The bridge loans being extended to Japan Airlines by the Development Bank of Japan and the Enterprise Turnaround Initiative Corporation of Japan (ETIC) may eventually reach a higher-than-expected JPY655 billion yen (USD$7.31 billion), the Nikkei newspaper reported Wednesday.

JAL, Asia's largest carrier by revenue, which filed for bankruptcy protection to pursue turnaround efforts under the auspices of the ETIC, needs around JPY600 billion in bridge loans, the Nikkei said.

The business daily said the Development Bank of Japan is expected to extend a total of JPY300 billion in bridge loans, up from the initial estimate of JPY200 billion.

The remaining JPY355 billion will be provided by the ETIC. The Nikkei said bridge loans from both entities are planned to be replaced by loans from private financial institutions once the state-backed ETIC's turnaround plan receives court approval this summer.

But whether private banks extend funds will depend on their assessment of the ETIC's blueprint, including whether Japan Airlines has a realistic chance of generating profit, the Nikkei added.

The Development Bank of Japan may be stuck with a higher lending balance to JAL than originally planned, if private financial institutions do not provide loans later this year, resulting in a bigger burden on taxpayers, the newspaper said.