JAL Files For Bankruptcy Protection

JAPAN AIRLINES (JAL) has filed for bankruptcy protection as it prepares to restructure to reduce its debts.  It confirmed on January 19 that “to speed up its revitalisation” it “filed for protection at the Tokyo District Court under Japan’s Corporate Reconstruction Law.”  Under a Government-led proposal, JAL will slash its workforce by around a third over the next three years, renew its fleet and end more than 30 routes.  JAL has reported debts of ¥2.3 trillion ($25.2 billion) but Japan’s Enterprise Turnaround Initiative Corporation will inject ¥300 billion, with another ¥600 billion credit line also available.  The ETIC is working with JAL’s creditors to restructure the airline’s debt.