see all jobs
Bankruptcy protection for Japan Airlines
National flag carrier Japan Airlines (JAL) has been forced to apply for bankruptcy protection from the Enterprise Turnaround Initiative of Japan (ETIC) after running into financial difficulties.
The airline, which owns or leases 279 aircraft and operates out of 217 airports in 35 countries, confirmed on 19 January that it had successfully applied to ETIC for help in restructuring the business. Established in 1953, JAL said that a number of factors had contributed towards a decline in demand for international air travel since the turn of the century, such as the 11 September terrorist attacks, the outbreak of SARS and the Iraq war.
The company, which is ¥1,157bn (£8bn, €9.1bn, US$12.8bn) in debt, is now expected to scale down its operations by adopting measures, such as switching from low-efficiency large aircraft to high-efficiency small aircraft and axing some of its unprofitable routes. Assets are expected to be sold and jobs will be lost as part of the restructuring of JAL, which will receive more than ¥300bn (£2.1bn, €2.4bn, US$3.3bn) after ETIC decided to acquire the company's debt.
JAL's creditors are also set to be asked to forgive ¥730bn (£5bn, €5.7bn, US$8.1bn) to relieve some of the company's debt, while a further ¥600bn (£4.1bn, €4.7bn, US$6.7bn) of credit will be provided by ETIC and the Development Bank of Japan.
More News
- News by sector (all)
- All news
- Fitness
- Personal trainer
- Sport
- Spa
- Swimming
- Hospitality
- Entertainment & Gaming
- Commercial Leisure
- Property
- Architecture
- Design
- Tourism
- Travel
- Attractions
- Theme & Water Parks
- Arts & Culture
- Heritage & Museums
- Parks & Countryside
- Sales & Marketing
- Public Sector
- Training
- People
- Executive
- Apprenticeships
- Suppliers