Air Japan needs government wind beneath its wings
Another in a string of airlines brought to the very edge of extinction by the global recession and wildly swinging demand and fuel prices, Air Japan (JAL) is to be more or less taken over by the new Japanese government. After making a loss of almost $1 billion between April and June this year, JAL decided to lay off 13,000 jobs and embark on an austerity drive. Even that was not enough and, after it failed to secure refinancing, JAL had not much choice but to ask the Japanese government for help. As a result, The Enterprise Turnaround Initiative Corporation of Japan will probably take over this week. It is expected to send turnaround specialists to help JAL restructure its operations. It ain't pretty, that much is sure. Read more: BBC News
