Japan Airlines Corp., together with its two key subsidiaries — Japan Airlines International Co. and JAL Capital Co. — filed for bankruptcy protection Tuesday with the Tokyo District Court under the Corporate Rehabilitation Law. The group's combined liabilities of ¥2.32 trillion amount to the biggest nonfinancial corporate failure in Japan's postwar history.
The Hatoyama administration apparently opted for the court-led rehabilitation procedure, which ensures transparency, to demonstrate its departure from the days of Liberal Democratic Party rule, when JAL overcame difficulty after securing the cooperation of banks in a rather opaque process.
Transport Minister Seiji Maehara said, "Today is the starting point for JAL's revival." The rehabilitation procedure is the last chance for the flag carrier's survival and revival.