Japan Airlines enters bankruptcy, ANA loses ground on “unfair competition” concerns
Japan Airlines' shares closed flat at JPY5 per share yesterday as the airline announced as expected, after the market close, that it would file for bankruptcy. JAL shares will be delisted on 20-Feb-2010.
The Nikkei ended down 0.83%, or 90.18 points, at 10,764.90, yesterday, with All Nippon Airways dropping 4.2%, as it expressed concern that JAL's bankruptcy protection will result in the an "unfair competitive environment" in Japan. ANA stated, "we believe it is important to secure customer convenience by the injection of public funding, however, we are also highly concerned that the fair and competitive environment would not be secured under the financial support and injection of public funding".
See related report: Japan Airlines bankrupt, Tiger Airways IPOs; a sign of the changing times
Elsewhere, Korean Air added 3.2% yesterday. Hong Kong's benchmark index rose 1.0% yesterday, with Cathay Pacific advancing 1.4%.
For a full wrap of JAL's bankruptcy, and ongoing daily coverage of its restructuring process, including details of route and network changes, subscribe now to Asia Pacific Airline Daily.
Asia Pacific selected airlines daily share price movements (% change): 19-Jan-2010
Source: Centre for Asia Pacific Aviation & Reuters