Japan Airlines Corp. executive Haruka Nishimatsu announces Sept. 30 that its group business sank into the red in the six months to Sept. 30.

The wage cuts, announced Nov. 7, will be introduced from Jan. 1, 2006, to March 2008, and the company will hold talks with labor unions, it said in a statement outlining reforms. Board members' pay will be reduced by 23 percent to 40 percent, it said.

Japan Airlines posted a group net loss of ¥12.04 billion for the six months -- the airline's first half-year loss in two years.

Apart from the rise in fuel costs this year, the company has been plagued by a series of safety problems, which cut passenger numbers by 1 percent to 29.5 million during the period from 29.8 million the same period last year.

As part of its latest round of reforms, Japan Airlines will invest about ¥60 billion in safety-related systems and measures between fiscal 2006 and fiscal 2010, including strengthening technology and maintenance facilities.

The Japan Times Weekly: Nov. 12, 2005
(C) All rights reserved