Wednesday, 13th January 2010
In Business In Japan,
Japan Airlines shares fall further
Shares in ailing Japan Airlines have fallen by 81 per cent on the back of reports that the carrier may be about to file for bankruptcy.
The firm, which has debts of around £10 billion, has been on the edge of bankruptcy for some time and analysts predicted that it could file for liqduidation this week. Now, it looks likely that the company will put this off until next week at the earliest.
Since 1998, Japan Airlines has been bailed out four times by the Japanese government and also set to be given around 300 billion yen (£2.1 billion) from the state-backed Enterprise Turnaround Initiative Corporation (ETIC).
Shares in the firm fell by 45 per cent yesterday (January 12th) but figures from the Tokyo Stock Exchange showed a further fall of 36 per cent today.
Individual shares are now worth seven yen - at the beginning of 2009 they were selling for 213 yen each.
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)