Japan Airlines (JAL) was offered US$1 billion financial lifeline yesterday from Delta Air Lines and its SkyTeam alliance partners, after Tokyo refused to rule out allowing the carrier to go bankrupt.
Delta said the rescue package on the table included a US$500 million equity injection, a revenue guarantee worth US$300 million and US$200 million in asset-backed funding.
The US carrier is seeking to lure JAL away from the rival Oneworld airline grouping and American Airlines, which is also seeking a tie-up with JAL, eyeing its lucrative Asian landing slots.
The offer came as shares in JAL plunged to an all-time low after the Japanese government said that bankruptcy was still a possibility for the airline, which lost US$1.5 billion in the six months to September.
“I have never said the government would not allow bankruptcy protection” for JAL, Japanese Transport Minister Seiji Maehara told a parliamentary panel.
Rather, the government wanted to ensure it did not “collapse and disappear,” he said.
Bankruptcy protection can enable a company to restructure its debts with creditors and implement other measures to emerge stronger, as seen with ailing US auto giant General Motors earlier this year.
JAL, Asia’s largest carrier, is seeking an injection of public funds to boost its capital as it restructures under the supervision of a government-backed turnaround body.
It is also set to receive an emergency loan from a state-backed lender.
The airline last week reported a massive net loss of ¥131.2 billion (US$1.5 billion) for the fiscal first half to September, scrapping its forecasts for the rest of the year because of the uncertain outlook.
JAL plans thousands of job cuts and a drastic reduction in routes.
Taiwan last night blanked world No. 1 Japan 4-0 to win the World Baseball Softball Confederation’s (WBSC) Premier12 for the first time. Taiwanese ace Lin Yu-min (林昱珉) held defending champions Japan to just one hit and no runs in the first four innings, before catcher Lin Chia-cheng (林家正) opened the fifth inning with a solo home run. That was soon followed by a three-run homer from Taiwanese captain Chen Chieh-hsien (陳傑憲) to put Taiwan ahead in the prestigious tournament of the world’s top 12 baseball teams. In addition to a superb performance from 21-year-old Arizona Diamondbacks prospect Lin, three more Taiwanese pitchers
Taiwan yesterday advanced to the gold medal match of the World Baseball Softball Confederation’s (WBSC) Premier12 for the first time in history, despite last night losing 9-6 to Japan. Taiwan advanced after the US defeated Venezuela in the first game on the last day of the Super Round. However, the US had no chance of advancing to the championship game unless it defeated Venezuela by at least nine points. The US won 6-5. As a result, the two teams — who both had one win and two losses in the Super Round — are to face off again in the
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, yesterday held an equipment installation ceremony for its first 2-nanometer fab in Kaohsiung, six months ahead of schedule, Kaohsiung Mayor Chen Chi-mai (陳其邁) said. “To cope with the strong global demand for advanced chips, TSMC is to start moving in equipment for its first-ever 2-nanometer fab half a year earlier than scheduled,” Chen said at an question-and-answer session at the Kaohsiung City Council. TSMC’s 2-nanometer process technology would help accelerate the development of artificial intelligence (AI) applications as well as the transformation of local industries in Kaohsiung, Chen said in a
TEAM TAIWAN: While lawmakers proposed declaring Nov. 24 a national day, the CPBL commissioner urged the legislature to pass the budget for sports development Lawmakers yesterday proposed designating Nov. 24 as National Baseball Day and updating the design of the NT$500 bill to honor the national team’s victory in the World Baseball Softball Confederation’s Premier12 championship on Sunday, as thousands of fans came out to see the players parade down the streets of Taipei. Players, coaches and staff from the national team returned home on Monday night after achieving their best-ever performance in an international baseball tournament. After receiving a rapturous welcome at the airport, the players turned out yesterday for a street parade in front of thousands of adoring fans waving Taiwanese flags and
RSS