Japan Airlines files for bankruptcy

However, the airline, founded in 1951, will stay in business. The government-backed Enterprise Turnaround Initiative Corp. of Japan will inject 300 billion yen ($3.3 billion) into JAL and the state-backed Development Bank of Japan will provide the carrier with a 600 billion yen ($ 6.593 billion) credit line.

"The government wants to continue to support JAL to ensure its continued stable and safe operation," the Japanese transport minister, Seiji Maehara, said.

The company's debt is estimated at about $25 billion. JAL will ask for a debt-waiver worth 730 billion yen ($8.05 billion) on a group basis. By March 2013, the carrier is expected to cut 15,000 jobs - one-third of its workforce - and shut down 53 of its 110 companies. It will also cut unprofitable routes and replace ageing planes to keep afloat and be able to post a profit of 115.7 billion yen ($1.27 billion) in the fiscal year ending in March 2012.

American Airlines has made an offer to JAL to invest $1.4 billion in it or in a restructured company to access routes in China and Japan. However, JAL is likely to accept a rival offer from Delta's SkyTeam, worth about $1 billion; Kazinform cites RIA Novosti. See www.en.rian.ru for full version.