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Tue Dec 15, 2009 3:25am EST
TOKYO, Dec 15 (Reuters) - Japan Airlines Corp (9205.T) said on Tuesday 5,700 retirees were willing to accept proposed cuts to pension payouts, but it was unclear whether the struggling airline had sufficient numbers to secure approval for reducing its pension burden.
JAL needs two thirds of 8,800 retirees and 17,000 employees to agree to reduce its pension burden. It also said that more than 90 percent of its employees had responded to its survey that that they understood the need for pension cuts.
JAL has asked retirees and employees to accept an average 40 percent cut to their pension payouts by the end of January. The carrier has warned it could face bankruptcy unless it addresses a pension shortfall of about 330 billion yen. [ID:nT199640]
Coming up with a solution to the shortfall is seen as a prerequisite to qualifying for the support of a state-backed turnaround fund, which is now debating whether to bail out the airline with public funds. [ID:nT349661]
If JAL and its employees and retirees cannot come to an agreement, the government has said it would consider crafting legislation to forcibly implement cuts.
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