Airline stocks down on Japan Airlines fears

30th Dec 2009 11:11

Airline stocks are lower on industry fears that Japan Airlines, which slid another 24% today, could go into bankruptcy as part of a bailout plan.Local reports suggested Japan Airlines could be put through bankruptcy as part of the state-backed Enterprise Turnaround Initiative Corp of Japan (ETIC) initiative.Air France KLM, British Airways, Ryanair, EazyJet and Aer Lingus have slipped lower on the news.Transport Minister Seiji Maehara said cabinet ministers would meet at 9am GMT to discuss the airliner. He told reporters that no decision has been made on whether the group will face bankruptcy and it was not the only option.Japan Airlines applied for a bailout in late October from ETIC, a group of turnaround specialist. ETIC said it will make its decision next month.The group has had rival offers from American Airlines and Delta to buy a stake.