Transport minister Seiji Maehara said Wednesday that the government will provide firm backup for struggling Japan Airlines Corp to avert any serious cash shortage in a move meant to allay "excessive" concern spreading about Japan's top air carrier.
Maehara said he met with Prime Minister Yukio Hatoyama earlier in the day to confirm the government's position to support JAL's turnaround efforts after he heard that several inquiries had been made regarding JAL's condition by overseas financial institutions.
"Excessive concerns regarding JAL are spreading," Maehara said at a press conference in Tokyo. "The government needs to firmly erase them."
"The government will provide backup in order to avert funding difficulties," Maehara said, but emphasised that JAL is not facing an immediate cash shortage.
Under the guidance of the task force set up by the Land, Infrastructure, Transport and Tourism Ministry, JAL will draw up an outline of its new business improvement plan by around late October and finalize it around the end of November, giving the carrier another two months from its original target for compiling the plan of later this month.
"JAL's self-reconstruction if fully possible," Maehara emphasised.
