TOKYO (Dow Jones) – Struggling carrier Japan Airlines Corp. said it will discontinue a total of 16 routes starting next month as part of its own efforts to trim operating costs and cut losses.

The move comes as Japan's government attempts to put together a multi-billion dollar rescue plan for the airline, which has been posting heavy losses amid the business and leisure travel slowdown triggered by the global economic downturn.

A quasi-government investment fund called the Enterprise Turnaround Initiative Corp., with access to up to ¥1.6 trillion in state-guaranteed funds and the ability to purchase the debts of beleaguered companies, is currently studying prospects for bolstering JAL's balance sheet and easing its debt burden. JAL is bogged down by over ¥1 trillion in net debt plus pension obligations and other legacy costs.

In a statement, the airline, known as JAL, said it will cut eight international passenger routes, mainly to destinations in Asia. A further eight domestic passenger routes will be discontinued, including short-haul flights like Tokyo to Kobe, as well as one cargo route.