Japan Airlines seeks return to stock exchange

Japan Airlines seeks return to stock exchange

Japan Airlines has confirmed it plans to relist its shares later this year on the Tokyo Stock Exchange.

The step is the latest in its battle to recover from a debilitating bankruptcy in 2010.

Announcing its initial public offering plan, JAL – the second largest airline in Japan – confirmed it would see $6.5 billion for the shares.

The carrier was forced to accept a $25 billion government bailout in January 2010 as it battled to overcome a mountain of debt.

JAL has trimmed its staff roster by about a third, while simultaneously axing routes and aircraft.

However, if successful, the listing would again make JAL one of the largest carriers in the world.

Reportedly scheduled for autumn this year, the sale will allow JAL to repay government debts.

Japanese banks Nomura and Daiwa Securities have been hired to lead the listing.

The future remains uncertain however.

JAL recently confirmed it would enter the low-cost sector Jetstar Japan, alongside Qantas.

This brings the carrier into direct competition with Skymark Airlines and newly announced Singapore Airlines venture Scoop.