TOKYO (AFP) – Japan Airlines (JAL), Asia’s largest carrier, is seeking two billion dollars in emergency government loans to shore up its finances amid the global economic downturn, reports said Tuesday.

JAL hopes to secure 200 billion yen (two billion dollars) of low-interest loans from the state-backed Development Bank of Japan, public broadcaster NHK and the Asahi newspaper reported without identifying their sources.
The airline, which expects to report a net loss of 34 billion yen for the past year to March due to weak demand, is considering applying for a public loan but has not yet done so, a company spokesman said.
JAL is concerned it may not be able to secure the funds necessary to buy new aircraft and redeem bonds if the number of passengers keeps falling, NHK said.
The company may need to take cost-cut measures in addition to reductions in procurement expenses, it said.
The carrier has shed thousands of jobs and scrapped unprofitable routes in recent years in an attempt to revive its flagging fortunes.