Japan Airline in dire state.

Japan Airlines Corporation is near to bankruptcy.

Requested an injection of public funds from the Enterprise Turnaround Initiative Corp. of Japan, a corporate rehabilitation agency set up by the public and private sectors.

If the application is accepted, the agency will attempt to help rebuild its operations within three years.The agency is expected to become a major shareholder by investing hundreds of billions of yen in the airline, and to send in a new management team to oversee the rehabilitation.

JAL's debts rationalisation:

1) have exceeded its assets by at least 250 billion yen

2) the airline needs to bolster its capital by 300 billion yen by the end of March,.

3) suggested JAL's creditor banks write off debts worth 220 billion yen and convert debts worth 30 billion yen into company shares.

4) The plan called for JAL to shed about 9,000 employees from its group workforce of 48,000 and scrap 45 routes, or more than 10 percent of its domestic and international routes.

5) The government will consider lowering airport landing fees, among other measures designed to ease the financial burden on the company and guaranteeing 180 billion yen in bridge loans from the Development Bank of Japan that JAL needs to secure by the end of November.

6) it will consider enacting legislation to forcibly reduce pension benefits to JAL retirees due to criticism of the use public funds to rescue the company.

Shares in the airline slid to 60 yen at one point, the lowest level since JAL merged with Japan Air System Co. in 2002. They ended the day down 23.9 percent at 67 yen, after an 8.3 percent dive on Tuesday'

Japan Airlines (JAL), the country's premier air carrier is another "too big to fail" entity.

A national icon that has fallen on hard times, not just buffeted by cruel economic circumstances but by its own missteps and generous pensions.

American Airlines announced late last week that it might team up with private equity firm TPG to invest some US$300 million in JAL. The two airlines are members of the Oneworld aviation alliance; teaming with Delta would require JAL switching to SkyTeam, a costly and complicated transition. Delta said on Wednesday that it and partners in the SkyTeam alliance were prepared to offer JAL a support package totaling US$1 billion in investment, revenue guarantees and financing, Reuters reported.

Tracking the Dow Wednesday,30/12/09

9:30am:--Bearish 30.0 points gap down spillover from overnight action.

10:30am:--Retracement short-covering filling the open gap reaching session high with bearish evening stars.

11:30am:--Another pullback breaching the MAV support line.Morning stars formed by the spinning bullish doji.

12:30noon:--Another short-covering bringing to near day's high.Bears inturn spike it down again.

1:30pm:--At the MAV supporting line again with short-covering.

2:30pm:--Indicies holding near the bull pivot with dragonfly dojis.

3:30pm:--Pullback again to the MAV support line for the second time.

4:00pm:--Strong ascending bulls ended the day.

The absence of many meaningful news items and the fact that many trading desks are thinly staffed ahead of the New Year's holiday has a resultant thin trading volume with the short-sellers having a pre-New Year Day holiday party.

They can easily manipulate the market and cause these choppiness.

Stronger-than-expected report on Midwest U.S. business activity was offset by investors taking profits.

The U.S. dollar hit a three-month high(92.4450) against the yen on year-end flows in thin trade and the belief that the U.S. economy is on the road to recovery.