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Last Updated: Thursday, 28 September 2006, 07:19 GMT 08:19 UK
Japan Airlines holds strike talks
Japan Airlines plane
Many domestic flights could be grounded by a strike
Japan Airlines (JAL) is in talks with unions, in an attempt to head off a strike over the planned merger of its domestic and international operations.

Unions representing domestic pilots have threatened to walk out for two days on 30 September over the changes.

Workers are concerned the merger will lead to salary cuts for crew and force top pilots to quit their union.

A strike would also have a significant effect on its domestic service, which runs more than 300 flights per day.

Turnaround bid

A strike would be a blow to JAL, which reported a group operating loss of 26.83bn yen ($241.5m; �130m) in the year to March.

The airline has been trying to rebuild travellers' confidence following a number of safety lapses, which included an engine fire.

In an effort to revive its fortunes JAL has tried to overhaul its network, focusing on its most profitable routes.

It has also been working to merge its two units JAL International and JAL Domestic - the source of the current strike row - and has won union backing to bring in wage cuts of around 10%.




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