Japan Airlines files for bankruptcy protection
National flag-carrier agrees to file for bankruptcy with 15,600 jobs being lost
Japan Airlines (JAL), the biggest air carrier in Asia, has filed for
bankruptcy today with 15,600 jobs being lost, the Times reported.
The collapse of the airline giant has been widely anticipated by the markets
and ranks as one of the country’s largest corporate failures, with talk that the
bankruptcy could be a real setback for the UK’s own British Airways and other
members of the oneworld airline alliance.
Shares in the airline company fell to a low of Y3 (about 2p) with the company
now reported to be worth about $90million (£54.8million), which, according to
the newspaper, is “less than the price of a single jumbo jet.”
“The Government will back up efforts to achieve [JAL’s] revival while
ensuring the continuation of stable and safe operations,” said Seiji Maehara,
the Japanese Transport Minister.
The airliner has 13,000 business partners and flies to 35 countries. The
serving president of JAL, Haruka Nishimatsu, is expected to resign today.