NEWS ALERT: Japan Airlines Files for Bankruptcy


Japan Airlines filed for court-led restructuring with the Tokyo District Court, a quasi-governmental turnaround agency said.

The Enterprise Turnaround Initiative Corp. of Japan said it had decided to support the restructuring of JAL, Asia’s No. 1 carrier by revenue. JAL will revitalize its unprofitable operations with a capital injection from the agency, and by trimming its workforce and routes, ETIC said.

Under JAL’s revamp plans, the carrier will reduce its capital to zero and ask for a debt-waiver worth about $8 billion (730 billion yen) on a group basis, while cutting costs by reducing its workforce by 15,700 employees — a third of its 47,000 total.