Japan Airlines said on Friday it may reduce 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 JPY419 billion yen (USD$4.6 billion) for buying aircraft and other capital expenditures for the three years, however, may now cut it by about JPY100 billion, he said.
The company plans to announce an updated business plan, including a possible change to the budget, in February, the spokesman said.
