Japan to double credit line for JAL: report

TOKYO (AFP) – The Japanese government agreed Sunday to double a state-funded credit line for troubled Japan Airlines to 200 billion yen (2.2 billion dollars), Jiji Press reported.

The extra funding was agreed at a meeting of cabinet ministers including Transport Minister Seiji Maehara and Vice Prime Minister Naoto Kan, the news agency said.

The state-run Development Bank of Japan had set a credit line of 100 billion yen for JAL in November and has already paid out just over half of the total to the carrier, Asia's largest.

JAL, battered by the global recession and swine flu pandemic, is scrambling to slash costs and is seeking its fourth government bailout since 2001 to keep flying in the face of mounting losses.

Source: AFP

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