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JAL Will Return About ¥290 Million After Probe Finds Improper NEDO Subsidies

An external lawyer’s investigation into payments for a METI‑overseen NEDO air‑mobility research project raises fresh questions about oversight of public R&D funding.

Overview

  • Japan Airlines said it will return roughly ¥290 million that it received for a jointly run research project after internal and external reviews found the payments were improper.
  • An outside lawyer’s probe identified that some labor costs were paid on the basis of work records that did not match actual duties and found the misuse was driven by instructions from management.
  • The funds came from a public‑call program run by NEDO, the research arm supervised by the Ministry of Economy, Trade and Industry, to study safe use of electric 'flying cars' and drones for logistics and labor efficiency.
  • JAL has said it will withdraw from the ongoing portion of the project, consider disciplinary action for involved personnel, and carry out company‑wide governance reforms to prevent repeat problems.
  • The case puts scrutiny on how government R&D grants are monitored and could prompt tighter audits or policy changes for NEDO and other public research programs, with knock‑on effects for private partners and the emerging air‑mobility sector.