TOKYO, Jan. 13 (Xinhua) -- Japan's Enterprise Initiative Corp. (ETIC), a body backed by the government of the Democratic Party of Japan (DPJ), is considering setting up a budget carrier as a part of its efforts to turn around the fortunes of troubled Japan Airlines (JAL), local media reported on Wednesday.

    ETIC aims to set up the budget airline by March 2012 and run flights until early 2013, with the aim of getting customers back onto JAL planes while the company looks to cut costs.

    The government-backed body, which is tasked with making sure JAL planes stay in the air and the company returns to profitability, will focus on flights leaving from airports in Kansai and Nagoya and heading to domestic tourist destinations such as Okinawa and Hokkaido as well as popular resorts throughout Asia.

    The move aims to make sure that as well as staying afloat, JAL can remain competitive in an industry that has seen prices plummet in recent years as cost-cutting budget airlines have taken a significant chunk of market share away from established companies worldwide.

    ETIC hopes to have the airline running with fewer staff aboard planes and charges for drinks and food during flights.

    On Wednesday, JAL saw its share price plummet to 7 yen, losing more than 80 percent of their value amid fears that the company was about to declare bankruptcy.

    Despite winning the two-thirds support of former employees it needed to cut the pensions of retirees by 30 percent Tuesday, JAL saw its creditor banks approve the company taking steps to file for bankruptcy, sending jitters through the market.