Tuesday, 24th November 2009
In Business In Japan,
Japan Airlines set for bailout
Japan Airlines is to be given an emergency loan from the Development Bank of Japan in a bid to prevent the firm having to cut flights and ground planes.
The ailing carrier has been bailed out three times before by the state-run bank, as it struggles to pay off huge debts and a deficit in its pension fund.
In a statement, the carrier said that it had been given "funds necessary for the continuation of our flight operations" but was not explicit about the amount.
However, the Associated Press speculated that the amount could be as much as $1.1 billion.
As well as the bailout cash, Japan Airlines has been given government permission to take out more loans totalling 25 billion yen.
The carrier has faced massive losses over the past year, as Japan struggled with its deepest recession since the end of the second world war and demand for luxuries such as air travel fell.
Written by Mark Smith.
Related news stories:
Japan Airlines gets bid from consortium (18th September 2009)
Japan Airlines announces US airline deal (13th January 2011)
Japan Airlines 'to take American offer' (9th February 2010)
New management take over Japan Airlines (3rd February 2010)
US carrier makes new offer to Japan Airlines (3rd December 2009)