Japan Airlines files for bankruptcy

TOKYO, Japan - Japan Airlines announced on Tuesday that it had 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.

By (AFP)

Published: Tue 19 Jan 2010, 3:36 PM

Last updated: Mon 6 Apr 2015, 10:25 AM

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-dollar 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 (22 billion dollars), the bankruptcy is Japan’s biggest failure outside the financial sector since World War II, according to Tokyo Shoko Research, an advisory firm.

JAL shares plunged to an all-time low of just three yen (three US cents) at one point Tuesday, reducing the market value of the group to about 90 million dollars — far less than even the cost of a new jumbo jet.

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