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JAL ‘heading for disaster’ after a plunge of 25%
16 Oct 2009There were fears today that Japan Airlines is set to become a General Motors of the skies after its shares collapsed more than 10% overnight to a seven-year low, down more than 25% on the week.
JAL, which has been the subject of speculation that it could be rescued by ally airlines like British Airways, has asked for a £4 billion bailout.
However, investors fear that JAL may simply be deserted by investors for the Tokyo government to sort out.
“There's increasing concern about the future of the company and whether it's heading for a
GM-style bankruptcy or not,” said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management.
