Japan Airlines Corp is considering cutting bonuses and retirement allowances as part of its management rehabilitation efforts, sources familiar with the matter said on January 17.

As cuts in the payment of bonuses and retirement benefits will not be accompanied by restructuring costs, they are considered to be an effective way to implement JAL's plan to slash its total group labor costs by 10%, or 45 billion yen, they said. JAL has already decided to eliminate 3,000 jobs, or about 5% of its total group workforce of 53,000, in the three years from fiscal 2007 beginning in April.