Stewast+Lange+9

JAL or Japan Airlines recently declared bankrupcy. This is the largest ever filed bankrupcy by a nonfinancial company. A third of JAL's work force, 15,700 employees, will befired. Thousands of retail shareholders will be wiped out. And bondholders will likely take a fat reduction to their holdings. Employees at JAL's sprawling group subsidiaries in Japan and abroad also will be affected. The airline's restructuring also promises to put pressure on its closest Japanese rival, All Nippon Airways Co. Much like Washington's takeover of General Motors Co., JAL will be aided by a $10 billion lifeline from its government through capital injections and credit Bureaucrats strong-armed Japan's banks, the airline's biggest creditors, into forgiving more than $8 billion of JAL's debt. Retirees and employees accepted more than $11 billion in pension cuts, representing a 30% reduction for retirees and a 50% cut for current employees.Shareholders will be formally wiped out when the stock, once considered one of Japan's bluest of blue chips, is delisted from trading on Feb. 20. At midday Wednesday, JAL shares hit an all-time low of two yen, about two cents, down one yen.

The Wall Street Journal: [] The Seattle Times: []

Both articles covered the topic reallly well. The Wall Street Journal was a bit more descriptive and talked about how much money the Airline was using and losing. However The Seattle Times talked about the planes that they are losing. Otherwise both the articles were very descriptive.

In my opinion This is not very good for the airline buisness as it might cause many more airlines to go bankrupt. Hoever this may be goodfor a few major American Carriers like Delta Airlines and Amereican Airlines who are bidding for Air Japan's routes.