The state-backed body tasked with rehabilitating Japan Airlines is looking to set up a budget carrier in the JAL group that would fly from two domestic airports to popular tourist locales in and outside Japan, sources said Wednesday.

Enterprise Turnaround Initiative Corp. of Japan would aim toward starting the discount flights by March 2013, offering low fares while saving costs, the sources said.

The turnaround body is considering operating discount routes from Kansai International Airport in Osaka and Chubu International Airport near Nagoya to popular tourist spots in Asia and domestic locations, including Hokkaido and Okinawa, the sources said.