Japan Airlines said Nov. 24 it obtained government approval to receive up to $1.1 billion in emergency loans aimed at preventing the money-losing company from grounding flights, reported the Associated Press. JAL signed an agreement with the state-run Development Bank of Japan after receiving government approval, a company official said on condition of anonymity, citing policy. Asia’s largest airline has pressed for a government bailout and mulled over massive job cuts and other restructuring steps to avoid collapse. JAL shares tumbled 8.4 percent to a record low amid worries over a possible bankruptcy. The transport ministry authorized the airline’s application for the loans after confirming “an event which would interfere with our flight operations could occur,” in which “convenience for users and corporate activities would be significantly affected.” The airline obtained government approval for separate loans of 25 billion yen ($282.2 million) for necessary aircraft imports. Struggling JAL booked $1.5 billion in losses in the first half of the fiscal year, and faces interest-bearing debt totaling nearly $10 billion. JAL President Haruka Nishimatsu has said he will make a decision on the offer by the end of the year.
