Japan Airlines to file for bankruptcy protection-15,000 Workers Face Layoffs
Japan Airlines to file for bankruptcy protection
http://news.bbc.co.uk/2/hi/business/8466997.stm
Page last updated at 05:34 GMT, Tuesday, 19 January 2010
Japan Airlines to file for bankruptcy protection
The company has lost billions in market value over the past week
Japan Airlines (JAL), Asia's biggest air carrier, is due to file for bankruptcy protection, reports say.
JAL - which has $16.5bn (£10bn) of debts - is expected to make the move after a board meeting later on Tuesday.
JAL shares fell to an all-time low on Monday, valuing the firm at just $150m - roughly the price of a new jumbo jet.
Japan's government says flights will continue as normal as JAL begins restructuring under the supervision of a state-backed turnaround organisation.
A third of JAL's workforce - more than 15,000 people - are expected to lose their jobs, the BBC's Roland Buerk in Tokyo says.
Banks will have to write off unsecured debt and JAL will receive an injection of taxpayers' money, our correspondent adds.
While the turnaround plan backed by the government will see the airline continue to fly, investors in the company are likely to lose most of their money.
Along with other major global airlines, JAL has been hit hard by falling passenger numbers during the global downturn.