Struggling Japan Airlines Corp. intends to merge its JALways Co. unit, which chiefly serves on leisure and low-yielding routes, with its key subsidiary Japan Airlines International Co. on Dec. 1, company officials said Friday.
JAL plans to merge the two Tokyo-based firms as part of its turnaround plan, which it is set to submit to the Tokyo District Court by the end of the month. The plan comprises various measures, including cuts in unprofitable flights and the workforce, to restore profitability.
JALways was set up in 1990 on a business model that curbs costs by hiring Thai and other foreign nationals for its crew and had about 2,130 employees as of April. It booked ¥156.3 billion in sales in fiscal 2009.