Japan govt forms new JAL team, mulls bridging loan

Published: 29 Oct 2009 19:42:50 PST

TOKYO, Oct 30 - Japan's government will set up a new team of ministry officials to work on a bailout for troubled Japan Airlines Corp, including bridging loans, Transport Minister Seiji Maehara said.

Maehara said the new team would meet later on Friday.

Asked what the government's stance on whether to provide a bridging loan on the carrier, Maehara said: "The government team will do its best to take steps to ensure safe and stable operations of the airline."

Japan Airlines (JAL) said on Thursday it would apply for assistance from a state-backed corporate turnaround body, setting the stage for a huge injection of public funds into the troubled airline.

JAL, Asia's largest airline by revenue, said it had started preliminary talks with the Enterprise Turnaround Initiative Corp, a body of turnaround specialists established this month to buy the debt of and invest in struggling but viable firms.