Japan Airlines, one of the Asia biggest corporations, filed for bankruptcy protection with debt amounted to $26 billion which makes this the largest 
bankruptcy in Japan’s history outside the financial sector (USA Today, 2010). Despite of the fact that the Government will give loans and cash up to $10 billion to support its operations, JAL will not only shed a third of its staff, but also cut 31 flight routes both domestic and international in three-year time (Economist, 2010). Moreover, this bankruptcy might show a direct impact to the members of Oneworld Airline Alliance, including British Airways (Times Newspapers Ltd., 2010).
The JAL shares has fallen more than 90 percent since the market was first open after New Year which makes the market value of JAL is approximately $150 million (Thomson Reuters, 2010). Even though JAL is now worth less than one Boeing 747, According to USA Today American and Delta Airlines still want to not only partner with JAL but also plan to invest up to $2 billion in both loans and cash. This leaves a big question why would the two largest U.S. carries invest such a big amount of money?
bankruptcy in Japan’s history outside the financial sector (USA Today, 2010). Despite of the fact that the Government will give loans and cash up to $10 billion to support its operations, JAL will not only shed a third of its staff, but also cut 31 flight routes both domestic and international in three-year time (Economist, 2010). Moreover, this bankruptcy might show a direct impact to the members of Oneworld Airline Alliance, including British Airways (Times Newspapers Ltd., 2010).
The JAL shares has fallen more than 90 percent since the market was first open after New Year which makes the market value of JAL is approximately $150 million (Thomson Reuters, 2010). Even though JAL is now worth less than one Boeing 747, According to USA Today American and Delta Airlines still want to not only partner with JAL but also plan to invest up to $2 billion in both loans and cash. This leaves a big question why would the two largest U.S. carries invest such a big amount of money?
