Japan Airlines files for bankruptcy protection

Japan Airlines filed for bankruptcy Tuesday in one of the nation's biggest corporate failures ever, entering a restructuring that will shrink Asia's top carrier and its presence around the world.

Staggering under a $25.6 billion debt mountain, the carrier applied for protection from creditors under the Corporate Rehabilitation Law with the Tokyo District Court.

A state-backed turnaround agency pledged 900 billion yen ($10 billion) in financial support for JAL.

"This is not the end of JAL," transport minister Seiji Maehara told reporters. "Today is the beginning of a process to keep JAL alive."

JAL President Haruka Nishimatsu resigned, bowing deeply as he apologized for the company's troubles. "This is our last chance," Nishimatsu said. "I believe we can be reborn as an airline that can represent Japan again."

JAL said flights will continue uninterrupted and that frequent fliers would not lose their miles. Tokyo asked foreign governments for cooperation to keep JAL flying around the world.

The day's events culminate a process that began in October when JAL — saddled with debts of 2.32 trillion yen ($25.6 billion) — first turned to the Enterprise Turnaround Initiative Corp. of Japan for help.

The reorganization plan anticipates dismissal of 15,661 workers — a third of JAL's payroll.

The bankruptcy represents a humbling outcome for Japan's once-proud flagship carrier which was founded in 1951 and came to symbolize the country's rapid economic growth. The state-owned airline expanded quickly in the decades after World War II and was privatized in 1987.