Page last updated at 13:05 GMT, Tuesday, 24 November 2009

Japan Airlines secures more government aid

Japan Airlines plane
The airline is struggling with $15bn of debts

Japan Airlines has announced it has secured government approval for a loan that will allow it to continue flying.

This is the fourth time the troubled carrier has been bailed out by the state-run Development Bank of Japan since 2001.

The airline is struggling with big debts and a large pension fund deficit.

Earlier, shares in the airline slumped almost 9% after one of the country's biggest brokers said it had sold its entire holding in the troubled airline.

Share sell-off

The carrier was only able to secure the loan once it had confirmed to the government that "convenience for users and corporate activities would be significantly affected [without aid]".

The size of the loan was not disclosed but the airline said it had obtained the "funds necessary for the continuation of our flight operations."

Between July and September, Japan Airlines lost 32.3bn yen ($364m; £220m) and is struggling with $15bn of debts.

Along with all major global airlines, it has been hit hard by falling passenger numbers during the downturn.

Shares in the company have fallen by more than a half since the start of the year.

Last week, the airline was offered a $1bn financial lifeline from the Sky Team grouping of airlines, led by Delta Air Lines.

Tuesday's share price slump was sparked by an announcement by Mitsui & Co broking house that it had sold all its shares in the carrier between April and September.



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