eFlyer Asia - Top News

JAL Files For Bankruptcy Protection

After months of speculation and rumours, Japan Airlines filed for bankruptcy protection on Jan. 19 under Japan’s Corporate Rehabilitation Law. JAL’s debts are estimated at USD 25.6 billion. The government-backed Enterprise Turnaround Initiative Corporation of Japan will lead JAL's restructuring, and 77 year-old, Kazuo Inamori founder of Kyocera Corp. will be the carrier's new CEO. ETIC plans to cut more than 15,000 jobs, or about 30 percent of JAL's workforce, and 31 routes in the next three years. Non-core businesses such as JAL’s hotels are expected to be sold. Meanwhile, American Airlines and Delta Air Lines are still interested in a partnership with JAL as both carriers are keen to gain access to JAL’s established network of routes within Asia.

 

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