Japan Airlines Corp announced on Tuesday that it filed for bankruptcy protection with a multi-billion dollar debt as of the end of September 2009.

Some people were shocked by the news.

[Makiko Wong, Resident]:
"JAL has really been the flagship carrier for Japan and as a Japanese person I wanted them to do their best. But they've really hit the floor and I know a lot of friends' families who work for JAL and I'm really worried about them."

[Akiko Saito, Resident]:
"I thought that there was no way that JAL would fail. I was convinced that it would recover."

But the Enterprise Turnaround Initiative Corp of Japan, a fund that can draw on government-backed funding to bail out ailing firms, agreed to support the carrier.

[Seiji Maehara, Japanese Transport Minister]:
"Today Japan Airlines has officially requested assistance from the Enterprise Turnaround Initiative Corp of Japan and, to the courts has applied for rehabilitation according the Corporate Rehabilitation Law."

The airline has been bailed out by the government three times in the past 10 years and must now restructure itself. This involves slashing thousands of jobs, cutting pension payouts, and replacing aging planes with more fuel-efficient ones. All board members also voted to resign.

The Japanese government says it will help the airline to run its business as usual.

[Seiji Maehara, Japanese Transport Minister]:
"As Japan Airlines holds an important position in the airline infrastructure which is also part of the foundation of our nation's development, the government plans to support the company with necessary assistance until it is back on its feet."

Japan Airline’s bankruptcy is the sixth largest in Japan's history, ranking just below the 2001 collapse of retailer Mycal.