Japan Airlines Goes Bankrupt

Delta and American vie for piece of restructuring JAL
By Newser Editors and Wire Services
Posted Jan 19, 2010 3:50 AM CST
Japan Airlines Goes Bankrupt
A man takes a photo of a Japan Airlines jet through a fence at Haneda Airport in Tokyo, Japan, Tuesday, Jan. 19, 2010.   (Junji Kurokawa)

(Newser) – Japan Airlines filed for bankruptcy today in one of the nation's largest corporate failures, entering a restructuring from which it seeks to emerge leaner, smarter, and free of crippling debt. Asia's biggest carrier by revenue, staggering under a $25 billion debt mountain, JAL will slash nearly 16,000 jobs, cut routes, and shift to more fuel-efficient aircraft as part of its restructuring.

Government cash will keep JAL's planes in the air during the reorganization; its shares will be removed from the Tokyo Stock Exchange. Delta Air Lines and American Airlines are battling for a slice of JAL's business, with Delta and its SkyTeam partners offering $1 billion, including $500 million in cash, to lure JAL away from American's Oneworld alliance. American Airlines and its partners say they are ready to inject $1.4 billion cash into the Japanese airline.
(Read more Japan Airlines stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X