JAL 'may get' govt loan guarantee

TOKYO: Japan Airlines Corp may get a government loan guarantee of as much as 700 billion yen ($7.8 billion), according to a state official.

The guarantee will probably be included in the second extra budget for the current fiscal year, said the official, who declined to be identified before a public announcement. The state spending package may be released today, according to Hirofumi Hirano, the government's chief spokesman.

JAL jumped the most in seven weeks in Tokyo trading as the guarantee may pare borrowing costs for the unprofitable airline. The carrier has sought government backing and financing from a state-affiliated fund to support restructuring plans after posting losses in three of the past four years.