Japanese Airlines (jal) In Grave Financial Trouble

[neverdie]

Just saw on the local news that Japanese Airlines is about to go toes up, with a date set for the 19/1/2010.

Aparently they are approaching the Japanese Govt for assistance..

One of the problems that Japanese Airlines has sighted has been substantial losses due to investments in the Bond market.

This may affect some TV members who pesently hold tickets & are expecting to fly with this carrier. Perhaps the Japanese Govt may assist the carrier to stay afloat. Interesting times.

[sabaijai]

Japan isn't part of SE Asia. Moved to Thailand Travel Forum.

[Mosha]

A few airlines/companies waiting in the wings. Delta and AMR the company that owns American airlines

[harrry]

Qantas has annnunced they had to revise its priofit because it had to contribute to a bailout through the alliance they both belong to.

[Nordlys]

I've never read anything about the investment in bond market but JAL has essentially been in the same shoes THAI was in till last month. JAL will be restructured and rehabilitated and as such mileage from frequent flyer's program will be protected but the shareholders are likely to lose everything except some privileges (like free coupons) as JAL will be delisted from Tokyo Stock Exchange. Delta Airline (Northwest) is also offering bailout package worth 1 billion US$ to JAL in exchange of it shifting from One World alliance to Sky Team whereas American Airlines is offering similar deal to keep JAL on its alliance but reports say JAL and the government is inclined toward Delta's offer. I don't think Jan. 19th will see any disruption in JAL's operation but JAL will eventually termite some 14 international flights as well 12 domestic over the next 3 years and its travel agent and tour operator JALPAK and JAL Hotels will likely be liquidated.

Edited January 15, 2010 by Nordlys