Japan Airlines, which is Asia’s top carrier by revenue, has just recently filled for court led restructuring and bankruptcy protection with Tokyo District Court. The Enterprise Turnaround Initiative Corp. of Japan, which is a government funded turnaround agency currently working on the wide range of financial problems that Japan Airlines has, revealed these bankruptcy plans.

The agency went on to say that it had decided to support the restructuring of Japan Airlines and noted that the airline will attempt to revitalize its unprofitable operations with a capital injection from the agency and by trimming its workforce and routes. Planes right now show that Japan Airlines will have to cut some 15,700 of its workforce and replace some of its aging planes to make them more fuel efficient.

This government backed investment fund will inject about Y300 billion into the airline to prop up the ailing carrier’s finances and help it carryout these restructuring measures. Total debt forgiveness from creditors would come to about 730 billion yen.

Japan Airlines has been bailed out by the Japanese government three times in the past 10 years. Now the airline will have to help itself through this downfall with painful operational cuts and tough decisions about foreign capital and alliances.

Also, all the board members have also voted to resign from Japan Airlines. The turnaround will allow the airline to keep flying, while investors in the company are likely to lose most of the money that they injected into the now fallen airline. Only time will tell when Japan Airlines will get back on its feet and enter back into its old glory days.