Is Japan Airlines just hours away from bankruptcy?
Shares in Japan Airlines have fallen further today as the reality of the company's financial situation continues to hit home with investors. Having fallen to a record low equivalent to 26p a share it is believed the company is just hours away from an official bankruptcy ruling which will transfer ownership of the company to a state owned turnaround venture. But is this the end of Japan Airlines?
Despite the fact that the company is rumoured to have around $16 billion in borrowings and facing an ever more difficult trading environment it is believed the company will continue to trade. The government has promised support for the company if it agrees to a significant reduction in the size of the operation which could result in over 15,000 job losses. It is also believed the company will be asked to jettison unprofitable routes and focus upon those which are profitable and have the potential for growth in the future.
The airline is expected to announce record losses of $265 billion for the year ended March 2010 which is certain to send shockwaves around the airline industry. Whether we see a domino effect across the sector remains to be seen but the fragile nature of many airline company finances will no doubt be brought to the fore again.
Share this..
Related stories
Co-op Set To Capture Somerfield For £1.6 Billion
In a move which will push the Co-operative movement back into the big league, rumours are swirling around the City that the company is set to announce the £1.6 billion acquisition of the Somerfield group. Somerfield was recently taken private by a group of venture capital investors and well known property tycoon Robert Tchenguiz in a £1.1 billion buy-out.
After restructuring th...
UK car manufacturers barred from direct Bank of England funding
It has been revealed that regulations currently in place are preventing the UK car industry from obtaining funding direct from the Bank of England. This little-known regulation could well scupper the eventual recovery of the sector even though the government announced a separate £2.3 billion package yesterday. As Toyota joined the list of car manufacturers in the UK looking to reduce their cost b...
Read MoreOnline chatrooms in court battle
Nighthawk Energy, an AIM listed company, has today revealed a successful court battle against chatroom companies ADVFN and iii to force the companies to divulge the identity of certain individuals posting alleged "damaging information" online. The company believes it has been the victim of unscrupulous rumours which may or may not have damaged the reputation of Nighthawk Energy. So what does the c...
Read MoreBookmakers set to prosper in difficult times
While we have seen the banking sector under severe pressure, retailers on the high street cutting back on costs and many sportswear companies feeling the pinch, is there really anywhere in UK economy which is safe?
While not to say that the bookmaking sector has not been impacted by the downturn, it appears that more and more UK gamblers are enjoying a flutter even in these difficul...
Have Royal Bank shares been oversold?
A report from Exane BNP Paribas today sheds a whole new light on Royal Bank of Scotland with the broker expressing an opinion that the shares have been oversold after being ignored by many during 2009. The broker believes that things can only get better for Royal Bank of Scotland in 2010 and while a planned disposal in Pakistan has collapsed due to regulatory issues it appears that investors are n...
Read More