On Sunday, the struggling carrier Japan Airlines (JAL) was thrown a temporary lifeline after the Japanese government agreed to double a state-sponsored credit line to Y200 billion ($2.2 billion).

After ministers including Transport Minister Seiji Maehara and Deputy Prime Minister Naoto Kan met to discuss how Tokyo could further support the ailing airline, the government asked the Development Bank of Japan (DBJ) to raise its commitment facility to JAL.

The DBJ, which is 100-percent owned by the Japanese government, said it would consider the request and come to a decision as soon as possible “in order to cooperate with the safe operation” of the carrier. JAL has already used Y55 billion of its Y100 billion credit line with the bank.

The increased credit line is aimed at allaying fears among JAL’s suppliers and creditors about the airline’s financial stability.

Fears that the carrier would be forced to seek court-administered rehabilitation battered JAL’s shares. Before the market closed for the New Year holidays last Wednesday, The shares fell to a record low of Y60 and finished at Y67.

(article source: The Financial Times, photo source: BBC)