Japan - Shares of Japan Airlines (JAL) have plunged by 81 percent to a new record low amid fears of the company's bankruptcy and its removal from the stock exchange.

The Wednesday fall came despite an improved offer of investment from American Airlines, up from US$1 billion to US$1.3 billion.

JAL reportedly plans to file for bankruptcy on January 19 and embark on a government-led turnaround.

According to Yomiuri Shimbun, the state-backed Enterprise Turnaround Initiative Corp of Japan (ETIC) plans to arrange a 800 billion yen (US$8.7 billion) in capital to be made available to JAL to support its ongoing operations.

JAL is expected to cut more than 15,000 jobs, a third of its work force, in three years to save the troubled company from total collapse.

Japan's Prime Minister Yukio Hatoyama said Tuesday that JAL shareholders should take responsibility “in general” for the company, which has been bailed out at least three times in nine years.

MVZ/DB/JG

Originally published in Press TV