Shares in the troubled carrier Japan Airlines (JAL) have plunged to a record low of 5 yen (6 cents, 3 pence) ahead of an expected bankruptcy filing.
Bankruptcy is most likely announced on Tuesday, as japan government bailed out from the JAL. Airline filed its losses to 1,5 billion dollars in six months, and it is worth only 150 million dollars. By the way, it is now cheaper than a 747 airplane…
While the turnaround plan backed by the government will see the airline continue to fly, investors in the company are likely to lose most of their money.
The conclusion, if the airline is cheaper than the new jumbo jet, I have a feeling that this might not be the happy end. Not to its owners, new owners and definitely not to the tax payers in Japan.
While the company will continue flying, with the new command, it will not last long when the new owner is in trouble, as long as it is an airline. Stock markets have shown us the fact that once the company is put down, the fenix will not rise again. I would say that kiss goodbye to JAL while you can.
