Tuesday, 12th January 2010
In Business In Japan,
Japan Airlines shares plummet
Shares in Japan Airlines have dropped by 45 per cent today (January 12th) as worries over the firm's futures continue to concern investors and see its value drop.
The company is on the brink of liquidation with debts of some £10 billion and is widely expected to file for bankruptcy sometime this week.
Despite the ailing firm's condition, several big name airlines such as Delta and American have expressed interest in buying Japan Airlines, but the Japanese government has since said that such involvement could complicate the already messy business.
Over the past decade, the government has bailed out Japan Airlines four times.
Following bankruptcy speculation, shares in the carrier fell by 45 per cent to a record low.
Speaking to Business Week, Mitsushige Akino from Investment Management said that filing for bankruptcy is the best option for Japan Airlines as it is a simpler way of dealing with its issues.
Written by Kimberley Homer.
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)