All Nippon mulls taking overseas flights of JAL

January 2, 2010, 1:05pm

TOKYO, Jan. 2 (Reuters) – Japanese airline All Nippon Airways is considering taking over the international routes of struggling rival Japan Airlines Corp., the Yomiuri Shimbun newspaper said on Friday.

All Nippon is looking to increase its overseas flights by targeting profitable routes to Europe and the United States and has told Japan's government of its interest, the Yomiuri said, citing unidentified sources.

JAL, whose shares hit a record low this week on expectations that it was headed for bankruptcy under a state restructuring plan, has been burdened by unprofitable domestic and international routes.

JAL has already said it will terminate flights on 30 routes, including 13 international, by June.

All Nippon competes with JAL on more than 30 of All Nippon's 40 international routes, the paper said.

''We want to increase flights to Europe and the United States,'' the Yomiuri quoted an All Nippon executive as saying.

''We will need to consolidate routes in Asia where there is an overlap.''