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JAL files for bankruptcy protection

19 January 2010

Japan Airlines (JAL) has filed for bankruptcy protection, but will continue to operate as it undergoes a financial restructuring plan led by a government-backed body.

There will be ¥900 billion ($10 billion) injected to keep JAL operating while it restructures - Japan's Enterprise Turnaround Initiative Corporation (ETIC), tasked to turn JAL around, will inject ¥300 billion into the carrier and separate ¥600 credit line will also be available to JAL.

Creditors have also agreed towaive ¥730 billion of the airline's ¥2.3 trillion in debt.

JAL is expected to shed a third of its workforce - or 15,700 jobs - over the next three years and retire 37 Boeing 747-400s.

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