Monday, 4th January 2010
In Business In Japan,
Japan Airlines shares up after government loan
Shares in the ailing Asian carrier Japan Airlines are up after the firm received a cash boost from the Japanese government to start off the new year.
After previously pledging 100 billion yen (£667 million) to the airline, which has been nearing bankruptcy, the government doubled the amount over the weekend.
This saw shares in the company rise by more than 31 per cent.
Talking to AFP, market analyst at Tokai Tokyo Securities Makoto Sengoku said: "There was talk about the company's operating funds drying up unless it secured a bigger credit line by January. I suppose that worry eased."
However, there is still concern over the state of the airline, he said, and it faces an uncertain future.
Before Christmas, shares in the firm dropped by 28 per cent after it was suggested that filing for bankruptcy could be on the cards for the stricken carrier, which is the biggest airline in Asia.
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)