Japan Airlines files for bankruptcy
After months of morbid drama, Japan Airlines (JAL) yesterday filed for bankruptcy protection as part of a biting overhaul of the debt-ridden carrier, in one of the country's biggest ever corporate failures.
Asia's biggest carrier said its flight operations would not be interrupted by the bankruptcy filing with a Tokyo court, part of a radical restructuring announced after years of losses as the company sank deeper into debt.
JAL is to slash about 15,600 jobs and receive a $3.3 billion (Dh12.11bn) injection of public funds as part of its turnaround efforts, the government said.
Japan Airlines shares will be delisted from the Tokyo Stock Exchange on February 20 or earlier, the bourse said on its website.
With estimated debts of about two trillion yen, the bankruptcy is Japan's biggest failure outside the financial sector since the Second World War, according to Tokyo Shoko Research.
JAL shares plunged to an all-time low of just ¥3 (three US cents) at one point yesterday, reducing the market value of the group to about $90m, far less than the cost of a new jumbo jet.
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