Tokyo - Troubled Japan Airlines Corp said Thursday that it is turning to new, government-backed turnaround agency for a bail-out.

The country's largest airline said it was in negotiations with the Enterprise Turnaround Initiative Corp to win access to private and public capital.

On the same day, Transport Minister Seiji Maehara received a report from an advisory panel that said the survival of Japan Airlines, or JAL, depends on measures that included cutting jobs and unprofitable routes.

JAL was expected to suffer losses for a second year in a row as the world economic crisis drastically reduces international passenger numbers.

The airline has sought state help three times in the past decade and was looking for a government rescue for a fourth time.

"If JAL falls into a condition in which it cannot fly, it will have an extremely large impact on the Japanese economy, regional economies and foreign ties," Maehara predicted.

He did not release details from the government-appointed advisory panel's report but did cite it as saying "a considerable amount of funds and strong corporate governance will be necessary" to rescue JAL.

The government is to determine what help it would extend JAL at a cabinet meeting Friday, Maehara said.

The government was expected to provide guarantees for bridge loans, and JAL could receive more help from the Enterprise Turnaround Initiative Corp.

The agency, which began its operations this month, has access to 1.6 trillion yen (17.55 billion dollars) in government-guaranteed funds, is able to buy debt, invest in companies and provide them with loans. (dpa)