8th Post --- JAL's downfall

Japan Airline has gone Bust.... Could that be ? Asia's Largest carrier out of business ? What has the world come to nowadays ? Are we all in deep trouble ? Are these the signs of our impending doom in 2012 ?

Japan Airlines, Nippon's favourite airline, has filed for bankruptcy protection on January 18, 2010. Mighty Japan looses an airline. Anyway, JAL has been reported to owe more than 25 billion in dept. It will be slashing over 15000 jobs and unprofitable routes.

JAL has been hit hard by industry turbulence unleashed by the 9/11 attack in the United States, the Iraq war and the global financial crisis. Once again, the financial crisis has destroyed another financial giant. The airline is now under state-support. The airline's value has dropped so much that it's stock has been delisted. To make matters worst, the company value is now worth less than a single Boeing 747 aircraft. The bankruptcy is Japan's biggest corporate failure outside the financial sector since World War II, according to Tokyo Shoko Research. "The problem is that the government lacks a clear vision on what to do with JAL's international network, they are focused on assisting JAL" said Yasuhiro Matsumoto, a credit analyst at Shinsei Securities.

The government has announced a 3.3 billion-dollar injection of public funds and emergency loans of 6.6 billion dollars for the airline, which will slash about 15,600 jobs.

The airline is currently trying desperately to clear the loans and selling off their dozens of Boeing 747-400s, claiming that it " Drains fuel ", and switching to "cleaner" airplanes such as the Boeing 767.

" I thought that there was no way JAL could fail " said Akiko Saito.

However, this is good news for Japan's JAL's rival, All Nippon Airways, making it Japan's new flagship carrier. However, JAL could still pose a formidable treat to them if/when they recover from the loans.

Also, eyeing its lucrative Asian landing slots, American carriers such as American Airlines and Delta Air Lines are now bidding for a slice of Japan Airlines.

JAL. Once Asia's largest airline in terms of revenue, reduced to a smoldering, unsalvageable piece of junk. Is this what's to come in the future ? Is this the symptoms of 2012 ? Does this mark the start of turmoils to come ? More importantly, is this the start of the end of the world ?