Monday, 11th January 2010
In Business In Japan,
Japan Airlines 'to file for bankruptcy'
Struggling Asian carrier Japan Airlines is to file for bankruptcy today (January 11th) and could be declared officially bankrupt by the end of this week, according to reports.
Despite being bailed out by the Japanese government four times over the past ten years, the firm is still grappling with debts of some £10 billion.
Several consortiums of other airlines - including a team up of American Airlines and Delta Airlines - have put in offers for the ailing carrier, with additional funding from private backers, but the Japanese government has said that the company can not take such offers as it would "overcomplicate" the situation.
Reuters reported that the state-backed Enterprise Turnaround Initiative Corp of Japan fund has pledged to donate around 300 billion yen (£2 billion) to the airline as long as it files for bankruptcy, according to a Japanese official.
Japan Airlines is currently the biggest operator in Asia and employs some 16,000 people.
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)