Japan Airlines Corp. has set a deadline of Jan. 12 for securing approval from retirees for proposed cuts to their pension benefits, a key step for the carrier to receive state aid for restructuring, sources said Friday.
The struggling airline will send letters to each retiree this week seeking their consent for the pension cut plan, as well as outlining the amount their pension benefits will be reduced, the sources said.
As the pension cuts are viewed as a prerequisite for the airline to gain access to a broad government financial package, JAL is aiming to obtain consent from more than two-thirds of retirees.
The move follows a formal decision earlier Friday by the airline's corporate pension fund to cut slightly more than 30 percent of retirees' pension benefits and around 53 percent of employees' pension benefits.
The retirees will be asked whether they agree with the proposal and to send their replies to JAL by the deadline, the sources said.
The airline will also ask the retirees not to withdraw from the pension program by seeking lump-sum payments before the cuts are implemented.
JAL will present proposals to employees possibly this week on the amount pension benefits will be cut on an individual basis, the sources said.