Warnings About JAL Restructuring Renewed By ANA
Warnings About JAL Restructuring Renewed By ANA

All Nippon Airways Co. (ANA) has renewed its warning about the restructuring of Japan Airlines Corp. as it was alarmed by the quantity of the involvement of the government in it, and the reason was stated to be the fact that the overhaul which is supported by the state could seriously lessen the airline industry's competition which is not exactly healthy or good for the industry.

It has been reported that JAL would be receiving a lifeline of about $10 billion backed by the government to support all its operations that are ailing and with the received funds, they could offer discount ticket service which could be a problem for its competitors thereby disrupting the market.

The President and Chief Executive of the ANA had made his opinions clear that an airline which is surviving only through the means of government aids and public funds should not actually be the leader in the price market. However, JAL is reportedly planning to cut back by 51 planes, 31 routes and it seems that more than one - third of its employees are going to find themselves out of a job as the airline makes plans to restructure with the help of the public funds from the government.

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