JAL to apply for bankruptcy protection will lay off One-third

The Asia's biggest airline, Japan Airlines, filed for bankruptcy protection in Tokyo's District Court yesterday as the sixth largest bankruptcy in Japan, according to a comprehensive report on CBN.　　It is reported that JAL will lay off more than 15,000 people in the next three years, accounting for about One-third of the current total number of employees.　　A Japanese government spokesman said JAL would complete the restructuring by cutting its debt with the support of Japan's Corporate Regeneration Support Agency (Enterprise Turnaround Initiative Corp.), abandoning its loss-making business and acquiring new investment. Japan's cabinet chief, the head of the building, was briefed on the decision yesterday in Tokyo.　　The government also said the airline, which had flown at least 45 million passengers last year, would continue its operations. The restructuring came as global travel demand slipped and the country faced competition from Nippon Airways and bullet trains, which had a loss of 131 billion trillion yen (1.45 billion U.S. dollars) in the first half of last year. The flagship Japanese airline, founded in 1951, received 4 government bailouts in 9 years.　　Now, the 4-month-old government, led by Yukio Hatoyama, Japan's prime minister, is ending its unconditional support for JAL's restructuring. The government-affiliated Japanese Enterprise recycling program says the recycling program includes continuing to pay for manufacturers and aircraft leasing companies while maintaining the airline's frequent flyer program.　　JAL will receive at least 900 billion yen (10 billion U.S. dollars) of loans and new funds from etic and the Japanese bank. The world's two largest airlines, US airlines and American Airlines are scrambling to inject money into JAL's or Nirvana's JAL to share the latter's routes in Japan and China. Both companies said JAL's bankruptcy would not stop them.　　and two sources have previously said that JAL or will be from the United States airlines in the Universal Alliance "transfer" to the United States Air Alliance. Delta Airlines said the alliance will fully support JAL's restructuring and is willing to provide assistance to JAL in any way.　　If allied with Danone, JAL may gain 17 billion yen a year. The 77-Year-old Rice Inamori will be the new chairman and CEO of JAL, in charge of restructuring matters. He is a Japanese Kyocera company (Kyocera Corp.　　) founder. Big layoffs Meanwhile, JAL will lay off more than 15,000 people in the next three years, accounting for about One-third of the current workforce.　　JAL will also cancel more than 20 loss routes and reduce the existing 110 subsidiaries to 57, and also plans to sell subsidiaries such as Hotel Nikko. The honorary chairman of Japan's Kyocera Company, Rice Inamori, will be appointed chief executive to oversee the restructuring of JAL.　　Thanks to JAL's current total debt of $16.5 billion trillion and a large business scope, coupled with rising oil prices, falling passenger numbers and heavy restructuring costs, the return to profitability is a long way off. JAL stock is a handful of scrap paper after a frantic sell-off by investors. At present JAL'sThe market capitalisation is just 150 million dollars, roughly the equivalent of a jumbo jet. The Japanese government says JAL will operate as usual after restructuring under the supervision of Japan's corporate transition project.　　Banks are expected to have to write off unsecured debt in the future, and JAL will receive a taxpayer injection. While the government-backed restructuring plan will ensure that JAL continues to operate, investors are likely to lose most of their wealth.