News: Japan Airlines heading for bankruptcy
Flights > News > # 2381 (12/01/2010)
Japan Airlines (JAL) is on the verge of being declared bankrupt despite offers of aid from US rivals that could rescue the ailing Japanese flag carrier.
The airline, which is the biggest in Asia but is burdened with debts of £10bn, will file for bankruptcy as part of a state-¬sponsored restructuring that is likely to see it emerge significantly smaller. JAL’s flights from London Heathrow to Osaka and Tokyo Narita are not likely to be effected during the restructuring process.
Government officials said they would reject offers of equity investment in the airline from American Airlines and Delta, ahead of a bankruptcy filing.
They said the government planned to put in new management and restructure the company before seeking to negotiate with rival airlines over possible tie-ups.
A potential move by JAL to leave the Oneworld airline alliance and join the SkyTeam group would have a severe impact on British Airways, which currently offers a number of highly profitable Far East routes through codeshare agreements with the Japanese carrier.
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