Bridge Loans Keep JAL Flying

[straitman]

A state bank will tide Japan Airlines over with bridge loans to keep it running until it is permanently restructured financially and operationally.

The government says it will arrange the loan, although it does not say how much money will be extended. The short-term financing has been expected, since the government has previously said that Japan Airlines is too big to fail.

Legislation to force a cut in Japan Airlines' pension payments will also be considered.

Bridge Loans Keep JAL Flying

 

[fortymilliondaggers]

Pensions - a hangover from the 'good old days' - are a major worry for many of the world's airlines.

GM fell over partially because of pension liabilities. No such thing as too big to fail...

 

[bambbbam2]

Thanks. Just reading more here
Japan Airlines posts $1.5 billion first-half loss - AOL Money & Finance

"TOKYO -Japan Airlines said Friday it racked up a $1.5 billion loss and was seeking government help to fend off creditors as the beleaguered carrier struggles to recover from the travel industry's deepest slump in years."

 

[fortymilliondaggers]

I don't tink they'll be recovering personally. More good moeny after bad.

 

[drron]

As I reported in another thread this was all through the Tokyo papers 2 weeks ago.Basically the government will be taking over JAL for 3 years,passing a law reducing pension benefits then having it recapitalised-still ?Delta,?AA.