Japan Airlines (JAL) has filed for bankruptcy protection after racking up huge debts in the wake of the financial crisis.

According to its website, Japan Airlines (JAL) has officially filed for bankruptcy protection, putting around 15,000 jobs at stake.

Asia’s largest air carrier has faced formidable financial pressure in recent months and has suffered from a fall in demand for air travel. The airline’s collapse, announced today (19 January), is one of Japan’s biggest corporate failures to date.

The falling number in passengers has caused the company to rack up $16.5 billion (£10.1bn) in debt.

JAL’s corporate restructuring will be supported by the state-backed Enterprise Turnaround Initiative Corporation of Japan (ETIC). The turnaround organisation has said it will inject around ¥300bn (£2bn) into the troubled airline.

JAL’s 15,000 employees are now facing potential unemployment and there have been reports in the Japanese media that all board members have voted to resign.

According to the Japanese government, flights will continue as normal as the company is restructured.

JAL will also receive a credit line worth ¥600bn as well as ¥730bn in debt waivers.

Shares in the airline have reached a record low, valuing the company at just $150 million. Tokyo Stock Exchange will delist the share on 20 February.