Japan Airlines on brink of bankruptcy

By on Jan 15, 2010

Carrying the burden of around ¥15 trillion in debt, Japan Airlines is expected to file for bankruptcy as early as next week

Investors whose shares in the Tokyo-based carrier were worth around ¥213 at the beginning of 2009 saw them nose-dive 81% to ¥7 on Wednesday

Should the filing go ahead, Reuters says it will be the sixth biggest bankruptcy in Japan

Nevertheless, a number of airlines are keen to invest in the troubled carrier or a restructured company in order to gain access to its networks in Japan and China

Delta Air Lines and American Airlines have made rival offers, with American Airlines joining forces with fellow OneWorld members British Airways, Qantas and Cathay Pacific, to offer an investment of $14 billion plus a guaranteed $2 billion in revenue for the next three years to keep JAL in the alliance