TPG may land Japan Airlines deal

Japan Airlines is no stranger to hard times having been bailed out by the Japanese government three times since 2001, and currently seeking more state support. The company is struggling with a $15bn debt load and a pension deficit, the report said.

The government aims to arrange a state bank provide bridge loans to stop the airline from running out of money.

Despite its troubles, both American Airlines and Delta Air Lines are looking to gain access to the airline’s market share in Japan.

It is believed that TPG has agreed to potentially invest in Japan Airlines as part of any deal with American Airlines that could go ahead.

TPG has previous experience in the aviation industry, helping Continental Airlines emerge from bankruptcy in 1993 and backing a failed takeover attempt for Australia’s Qantas Airways in 2007.

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