilitation plan today

Singapore
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Japan Airlines (JAL) is set to submit its rehabilitation plan to Tokyo's District Court later today, seven months after it filed for bankruptcy protection following severe losses.

The plan will detail the carrier's financial restructuring strategy, including the number of job cuts it will carry out, says a JAL spokeswoman.

Reports say the airline's creditors will offer a ¥521.5 billion ($6.2 billion) debt waiver and that the airline will shed 16,000 jobs by the end of March 2011.

JAL has already said it would drop 45 routes from its network as it seeks to stem losses. It also announced plans to sell off non-core subsidiaries.

The airline filed for bankruptcy protection on 19 January after running up ¥2.3 trillion of debt, and has received a government bail-out to keep operating.