Report: JAL Hopes to Cut 1,000 Jobs

Tokyo-based Japan Airlines Corp. hopes to cut 1,000 jobs by encouraging employees to retire early, sources told Kyodo News.

Kyodo News also quoted sources who said the airline plans to ask corporate President Haruka Nishimatsu and other board members to give up a portion, and possibly more than half, of their pay to show their responsibility for the airline’s financial troubles.

The JAL plan calls for eliminating a total of 3,000 jobs in three years. Kyodo News said executives will cut their own pay in an effort to win union support for the plan.

JAL is also considering closing down some unprofitable routes, introducing first-class seats on domestic flights and selling some of the outstanding shares in its subsidiary trading company JALUX Inc., Kyodo said.

Kyodo said JAL’s performance was hurt by a series of incidents involving its aircraft and discord among managers.