Japan Airlines set for bankruptcy

Source: al jazeera

Japan Airlines (JAL) is expected to file for bankruptcy protection on Tuesday, ending months of speculation over the debt-ridden carrier's future.

If it goes ahead, media reports at the weekend said, the bankruptcy filing will be immediately followed by a government-backed restructuring aimed at trimming down the airline, cutting several routes and about a third of its staff.

Worries over the airline's future have seen its stock price plunge in recent days, losing more than 90 per cent of its value.
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While the government has said it will do all it can to ensure JAL keeps flying during restructuring, equity investors in the airline are expected to lose most or all of their money if the company files for bankruptcy.

Read more: http://english.aljazeera.net//business/2010/01/20101189120598707.html

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i hope it has a better destiny than italian Alitalia. the government made a mess.

I'm not familiar with airline bankruptcy restructuring... how will this affect my ticket prices? Up? Down? No change?

Anyone familiar with this kind of stuff?

...cuts in personnel and in some routes, at least in the early months, to re-launch the company.
you'd better check in some financial papers that reports it to be sure.

ciao.

and cut back on its international routes.

This may be bad news for you if it means that Delta takes over its North America routes.

.

that JAL was in trouble. I'm not surprised at the news. I'm just surprised at how fast the stock price has fallen-- it's down to about 7 cents a share, last I heard.

Japan Airlines (JAL), Asia's biggest air carrier, has filed for bankruptcy protection, in one of the country's biggest corporate failures.

Some 15,000 jobs are expected to be cut. All board members have also voted to resign, according to Japanese media.

A state-backed turnaround organisation has said it plans to inject about 300bn yen ($3.3bn; £2bn) into JAL.

Japan's government says flights will continue as normal as the airline begins restructuring.

source bbc, http://news.bbc.co.uk/2/hi/business/8466997.stm