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Airline hit by bankruptcy fears

Published on 12 Jan 2010 under category: legal

A major airline has seen its share price dip due to fears of bankruptcy.

Japan Airlines has been the subject of rumours regarding financial concerns for several months.

However, shares fell by 45 per cent this week as a deadline for a pension cut agreement nears.

The carrier has until today (January 12th) to finalise a deal which would see its multibillion dollar retirement fund deficit reduced.

It is thought that the current shortfall is around $3.6 billion (£2.2 billion).

The carrier, which is reported to have debts of around $16 billion, is thought to be the subject of interest from several other companies, including American Airlines.

Japan Airlines, which was founded in 1951 and launched its first service later that year, is the national carrier for Japan.

The firm currently offers flights to more than 100 destinations, including those in the UK, US, France, Germany, Italy, Australia and India.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.