News / Asia

Japan Airlines Files for Bankruptcy

Multimedia

Audio

Japan Airlines has filed for bankruptcy protection after struggling for years. The largest airline in Asia will continue operating flights but the Japanese government is acting quickly to pull JAL out of its economic mess.

Japan Airline's bankruptcy filing is one of Japan's largest corporate failures in decades.

The former state-owned carrier once symbolized the strength of the country's post-war economic boom. But its financial fortunes declined in the last decade with the fallout from the September 11 attacks, a surge in fuel prices, and the worldwide economic slowdown. The company racked up more than $20 billion in debt and its share price has dropped to a record low of about three cents.

The Japanese government bailed out the airline three times in the last 10 years but it could not save the company from bankruptcy this time.

Japan's finance minister, Naoto Kan, vows the government will do all it can to reverse JAL's economic fortunes.

The airline will continue to operate daily flights but the government is planning restructuring efforts that will significantly reduce JAL's size. About a third of the work force is expected to be cut, along with more than a score of international and domestic routes.

A state-backed group will oversee the restructuring plan, with a new chairman at the helm. The government has asked Kyocera founder Kazuo Inamori to lead JAL.

In exchange for the bankruptcy filing, JAL will get about $3 billion in capital from the government. The company's lenders will be asked to forgive about $3 billion in loans.

Although the restructuring plan is expected to take three years, Land, Transport, and Tourism Minister Seiji Maehara says the government will act swiftly, without disrupting service to passengers.

Maehara says they will look to maintain stability and safety in the air as they move forward with this process.

The Japanese airline's financial failure has opened up a bidding war among American airlines. Delta and American Airlines have both offered a $1 billion  in financial support, in an attempt to form closer alliances with JAL.

 

You May Like

Video China Investigates Powerful Former Security Chief

Analysts say move by President Xi is an effort to win more party support, take step toward economic reforms, removing those who would stand in way of change More

South Africa Land Reforms Still Contentious 20 Years Later

Activists argue that the pace of land reform is slow and biased; legal experts question how some proposed reforms would be implemented More

In Vietnam, Religious Freedoms Violated, UN Finds

Beliefs reportedly prompt heavy surveillance, intimidation and travel restrictions More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Gazans in Shelled School Sought Shelteri
X
Scott Bobb
July 30, 2014 8:16 PM
Israel's air and ground assault against Hamas-led fighters in Gaza has forced many Palestinians to flee their homes, seeking safety. But safe places are hard to find, as VOA’s Scott Bobb reports from Jabaliya.
Video

Video Gazans in Shelled School Sought Shelter

Israel's air and ground assault against Hamas-led fighters in Gaza has forced many Palestinians to flee their homes, seeking safety. But safe places are hard to find, as VOA’s Scott Bobb reports from Jabaliya.
Video

Video Rapid Spread of Ebola in West Africa Prompts Global Alert

Across West Africa, health officials are struggling to keep up with what the World Health Organization describes as the worst ebola outbreak on record. The virus has killed hundreds of people this year. U.S. President Barack Obama and other world leaders are watching the developments closely as they weigh what actions, if any, are needed to help contain the disease.
Video

Video Michelle Obama: Young Africans Need to Embrace Women's Rights

U.S. first lady Michelle Obama urged some of Africa's best and brightest to advocate for women's rights in their home countries. As VOA's Pam Dockins explains, Obama spoke to some 500 participants of the Young African Leaders Initiative, a six-week U.S.-based training and development program.
Video

Video Immigrant Influx on Texas Border Heats Up Political Debate

Immigrants from Central America continue to cross the U.S.-Mexico border in south Texas, seeking asylum in the United States, as officials grapple with ways to deal with the problem and provide shelter for thousands of minors among the illegal border crossers. As VOA's Greg Flakus reports from Houston, the issue is complicated by internal U.S. politics and U.S. relations with the troubled nations that immigrants are fleeing.
Video

Video Study: Latino Students Most Segregated in California

Even though legal school segregation ended in the United States 60 years ago, one study finds segregation still occurs in the U.S. based on income and race. The University of California Los Angeles Civil Rights Project finds that students in California are more segregated by race than ever before, especially Latinos. Elizabeth Lee reports for VOA from Los Angeles.
Video

Video Vietnamese Staging Chinese Product Boycott After Oil Rig Spat

China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video A Summer Camp for All the World

VIDEO: During workshops and social gatherings, the Global Youth Village summer camp encourages young people to cooperate and embrace their differences, while learning to communicate with people from other countries. VOA's Deborah Block has more.
Video

Video From Cantankerous Warlock to Incorruptible Priest, 'Harry Potter' Actor Embraces Diverse Roles

He’s perhaps best known as Mad Eye Moody, the whimsical wizard in the Harry Potter franchise. But character actor Brendan Gleeson's resume includes dozens of films, and he embraces all the characters he inhabits with equal passion. In an interview with VOA’s Penelope Poulou, Gleeson discussed his new drama "Calvary" and his secret to success.

AppleAndroid