American Airlines comes to the rescue of Japan Airlines

Bloomberg and Expansion report that those, who are responsible for the U.S. airline are considering taking an equity stake in Japan Airliness, as part of the agreement, which would also include an agreement of collaboration for transoceanic routes between the two companies.

If the agreement occurs, American Airlines would invest hundreds of millions of dollars into the Japanese airline, WSJ reported in its Sunday issue.

Japan Airlines, acknowledged in the second quarter loss of $ 1,100 million (755 million euros). The airline is seeking an agreement that will inject capital into the company. In fact, the airline was in talks with other companies interested in investing capital. Air France-KML and Delta are two of the airlines, according to Japanese media, that had showed interest in investing in Japan Airlines.

The Japanese company, which has received about 1,100 million dollars of financial support from the government of Japan must present a plan for restructuring the company by the end of this month.

According to Japan's business daily Nikkei, Japan Airlines needed about 2,500 million (1,720 million euros) to finance the restructuring plan and to address poor performance arising from the crisis. The plan envisages a cut in expenditure to dispense 1,200 workers and reduce its operations and air routes. The plan also envisages smaller planes to accommodate the lower demand.

Written by Armen Hareyan
Materials from WSJ, Expansion and Bloomberg are used in this report.