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Monday, March 28, 2011

JAL emerges from bankruptcy but future is still cloudy!

Just a bit of good news. Japan Airlines (JAL) finally emerges from bankruptcy protection today. JAL has procured 254.96 billion yen and made full repayment of the 395.15 billion rehabilitation debts. It will raise 12.7 billion yen through third party allotment of common shared but has no plans for additional financing right now.

Although it finally emerges from bankruptcy, the outlook is still cloudy due to the sharp drop in demand caused by the Tohoku Pacific Earthquake and the nuclear crisis. JAL saw 28% drop in domestic passengers and 25% drop in international ones. While ANA only saw 25% and 15% drop in domestic and international passengers respectively. JAL is hit way harder on international side than ANA :(

Sources:
Nikkei
Bloomberg

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