Japan Airlines Corp has filed for bankruptcy protection in one of Japan’s biggest bankruptcies. The restructuring is planned with the help of Enterprise Turnaround Initiative Corp of Japan.

The restructuring will reduce the presence of Asia's top carrier around the world. The airline has faced difficulties during recession. The Japanese government refused to bail out JAL again.

It has a fleet of 279 aircraft and carries12 million passengers a year on more than 400 routes. The ETIC said that the Airline is operating too many routs and aircrafts.

The number of domestic routs will be reduced from 119 from 136 while international routs will be reduced from 79 from 93

It also said that the Development Bank of Japan would provide JAL with 600 billion yen in debtor-in-possession financing so that the airline can continue operations.

The airline has a debt burden of $16.5bn. The bank would inject 300 billion yen of capital into JAL

The restructuring will cause the creditors to loose more than $3bn. The companies are expected to receive 730 billion yen worth of debt forgiveness.

JAL would cut workforce to 36,201 by fiscal year 2012 from 51,862 in fiscal year 2009.

JAL is likely to phase out old and less fuel-efficient aircraft and introduce smaller and more advanced planes.

JAL will retire all 37 of its Boeing 747-400 planes and all 16 of its McDonnell Douglas MD-90 aircraft. The ETIC indicated that there could be a 100 percent reduction of capital while the decision was yet to be taken in the forthcoming revival plan.

The stock exchange in Tokyo said that the company shares would be removed on February 20. JAL is expected to post operating profit of 115.7 billion yen in financial year 2013 from an expected loss of 265 billion yen in the current business year.