Japan Air has predicted a loss of ¥34 billion (US$340 million) for last fiscal year, its third loss in four years, and has ¥30 billion of bonds to repay by August. Manufacturers such as Isuzu Motors Ltd., Hino Motors Ltd. and Nissan Diesel Motor Co. have said they may apply for loans from the state-owned Development Bank of Japan.

“It will help Japan Airlines,” said Yasuhiro Matsumoto, an analyst in Tokyo at Shinsei Securities Co. “For the very immediate future liquidity has been a major concern.”

All Nippon has also said it will report a loss for the year ended March 31 as the economy shrank at the fastest pace in 24 years, sapping business travel demand.

Japan Air and All Nippon borrowed a total of ¥140 billion ($1.4 billion) during the SARS outbreak in 2003.

The government also plans to lower landing fees at airports to reduce their costs and increase the amount of takeoff and landing slots available to airlines at Tokyo’s Haneda airport, according to the statement.

Source: Bloomberg