Executives at Japan Airlines will forgo their December pay in as the debt ridden national carrier hurtles towards a fourth year of losses in five. The company is expected to report another heavy loss on Friday when it announces second-quarter results
The pay move will affect JAL president Haruka Nishimatsu and some 70 other company officials, a spokesman for the airline revealed. According to reports 17,000 non-executive employees have also been asked to give up their winter bonuses.
Japan Air has asked the state-affiliated Enterprise Turnaround Initiative Corp. for aid as it seeks to avoid collapse amid the global economic recession. Company President Haruka Nishimatsu in September proposed cutting 6,800 jobs and carrying out the biggest reduction of routes in the airline’s history.
Asia’s largest carrier by revenue is struggling to secure fresh government aid to finance its restructuring and is shrinking fast. The restructuring process could take months, however, in part because JAL must negotiate cuts to pension payments with retirees and a group of hostile unions.