ANNOUNCEMENT 24 Sep 2009In September 2009, the government of Japan announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
Japan's government statement:
On September 24, 2009 the Japan Airlines (JAL) asked the Japanese government for a bailout. The initial reaction of government on the bailout option was negative and a split up of the company is also one of the possibilities discussed. On September 30, 2009 the government declared itself ready to support the company and a government panel was set up to decide on the details. It would have been the fourth bailout since 2001; the three smaller ones amounted in total to Yen 274 billion invested by the state-supported Development Bank of Japan and some other banks. Additionally, very recently, in June 2009 JAL received Yen 100 bn loan backed by government guarantees. Unlike previous bailouts, the government will take a stake in the company. At the end of October 2009 the government decided to supply Japan Airlines with a bailout worth Yen 550 billion split almost evenly between new equity and debt waivers. JAL's restructuring plan involves cutting 6800 jobs until 2011, 14% of labor force, reduce liabilities to worker's pensions and resign from some of domestic and international routes.