![[PR] PR_Ascott and Vimut Hospital_2024](https://www.traveldailynews.asia/wp-content/uploads/2024/04/PR-PR_Ascott-and-Vimut-Hospital_2024-400x265.jpg)
…
Japanese authorities have thrown a lifeline to the crisis-struck Japan Airlines (JAL), the largest carrier in Asia, by doubling a state-sponsored credit line to £1.33bn.
JAL has been dogged by rumours that it could file for bankruptcy, causing its shares last week to plunge by more than a quarter. The national carrier is heading for its fourth annual loss in five years as a result of the slump in air travel, inefficiency and an unwieldy pension scheme. If it does file for bankruptcy it would be one of the largest failures in Japan’s history.
The ETIC, a state-backed fund established to inject capital into and buy the debt of struggling but viable firms, has told JAL’s main creditors it favours a bankruptcy proceeding as part of its rescue package. The ETIC is expected to ask JAL to cut 9,000 jobs and scrap 45 domestic and international routes in return for capital.
The government in Tokyo asked the Development Bank of Japan to double its existing 100bn yen (£665m) commitment facility to JAL after ministers – including Seiji Maehara, transport minister, and Naoto Kan, deputy prime minister – met for crisis talks to discuss how Tokyo could further support the troubled carrier. JAL has already used up about 55bn yen (£365m) of the facility.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
