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JAL's net negative worth exceeds USD10.7bn; seeks new financial aid and debt waivers

1-Jul-2010 10:25 AM

Japan Airlines Corp stated it would commence talks with a group of banks, requesting additional financial aid and debt waivers to liquidate its capital deficit (Kyodo/AFP, 30-Jun-2010). JAL's total liabilities exceed its assets by approximately JPY950 billion (USD10.7 billion), approximately JPY100 billion more than in Jan-2010. Enterprise Turnaround Initiative Corp of Japan (ETIC) on 30-Jun-2010 submitted to the Tokyo District Court balance sheets for the company and its two subsidiaries after an evaluation of their assets. The three firms' liabilities exceed their assets by more than JPY1 trillion (USD11.3 billion). The figure has increased due to costs involved in a "re-evaluation of our assets and strict review of our flight routes". Meanwhile, JAL stated it has decided to close its pilot training facility in California by the end of the current fiscal year and freeze its pilot training programme.