INTERCEPT TEST: China says it has successfully tested an anti-missile system for midcourse intercepts. The trial achieved the predicted results, the government says, stressing that the test was defensive in nature and not directed at any country. It produced no lingering space debris, the Foreign Affairs Ministry says. Details of the anti-missile system were not disclosed.

Japan Airlines may emerge from bankruptcy with a no-frills subsidiary and two-brand strategy like that of Qantas, under plans reportedly considered by the state agency that is now in effective control of the imminently bankrupt carrier. Another hurdle on the way to bankruptcy reorganization of Japan Airlines has been cleared: current and former employees have agreed to pension cuts that would take away 50% of benefits from the former and 30% from the latter.

Major partners in the oneworld alliance are offering management guidance, more capital and $500 million in commercial benefits to Japan Airlines, which is now one step closer to bankruptcy after an agreement between its creditors and the government. In a meeting with Transport Minister Seiji Maehara, JAL’s major creditor banks have tentatively agreed to the government’s proposal that the airline should go bankrupt and be reorganized under court supervision, despite the risk of damaging its brand, Kyodo news agency reports.