Japan Airlines announced plans Tuesday to slash 4,300 jobs over three years as part of a revival plan aimed at returning the carrier to steady profits in the face of high oil prices and sluggish demand.
JAL, Asia's largest carrier, said that it aimed to reduce its personnel costs by 50 billion yen (415 million dollars) by March 2008, and increase its fuel efficiency through hedging, more efficient aircraft and other measures.
JAL said it aimed to boost its workforce productivity by 10 percent while cutting just over eight percent of its 53,100 employees. The move comes less than two years after JAL announced it would axe almost 6,000 positions.
The carrier said it would continue to introduce more mid- and small-size aircraft and retire old planes, reducing the ratio of large planes in its international fleet from 58 percent to 39 percent over the next four years.
Earlier Tuesday JAL reported a net loss of 10.8 billion yen for the three months to December, the third quarter of the financial year, down slightly from a loss of 11.0 billion yen a year earlier.
Under its revival plan, it aims to post net profits of 7.0 billion yen in the year to March 2008, rising to 37 billion yen in the year to March 2011. This year it sees a net profit of 3.0 billion yen, after a loss of 47.2 billion in the year to March 2006. In the third quarter, JAL's operating losses shrank to 14.0 billion yen from 16.6 billion as revenue grew 4.9 percent to 584.1 billion yen.
For the nine months to December, JAL's net losses came to 9.3 billion yen, down from 23 billion yen a year earlier as its fuel bill rose 12.8 percent to 320.4 billion yen.
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