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’JAL’s kamikaze bankruptcy
It gives new meaning to the word kamikaze… In a move that the FT attributed to “self-inflicted wounds”, Japan Airlines formally nosedived into bankruptcy on Tuesday, filing with the Tokyo District Court for a court-led restructuring as its share price reached the miserable level of Y5.
The upside of an airline collapse: JAL’s shorting bonanza
The spectacular collapse in the share price of Japan Airlines — from Y200 late last year to Y88 on the first trading day of the new year and all the way down to Y7 on Wednesday, hides a tale of both woe and glee.
JAL: Some things don’t stay the same, or do they?
The whole sorry saga of Japan’s foundering national flag carrier, Japan Airlines, is being hailed in some circles for producing at least one change in the arcane workings of Japan’s pseudo-nanny state:
Overnight markets: Up
Asian stocks rose for the fifth time in six days after the US reported its lowest monthly job losses since the recession began, Bloomberg said. Tokyo-based airline JAL rose by the most in seven weeks after the Yomiuri newspaper said the carrier may get a loan guarantee of as much as Y700bn ($7.8bn) from the government.
TPG, American offer JAL $1.1bn
American Airlines said it, Oneworld alliance members and private equity fund TPG would be willing to invest $1.1bn in Japan Airlines to bolster the airline’s finances and prevent it from defecting to a rival alliance,
Tokyo to oversee JAL turnaround
The Japanese government plans to put a state-backed turnaround body in charge of the overhaul of Japan Airlines, underlining the government’s deeper involvement in the process, according to the Nikkei business daily,
JAL weighs break-up
Japan Airlines will consider a breakup of the company along with a range of other options, as the ailing carrier faces pressure from lenders and the government to turn around its operations, reports the WSJ.
American Airlines raises $2.9bn
AMR, the parent of American Airlines, has struck financing accords with GE and Citigroup that will free $2.9bn in cash to help offset a slump in air-travel demand, reports the FT. Shares of the carrier jumped more than 23% on Thursday’s news,
American eyes stake in JAL
American Airlines has told Japan Airlines it would consider an equity investment in its Asian ally as part of a sweeping transpacific JV agreement between the two carriers, in a bid to ward off an approach by Delta Air Lines to the Japanese carrier.