Japan Airlines Latest to go Bankrupt

by Jessica MCILHINNEY on January 14, 2010

The global economy has been in a tailspin over the last few years and many countries are still feeling the effects of the prolonged recession.  Although most economies have started to bounce back, there are many industries that were hurt so bad that they may never be able to fully recover.  One such industry is the travel and tourism industry, which includes many parts.  The airline industry had been wounded deeply by the combination of the global recession mixed with the swine flu.  Less money meant fewer people were traveling as a way to cut costs, and the swine flu epidemic scared many into staying home instead of taking a holiday.

These things were not good for airlines, as many had to cut flights, reduce services, or in some cases, shut down altogether.  It has gotten so bad that some travel insurance companies have even started offering their customers the option of coverage that protects them in the case that the airline on which they are traveling goes under during their travels.  The most recent victim is Japan Airlines, which has announced that it will declare bankruptcy, in what will amount to one of the largest bankruptcy cases in the history of Japan.  Not only has Japan Airlines shunned an alliance of capital with US carriers, but they have announced that they will have to cut over fifteen thousand jobs.

Over the next three years Japan Airlines, which is the third biggest airline in Asia, will have to trim its workforce down by more than a third.

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