KUALA LUMPUR - Asia's largest carrier, Japan Airlines plans to reduce capacity on its international routes by 10 percent for fiscal year 2010, its head said on Monday.

"We plan to cut our capacity by about 10 per cent on our international routes," Japan Airlines CEO Haruka Nishimatsu told Reuters on the sidelines of the International Air Transport Association AGM in the Malaysian capital.

Nishimatsu said the airline has not decided on whether to take a multi-billion dollar government emergency loan yet but it would not consider a rights offering.

A syndicate of Japan's three biggest banks and the state-backed Development Bank of Japan are planning to lend about 100 billion yen (S$1.48 billion) to Japan Airlines Corp as early as this month, the Nikkei business daily reported last week. -Reuters