| NEWS ARCHIVES |
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| JAL shares plunge on report that it may not sell assets |
| 16 Oct 2009 |
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Shares of Japan Airlines (JAL) fell to their lowest level in seven years in Tokyo today.
The airline declined for a fourth day, slumping as much as 11 percent to 101 yen in intra-day trade.
Its shares fell after Kyodo News reported that the carrier may drop a plan to sell a stake in J-A-L-ways.
JAL may hold on to JALways if it is able to win support from financial institutions.
Previously, JAL had forecast a profit of 90 billion yen or about 992 million US dollars from the sale of stakes in the resort-focused carrier and other units.
Over the past month, JAL plunged 40 percent after Japanese Prime Minister Yukio Hatoyama’s new government took office.
He had rejected a turnaround plan drawn up by the carrier.
The airline is now working with a state-appointed panel on a new restructuring programme and is seeking help from lenders.
The Tokyo-based airline predicts a loss of 63 billion yen this fiscal year as a global recession causes a slump in demand for air travel.
It will cut 6,800 jobs and have the biggest-ever reduction in its network of routes. |