Japan Airlines Files for Bankruptcy - TheStreet

Japan Airlines Files for Bankruptcy

Asia's biggest carrier will continue flying during its restructuring.
Author:
Publish date:

Updated from 3:39 a.m. EST

TOKYO (

TheStreet

) -

Japan Airlines

, the biggest airline in Asia, filed for bankruptcy Tuesday.

The airline is expected to continue flying while it restructures.

Despite the airline's troubles, U.S. carriers

Delta

(DAL) - Get Report

and

AMR's

(AMR)

American Airlines still want access to the company's Asian routes, and have said a bankruptcy wouldn't deter them.

Japan Airlines is likely to switch to Delta's SkyTeam alliance from American's Oneworld, according to people familiar with the situation,

Bloomberg

reports.

Enterprise Turnaround Initiative Corp. will assist the airline with its reorganization and provide it with funding throughout the process.

Japan Airlines President Haruka Nishimatsu resigned. New management is expected to be named early next month.

Job cuts at the airline will be of an "appropriate scale," the airline said. Reports say as many as 15,600 workers, or a third of JAL's payroll, would be cut by March 2013, the

Associated Press

reports.

-- Reported by Joseph Woelfel in New York.

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