Marking one of the largest collapses in Japanese corporate history, Japan Airlines have today filed for bankruptcy.

JAL in one of Japan's biggest bankruptcy cases

The Japanese airline has sought debt advice in an attempt to reverse the company’s ailing fortunes, with debt problems of around 2.3 trillion Yen.

Plans of restructuring at this iconic airline mean that up to 15,700 jobs may have to go, along with 30 of the airline’s routes.

JAL said that all of its board would resign but that the fleet would still continue to fly on the more profitable routes.

JAL is Asia’s largest airline and the bankruptcy will go down as one of the largest corporate bankruptcies in Japanese history.

Its creditors, which include three Japanese “megabanks”, have said that they will write off debts of around 730 billion Yen – much higher than previously estimated.

The announcement ended weeks of speculation over the airline’s future, after Japan’s new government ruled out an emergency bailout.

The airline will, however, stay in business while it attempts to repair its damaged reputation and return to profitability hopefully before the end of the 2012 financial year.

The Japanese government said it would “provide the necessary support for JAL until the completion of its rehabilitation”.

In a message to shareholders and creditors, JAL apologiesed, saying it wished: “to “sincerely apologise to all of our shareholders, financial creditors, customers and suppliers and other parties concerned for the great inconvenience and concern this situation might cause”.

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