One of the worst kept secrets in the airline industry came
to fruition yesterday as Japan Airlines filed for bankruptcy.

JAL is 2.32 trillion yen, or $25.5 billion, in
debt. Financial experts in Tokyo
expect that lenders will recover only 20 percent of the money owed.

In one of the worst financial disasters in Japanese history,
JAL went from being a shining star for the country to a complete and utter embarrassment.

How bad is Japan Airlines these days? The company’s stock
plummeted upon the news of the bankruptcy news that the airline is now worth
only $150 million dollars – about the price of one Boeing 787. Ouch.

In order to help pay back some of their debt, JAL is
expected to sell most of its older 747s and 767s.

The recent bidding war between Delta and American for
partnership with the troubled airline had little to do with actually working
side by side with JAL, but more about claiming precious Asia
routes.

Still no deal has been set in stone yet with either of the
two U.S.
carriers.

Source: Reuters

Flickr: mikecogh