Monday, 18th January 2010
In Business In Japan,
Japan Airlines shares touch 5 yen
Shares in the ailing carrier Japan Airlines have fallen to a record low of five yen.
This is around three pence and comes amid reports that the firm is on the verge of filing for bankruptcy. Next week, a state-backed rescue group is scheduled to make an announcement on the future of the carrier, with bankruptcy predicted by many market analysts.
As well as this, the firm is set to be completely restructured, with routes cut and large-scale job losses also a possibility.
Over the past ten years, Japan Airlines has been bailed out by government funding four times and is currently billions in debt.
It is the largest carrier in Asia and was founded back in 1951. At its height, shares in the firm were worth 366 yen.
However, the economic downturn and associated sharp drop in demand for travel has hit the company hard and it currently owes more than £9 billion.
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)