Troubled airline, Japan Airlines, entered a new crisis as it share price fell 24% amid reports that the firm would file for bankruptcy in a bid to rid itself of its crippling debt problems. It is struggling with 1.5 trillion yen of debt (or $16bn) The Japanese government, previously responsible for bailing the airline out before, said in a statement from finance minister Hirohisa Fuji that it would not loan out any more money to the carrier.
This is the latest blow for an airline that has seen problem after problem hit it in recent times – in the past five years, it has made a loss in four and the forecast for next year is again to make another loss. In total, it has been bailed out by the Japanese government four times since 2001.
Whilst there is hope on the horizon of a turnaround – rival carriers American Airlines and Delta have both been interested in purchasing a stake in the company – this may be put at stake if Japan Airlines files for bankruptcy and could cause complications for any potential deal to be struck. It remains to be seen if 2010 is the last year of operation for the airline…
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