Japan Airlines is said to be rejecting equity investment offers stemming from US rival carriers Delta and American Airlines and be subjected to state-sponsored restructuring.

Asia’s largest airline is said to be loaded with debts totaling a staggering £10bn.

It is expected that the carrier is likely to officially declare bankruptcy as early as this week, even if the bailout offers from the two American companies still stand.

It plans to file for bankruptcy under a state-­sponsored restructuring scheme that is likely to slim it down and prepare it to renegotiate with its partners.

The Japan Airlines bankruptcy is certain to send ripples across the Oneworld Alliance to which British Airways is a partner airline.

Japanese Government representatives rejected the possibility to accept the offers of equity investment from the rival SkyTeam grouping members American and Delta Airlines before a bankruptcy filing.

They claimed that a new management as well as a new company structure are planned by the Government prior to JAL going ahead with talks with rival carriers over possible tie-ups.

But it’s been revealed that ETIC, the Japanese Government sponsored turnaround fund, could take several months or even years before making a decision.

Subscribe for free and recieve the latest Self-Catering-Breaks news and stories
Filed under Business & Finance, Travel News, World News

• Japan Airlines and Delta strike deal
• No Bankruptcy For Japan Airlines
• Pinnacle Airlines is Looking for Bankruptcy Protection
• Flyglobespan passengers rescue begins
• American Airlines Asks Japan Airlines to Turn Down SkyTeam
• American Airlines Wants Japan Airlines to Stick with Oneworld

This entry was posted on Monday, January 11th, 2010 at 10:00 am and is filed under Business & Finance, Travel News, World News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.