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Airline given government support

Published on 4 Jan 2010 under category: legal

A major aviation firm has been given financial support amid fears that it could be set for bankruptcy.

Japan Airlines has been given £1.3 billion in state-funded credit, representing a doubling in the amount of government aid given to the carrier.

The news resulted in a surge in the firm's share price, rising by around 30 per cent after double digit falls in recent weeks.

Haruka Nishimatsu, president of Japan Airlines, recently commented that the company would suffer if it went into bankruptcy

He suggested that doing so would result in the shedding of customers due to a loss of recognition for the carrier.

The airline is thought to be hoping for a bail-out deal with the Enterprise Turnaround Initiative Corporation of Japan, with a decision on any potential agreement thought to be set to come later this month.

Japan Airlines is the country's national carrier and operates flights to 103 destinations all over the world.

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