JAL cuts IBM ties

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Wednesday, 23 June 2010

Japan Airlines says it is to terminate its information technology (IT) partnership with IBM Japan as part of its cost-cutting efforts.

The debt-plagued Japanese airline says as a result, it might buy IBM Japan's 51 per cent stake in JAL Information Technology Company.

JAL's group workforce could increase by around 1,000 if JAL Information Technology becomes a subsidiary, but the airline expects to save tens of billions of yen in costs over the long haul, the Nikkei newspaper reported.