It seems that JAL is edging step by step closer to the edge of its current existence as the Japanese governments will no longer provide any bailouts or extra loans for it as last week – the Finance Minister Hirohisa Fujii said the state would not give the airline any more loans, thus JAL would need to file for the Japanese equivalent of Chapter 11 – with stock becoming worthless.
As we all know, American and Delta are pawing after JAL (with if the rumours to be believed, JAL going with Delta and exiting OneWorld for SkyTeam – unconfirmed as of yet mind)
Its stock value has shrunk 60% this year, with a debt pile of 1.5 trillion yen of debt.
Of course, if it goes to bankruptcy – things get an awful lot complex for everyone – with the Delta/American fund injection really up in the air.
Whilst the staff and travellers will be ultimately affected by this (and the ones who will pay the price if JAL goes belly up), the management have not been lucky at all – and with recent events worldwide not making life easy at all for them.
Put it like this: From this standpoint, if JAL wishes for partnership from American or Delta, it can’t afford to head to bankruptcy unless it was finally pushed…
