A state bank will tide Japan Airlines over with bridge loans to keep it running until it is permanently restructured financially and operationally.

The government says it will arrange the loan, although it does not say how much money will be extended. The short-term financing has been expected, since the government has previously said that Japan Airlines is too big to fail.

Legislation to force a cut in Japan Airlines' pension payments will also be considered.

American Airlines, seeking to deflect Delta's attempt to lure Japan Airlines away from the oneworld alliance and into Skyteam, says it and private equity firm TPG could invest in the ailing Japanese airline.

Another oneworld member, Qantas, says it is willing to help Japan Airlines restructure by sharing its experience in setting up low-cost subsidiary Jetstar.

Top management changes are likely in the Japan Airlines' restructuring, which is increasingly a state-run affair. President Haruka Nishimatsu and other senior executives should "of course" resign, says Finance Minister Hirohisa Fujii, who has been unenthusiastic about rescuing the airline.

Management is undoubtedly responsible for such a situation, he says, although Transport Minister Seiji Maehara has also blamed the construction of unnecessary airports that Japan Airlines has been forced to serve, despite poor demand.

Photo credit: Japan Airlines