Wednesday, 20th January 2010
In Business In Japan,
Japan Airlines files for bankruptcy, announces job losses
Asia's biggest carrier Japan Airlines has filed for bankruptcy protection and will now go under restricting measures put in place by a state-backed group.
The bankruptcy of the airline, which has suffered badly due to the impact of the economic downturn on demand for travel, is one of the largest seen in Japan and will much reduce the airline's presence in the global travel industry.
Japan Airlines currently flies more than 400 routes and has 279 aircraft in its fleet.
Following today's (January 20th) news, some 15,000 Japan Airlines staff are expected to lose their jobs. More than 30 routes - 17 domestic and 14 international - will be cut from the carrier's schedule and 53 planes will be sold from the fleet by the end of March 2013.
The airline owes billions and over the past ten years it has been bailed out of financial troubles by the Japanese government four times.
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)