Ally

Nov. 19 (Bloomberg) -- All Nippon Airways Co. and Japan Airlines Corp., the country's two largest carriers, said they may cancel some domestic flights on Nov. 21 because of a one-day strike.

The stoppages may force the cancellation of about 13 percent of All Nippon's internal flights and as much as 16 percent of Japan Air's, the airlines said in separate e-mailed statements today. Both said international services won't be affected.

The two carriers are still in talks with unions in a bid to prevent the strikes, they said. The airlines are already under- pressure on domestic routes from low-cost rival Skymark Airlines Inc., which boosted passenger numbers about a third in the three months ended September, according to figures compiled from its Web site.

All Nippon pilots are seeking a reduction in the size of the carrier's Bombardier Inc. Q400 turboprop fleet and training to be able to fly jet aircraft, airline spokesman Rob Henderson said by phone.

Stephen Pearlman, a Japan Airlines spokesman, wasn't immediately available for comment. The Tokyo-based carrier is negotiating with four unions, according to its statement.

``We want the company to live up to their earlier pronouncements'' regarding bonuses and working conditions, said Shozo Tsue, a deputy secretary general at JAL Cabin Crew Union. The company's offer of one-month's pay plus 40,000 yen ($362) is less than the 1.8-month's pay the airline deemed to be the minimum in 1993, Tsue said.

Working Conditions

The union is also demanding improved working conditions, such as allowing employees to leave at an earlier time if they have an early morning duty the following day, Tsue said.

No one at JAL Workers' Union was available for comment.

Japan Air rose 1.5 percent to close at 276 yen at 3 p.m. on the Tokyo Stock Exchange. The stock has gained 30 percent this year. All Nippon climbed 1.2 percent to 415 yen. The strike announcements came after the end of trading.

Separately, Japan Air was removed from a ``negative'' credit watch by Standard & Poor's. Its credit rating was reaffirmed at B+, four levels below investment grade, according to a statement today from the rating company.

(Bloomberg)