Articles tagged “japan airlines”

Everything about this story has been spectacularly big: first the failure, and then the massive turnaround effort into the world's most profitable airlines, and now the IPO, the second biggest IPO this year after Facebook. Superlatives all around.

High demand and an anticipated market could either turn JAL into a success story for bankrupt airlines after its two-year turnaround, or shares could soon fall as competition in the Asian market rises.

Japan Airlines' road to its IPO is paved with very angry former creditors, competitors angry about perceived preferential treatment from the government, and employees who were forced to make concessions.

JAL's turnaround is as much about government assistance as it is smart business. JAL may be pinching pennies, but its reinvention is also owed to massive government loans, debt waivers, tax breaks, and pension cuts for formerly loyal employees.