RENEE MONTAGNE, host:
Japan Airlines filed for bankruptcy yesterday, and it's one of the largest bankruptcies in Japan's history. JAL says it will keep flying, and two U.S. airlines remain interested in partnering with it.
NPR's Adam Hochberg reports.
ADAM HOCHBERG: The Japan Airlines that emerges from bankruptcy will be but a shadow of the company that once symbolized Japanese pride around the world. As part of its effort to erase a $25 billion debt, JAL will slash its flight schedule and lay off about a third of its workforce.
Analyst Richard Aboulafia says JAL adapted slowly to increased competition and to the world economic slowdown. Now, he says, it has to belatedly take steps to survive.
Mr. RICHARD ABOULAFIA (Analyst): They'll stay in business. They're just going to be in a smaller form because of the environment of the past 18 months. They have no choice but to cut capacity drastically.
HOCHBERG: Even in its weakened state, though, JAL still finds itself the target of a competition between two U.S. airlines: Delta and American. Both are seeking marketing partnerships with it.
Brett Snyder, who writes a blog called the Cranky Flier, says JAL has something U.S. airlines desperately need: takeoff and landing slots in Asia.
Mr. BRETT SNYDER (Blog Writer, Cranky Flier): Tokyo is still heavily slot-restricted at both of its airports, and Japan Airlines holds a ton of slots at those airports. So you need to be aligned with them, if youre a U.S. carrier, to create a network.
HOCHBERG: JAL currently is part of American's OneWorld network. But Delta's trying to lure it into the SkyTeam alliance. The U.S. airlines each are offering a billion dollars or more to the ailing Japanese company.
Adam Hochberg, NPR News.