JAL falls into bankruptcy

Carrier ponders SkyTeam move

Troubled carrier Japan Airlines (JAL) has filed for bankruptcy after weeks of speculation surrounding its future.

According to reports in the Far East some 15,000 people will be made redundant as part of a restructure by administrators. Existing board members were expected to resign.

The state-backed Enterprise Turnaround Initiative Corporation is to inject up to £2 billion. Politicians and company bosses have stressed the impending restructure will not affect the airline's services.

JAL flies one daily flight to Tokyo. Fellow oneworld partner British Airways also has one daily flight, though the airlines do not code share. Virgin Atlantic and ANA also service the route.

ABTN sources said JAL was also close to withdrawing from the BA-led alliance Oneworld.

The Japanese government is believed to favour a move to SkyTeam with suitors Delta Air Lines, though experts say it could be moths before a decision is made.

A Delta statement read: "Delta and Skyteam fully support Japan Airlines and stand ready to provide assistance and support in any way possible.

"Delta fully expects that JAL, with the support of ETIC, will be successful in its restructuring and return the airline to a position of prominence."

However, oneworld has denied JAL is set to jump ship and moved to reassure the industry with a statement this afternoon.

"The airline continues to offer full oneworld services and benefits, and tickets for flights on JAL and its frequent flyer arrangements are unaffected, with JAL reassuring its passengers that they will continue to receive the same high levels of service and safety.

"Oneworld and its other member airlines have offered JAL all possible support through these difficult times and into the future.

JAL shares have fallen to an all-time low, valuing the firm at just $150m - less than the price of a new jumbo jet.

The Tokyo stock exchange said shares in the carrier would be delisted on 20 February.

www.jal.com