Japan Airlines Corp. said Monday it will terminate the contracts of up to 250 pilots and cabin attendants after its voluntary retirement programs failed to achieve the company's job reduction goal.
The decision by JAL and its bankruptcy administrator, the state-backed Enterprise Turnaround Initiative Corp. of Japan, was made at a time when the struggling airline is trying to obtain court approval for its restructuring plans by the end of this month.
JAL had been trying to get around 270 people — 130 pilots and 140 cabin attendants — to voluntarily retire from Oct. 26 to Nov. 9, but only managed to get 20 pilots and 50 cabin attendants to apply, the airline said.
In addition to the 250 contract terminations, the airline also plans to dismiss about 50 pilots and cabin attendants who are currently on leave, it said.
"We are in a very difficult situation with regard to carrying out further steps to implement our restructuring plan," JAL said in a statement. "We have reached the decision that we have no choice but to dismiss personnel to achieve an appropriate size of workforce."
The airline said it has informed its labor unions of the plan and will continue to accept voluntary retirement applications before the pilots and cabin attendants targeted for forcible dismissal leave in and after December.
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