Govt team launched to keep Japan Airlines afloat
Tokyo: The government of Japan has launched a new team involving related ministries and offices to discuss measures to keep Japan Airlines Corp afloat as it begins turnaround efforts under state supervision.
The major topics to be addressed in the coming weeks will include whether to attach state guarantees on about 180 billion yen in bridge loans to prevent the struggling airline from facing a cash shortage as early as next month.
"If the airline does not fly, it is possible that the Japanese economy will fall into serious trouble," Seiji Maehara, the minister of land, infrastructure, transport and tourism, said at the outset of the team's first meeting.
"To avoid flight disruptions, we created this kind of task force," Maehara said. "The government will make concerted efforts to offer a support system."
The task force, headed by Maehara, consists of senior vice ministers from key ministries, including finance, labor and welfare, and industry.
The government is stepping up its involvement in turning around JAL after Maehara instructed it Thursday to apply to a recently launched government-backed corporate turnaround body to gain access to both private and public funds.
Shu Watanabe, senior vice minister of internal affairs, told reporters after the meeting they did not deal with the issue of providing bridge loans or anything concrete on how to rehabilitate the airline.
"Maehara explained what has happened and participants only exchanged views from their respective standpoints," Watanabe said.
Bureau Report