Japan Gov't Favors JAL Bankruptcy, Rejecting AA & DL

[Matt Molnar]

Flightglobal:

Govt leaning towards bankruptcy for JAL
By Leithen Francis

Japan's Government is in favour of Japan Airlines (JAL) entering bankruptcy, and will likely reject offers of financial aid from American Airlines and Delta Air Lines, say Japanese media reports.

[hiss srq]

I am not suprised. To the Japanese it would make them look weak on the world stage and everything is pride and self sufficency to them. For an outsider to come in and bail them out would be against the culture of Japan.

[Matt Molnar]

AP:

Reports: JAL to cut 15,600 jobs, reject cash bids

30 mins ago

TOKYO – Troubled Japan Airlines Corp. is set to cut about 15,600 jobs, a third of its work force, and reject billion-dollar cash offers from Delta and American Airlines, as it files for bankruptcy and embarks on a government-led turnaround, reports said Monday.

Under a rehabilitation plan now being hammered out by a state-backed corporate turnaround body, JAL would make the job cuts during the three fiscal years through March 2013, Kyodo News reported. The plan would include a fresh investment of 300 billion yen ($3.3 billion) by the body and wipe much of its soaring debts under bankruptcy protection.

[Matt Molnar]

UPDATE: The consortium led by AA and TPG have raised their offer to $1.4 billion, with revenue guarantees worth up to $2 billion over the next three years.

http://www.bloomberg.com/apps/news?pid= ... fnMI&pos=2

[NLovis]

Well thats good for one world but bad for JAL. I have a feeling we wont be seeing them at JFK anymore.