Sunday, December 6, 2009

Tokyo is poised to back loans to keep carrier JAL going

The Japanese government is to guarantee 700bn yen ($7.7bn; £4.7bn) in loans and other funds from financial bodies to keep Japan Airlines going, reports say.

Funding will come from an extra budget for the financial year to March, which is expected to be approved this week, the Nikkei business daily has said.

It is hoped the move will keep debt-hit JAL from having to suspend scheduled flights due to a shortage of funds.

JAL has been struggling with rising fuel prices and competition

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