JAL In Talks On 200 Bln Yen Government Loans

February 18, 2009

Japan Airlines is in talks on securing up to JPY200 billion yen (USD$2.14 billion) in low-interest government loans and could also tap a new government initiative that gives businesses capital infusions, financial daily Nikkei said in its Thursday edition.

The Development Bank of Japan is making the long-term loans available to try to mitigate the effects of the global financial crisis.

JAL's passenger traffic and revenue have been falling and if the trend continued, the carrier could find itself low on funds later in the year, when it is due to buy aircraft and make other capital investments, the Nikkei said.

The paper said JAL should need about JPY200 billion to cover fiscal 2009 capital spending and bond redemptions.