Japan Airlines soars as Development Bank doubles credit

Japan Airlines Corp has seen shares surge in Tokyo trading after the government and state-run Development Bank of Japan doubled an existing credit line to 200 billion yen ($2.2 billion)

By Ellie Duncan | Mon Jan 4, 2010

Shares in Asia's largest carrier soared over 30 percent, its biggest jump in over seven years, despite doubts about the airline's future.
Transport Minister Seiji Maehara and other government officials asked the Development Bank of Japan to boost the credit line, its fourth emergency loan to the carrier since 2001.
According to Maehara, JAL has used over half of that 100 billion yen facility.
However, there are concerns that the airline may be forced to file for bankruptcy protection. Analysts believe the credit line is merely a short-term solution to JAL's continuing problems.
Restructuring plans are underway, and there are reports that these could result in the carrier joining either Delta Air Lines or American Airlines in the not too distant future.
Edited by Jennifer Denby
For more information, visit http://www.uk.jal.com/en/aboutjal/