Now that it has filed for bankruptcy under the Corporate Rehabilitation Law, Japan Airlines Corp. closes a chapter in its history and opens a new one — a mission to turn itself around under court-led rehabilitation.
It will be good for JAL to drastically cut costs and start fresh. Its rehabilitation under Enterprise Turnaround Initiative Corp. of Japan should progress carefully and follow a sound growth strategy, industry observers said, although the strategy remains unclear at this point.
Bankruptcy not only signals a turning point for JAL but also for Japan's aviation policy, as JAL management was heavily intertwined with the government, the observers said.