Struggling carrier Japan Airlines Corp (JAL) plans to propose cutting pension payments to its employees and retirees by an average of roughly 40 percent, a Japanese newspaper said on Saturday.

JAL President Haruka Nishimatsu will present the proposal at a meeting with retirees in Tokyo on Monday, the Mainichi Shimbun said without citing any sources.

Whether the company will gain the support of at least two-thirds of its former employees needed to carry out such cuts to pension payments is unclear, Mainichi added.

Japan Airlines officials were not immediately available for comment.

JAL has applied for aid from a state-backed turnaround fund and could receive a large injection of public money from the fund if it can secure the backing of creditors and come up with a viable restructuring plan.

That plan hinges on addressing its pension shortfall, which JAL estimated at 330 billion yen ($3.71 billion) in March.

JAL President Nishimatsu made a plea to the company's pension fund in May for payments to be reduced by more than half.

That triggered strong opposition from retirees and employees, who under current laws can easily block any cuts to their benefits if just one third of them vote against.

To get around this, the government has been considering legislation to push through reductions to pension payouts.

Shares of JAL, which have lost more than half their value this year, closed down 3 percent at 95 yen on Friday, their lowest close since a relisting in 2002.

($1 = 88.86 Yen)

(Reporting by Masayuki Kitano; Editing by Sugita Katyal)