JAL Diary: Day 1, Doraemon Plane, Day 4, Bankruptcy

Topic started by gia on Jan. 19, 2010. Last post by gia 4 years, 8 months ago.
Post by gia (3,032 posts) See mini bio Level 13

I caught word on CNN this morning that Japan Airlines-- the same company that just launched its own Doraemon airplane not four days ago --has just filed for bankruptcy today.

According to the CNN report (and subsequent reports like this one), JAL has filed for bankruptcy with a $25 billion debt. The company will be permitted to continue operation while it reorganizes, but is being wiped out of the Tokyo Stock Exchange, which I believe royally screws stockholders.

Delta and American Airlines are reportedly still in talks to form an alliance, with Delta specifically saying that they "fully spport" JAL and are "ready to provide assistance and support." Hey, if that meant cheaper flights to Narita I'd be thrilled...but for now I think I'll just wait and see.
 
...And fantasize about $500 airfares to Japan. Mmm, that'd be awesome.
Post by JJOR64 (2,074 posts) See mini bio Level 16
That's not good.  An airline going in bankruptcy is no bueno.  Also, where is my Flying Nimbus plane at?
Post by HSaabedra (136 posts) See mini bio Level 4
JAL was long overdue for bankruptcy anyway, being propped up by the LDP for years and years and letting their liabilities grow to an unmanageable level.  What also didn't help them were the incredibly expensive domestic routes forced on them by the Japanese government as a result of its privatization agreement signed in the 80's.
Post by Addfwyn (408 posts) See mini bio Level 16
Anyone know how this will affect ANA and their airfare, if at all?  I tend to fly on ANA when I go to Japan, and since I'm going back soon, I need to know if I should rush on my tickets or not.
Post by John_Martone (2,992 posts) See mini bio Level 10
@Addfwyn said:
" Anyone know how this will affect ANA and their airfare, if at all?  I tend to fly on ANA when I go to Japan, and since I'm going back soon, I need to know if I should rush on my tickets or not. "
Well, that is a logical concern, though I think they might stay the same. I mean, there are still competing airlines, and unless they all decided to raise their rates immediately, it wouldn't stand. Plus, given that the bankruptcy of the company naturally windfalls customers to other airlines, they'll already be making an additional profit.
 
Though, in all fairness, if its the kind of sort of airline that offers special discounts, they might not offer as many in the period. Or, alternatively, they might still offer them hoping to attract strong loyalty from stranded JAL loyalists. Basically, I don't think they're going to go up, but they very well might not go down.
Post by gia (3,032 posts) See mini bio Level 13
@Addfwyn:  If anything, fewer competitors usually means higher prices, but as John pointed out, there are still plenty of airlines running flights to Japan, so I doubt it'll have too significant an impact there. It won't be like when both Aloha Airlines and the then almost exclusively Hawaii-running ATA both shut down within days of one another-- and even that price hike was temporary as things settled down.
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