TOKYO: Shares in Japan Airlines Corp. nosedived 81 percent to just 7 yen Wednesday as the money-losing airline was expected to file for bankruptcy protection as early as next week.

Investors dumped JAL shares Wednesday, with the stock dropping 30 yen - the maximum one-day decline allowed in JAL's stock - from Tuesday's finish of 37 yen.

The Nikkei 225 stock average lost 0.9 percent to 10,781.92 in the morning session.

Japan's top business daily Nikkei and the major daily Ashai said Asia's biggest airline was expected to file for bankruptcy protection as early as Jan. 19 with its shares to be delisted.

"The reports that JAL shares are to be delisted spooked investors. Investors continued to sell its shares because they could well become just worthless," said Yutaka Shiraki, senior strategist at Mitsubishi UFJ Securities Co. Ltd.

Kazuho Inamori, founder of electronics component maker Kyocera Corp., is reportedly expected to head JAL during the restructuring.

A Kyocera spokeswoman said Inamori is to meet Wednesday with officials from the state-backed corporate turnaround body responsible for JAL's restructuring.

As part of JAL's restructuring, the turnaround body is also considering setting up a budget airline, Kyodo News agency said Wednesday.

While the Japanese airline is teetering toward bankruptcy, its access to Asia is a prized asset for other airlines.

Delta Air Lines Inc. - the world's biggest airline operator - and its rival American Airlines are vying for a stake in JAL as they seek to expand their Asian networks.

American Airlines, along with its alliance partners, on Tuesday boosted its offer of support to Japan Airlines to keep the money-losing airline with the oneworld family.

American, British, Airways, Qantas Airways and Cathay Pacific Airways said they are ready to inject $1.4 billion cash into Japan's flagship carrier, up from $1.1 billion. In addition, they will guarantee $2 billion in revenue over the next three years if JAL stays in the oneworld alliance.

Delta and its SkyTeam partners, for their part, have offered $1 billion, including $500 million in cash.

Following its bankruptcy filing, JAL is to slash about 15,600 jobs - 33 percent of its group work force - under a restructuring plan being hammered out by the state-backed corporate turnaround body, Kyodo has said.

The Enterprise Turnaround Initiative Corp. of Japan, which is responsible for JAL's restructuring, will ask banks to forgive 350 billion yen ($3.8 billion) of debt owed by the airline, the Nikkei said during the weekend. - AP