Government ends support for ailing carrier
Japan Airlines (JAL) could be declared bankrupt this week, according to news reports in the Far East.
The ailing carrier, which is believed to be hemorrhaging millions of pounds everyday, has suffered financial difficulties for more than a decade but has been propped up by the Japanese government.
But prime minister Yukio Hatoyama has decided the state can no longer bail out the troubled carrier. Administrators were expected to be called in before the weekend.
British Airways said it was too early to comment on the potential situation facing JAL customers on its rival Heathrow - Tokyo service, though ABTN understands the airline could be in a position to help stranded passengers if required, depending on load factors and available aircraft.
North American airlines Delta and Oneworld alliance partner American Airlines have both made attempts to bail out the Japanese flag-carrier in recent months, but any such deals will be on ice until the company undergoes a period of restructure.
Both Delta and America have stated that JAL's financial turmoil has not dissuaded them from seeking a tie-up in the future.
JAL