TOKYO - ASIA'S largest carrier Japan Airlines is preparing to book a loss of about 20 billion yen (S$253 million) in possible fines by US authorities, a report said on Saturday.

The company is looking to officially announce the decision in November after discussing the matter with auditors, the Asahi Shimbun newspaper said, without citing sources.

Japan Airlines is among the targets of an investigation by US and European authorities over a massive price-fixing conspiracy or 'cartel' among international carriers in connection with surcharges for rising oil prices, the paper said.

The US Justice Department announced in August that British Airways and Korean Airlines each agreed to accept 300-million-dollar fines in connection with conspiracies to fix the prices of passenger and cargo flights.

Virgin Atlantic and Lufthansa AG, which were also part of the cartel, have agreed with US authorities to cooperate with their investigation on the matter.

Japan Airlines is going through a drastic restructuring programme, cutting thousands of jobs and routes and shifting to smaller planes. -- AFP

Photo: AFP