Japan Airlines (JAL) has completed its corporate reorganisation just as concern over radioactive hazards causes demand to soften.
The carrier filed for bankruptcy protection in January 2010.
Under its rehabilitation plan that gained court approval in December, JAL's creditors agreed to forgive ¥521.5 billion ($6.3 billion) in debt while the Enterprise Turnaround Initiative Corporation gave the carrier a ¥350 billion injection and gained 175 million new shares in the carrier. JAL says with approval from the Tokyo District Court it has procured ¥255 billion from 11 financial institutions, and has repaid all its reorganisation claims.
During its reorganisation JAL stated it was retiring 103 aircraft, including the phase out of its Boeing 747s, Airbus A300-600s, MD81s and MD90s.
JAL also plans to cut capacity on some its international routes from 6 April through 27 April as demand decreases in the aftermath of the 11 March earthquake that triggered a tsunami and damaged nuclear reactors at the Fukushima nuclear power plant.
JAL plans to reduce 74 weekly flights on a total of 11 international routes, and says it is down-gauging from 767-300ERs operated from Narita to Guam to 737-800s and is using 777-300ERs flown from Narita to Nagoya Chubu instead of 767-300ERs.