JAL is reviewing its business plan and considering scaling back purchases of new aircraft as demand for international travel falls. -- PHOTO: AGENCE FRANCE-PRESSE
TOKYO - JAPAN Airlines Corp (JAL) said on Friday it may slash its capital spending budget for the three years to March 2011 by nearly a quarter, prompted by falling demand for international flights.
Asia's largest carrier is currently reviewing its business plan and considering scaling back purchases of new aircraft to replace older and bigger ones currently in use, a JAL spokesman said.
JAL has earmarked 419 billion yen (S$6.6 billion) for buying aircraft and other capital expenditures for the three years, however, may now slash it by about 100 billion yen, he said.
The company plans to announce an updated business plan, including a possible change to the budget, in February, the spokesman said.
JAL shares were flat at 209 yen, while rival All Nippon Airways Co (ANA) were flat at 349 yen. -- THOMSON REUTERS
