"JAL will not go bust"

 Minister gives assurance 

The Japanese government will not force Japan Airlines (JAL) into bankruptcy, its transport minister said.

Seiji Maehara gave his assurance while speaking on a television show over the weekend in Tokyo.

He was quoted by Associated Press as saying: "We will not crush and liquidate (the airline). It's just impossible."

Mr Maehara, part of Japan's new incoming Democratic Party government, has already appointed a panel of experts to draw up a re-structuring plan for the loss making airline.

He has said the one presented by JAL which involves 6,800 staff losses, the axing of international routes and a freeze on pay and pensions is "insufficient."

The Minister's remarks come after a meeting with the carrier's executives last week at which they asked for public money to tide them over their current cash crisis.

Seiji Maehara

Japan's national carrier and a member of the oneworld alliance posted a  $692m loss for last year and announced a $1bn loss for the quarter to June this year.

It is heading for a deficit of $700m for the financial year ending next March.

JAL has already received a loan of $1.1bn earlier this year from the previous Japanese government.

The carriers is currently also in talks with fellow oneworld airline American Airlines and Delta Air Lines, a member of the rival SkyTeam group, over a £300m cash injection.

BA and Qantas, also oneworld members, have sent executives to Tokyo to try and persuade JAL not to leave their alliance.

Haruka Nishimatsu, JAL's president and ceo, has said the airline would make a decision on either Delta or American in mid-October.

Mr Maehara said he wanted his panel to come up with are-structuring plan with in five to six weeks.

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