Japan Airlines Corp. is considering borrowing some ¥200 billion from the Development Bank of Japan, sources said Thursday.

The air carrier hopes to take advantage of a government lending program put together in December and aimed primarily at cash-strapped large corporations.

JAL believes its revenue in the business year from April looks certain to be much lower than its earlier projection and it will require around ¥200 billion for capital investment, debt repayments and other needs, the sources said.

For the year through March, JAL anticipates a consolidated net loss of ¥34 billion, due in part to a sharp drop in demand for corporate travel amid the global economic downturn. The projected loss is also attributed to a decline in international cargo amid the downturn, and comes despite cost-cutting measures by airlines, including fewer flights and pay cuts.

"(Demand for) international passenger flights and international cargo has deteriorated dramatically from last autumn due to the global downturn," Yoshimasa Kanayama, JAL's senior vice president for finance, told a news conference in Tokyo earlier this month. "We need to brace for a significant decline in revenue for the fourth quarter (of business 2008 through March) as well."

The carrier is in talks with relevant government agencies, including the Land, Infrastructure, Transport and Tourism Ministry, to obtain financing, the sources said.

The formerly government-affiliated development bank, which was privatized last October, offers low-interest financing under the program.

JAL is also weighing a plan to ask for more direct forms of government assistance, including an injection of taxpayer money to bolster its capital base, the sources said.

JAL is streamlining its operations and workforce while seeking financial help. On Wednesday, the carrier announced yet another restructuring step, saying it will consolidate its aircraft maintenance operations.