What that does is to take all the text out of the file and replace accented characters with unaccented characters. As Fred says, you will have to decide what you are going to do before you can work out how to do it.
Going backwards through your code, you have some repeated code. Lines 56‑59 should be a separate method. Do you really need to replace ä twice?
Lines 41‑55 look confused; there are lots of double negatives in there. What is that supposed to do? Copy the characters and change them to lower case? It also contains a potentially dangerous bit of bad style:-
== false
Never use == true or == false, which are not only poor style but also error‑prone: what if you write = instead of ==? You get several errors for the price of one.
Not
if (b == true) ...
but
if (b) ...
Not
if (b == false) ...
but
if (!b) ...
The same applies to while. You have a
nameDone variable and you are checking whether it is false. If you change the name of the variable, you can
test whether it is true, and that will make code easier to read. Similarly, you can test
if (ch == space || ch == tab) ...
which removes all the negations, but you would have to swap the two halves of the
if‑else. But it is not clear what those lines are doing. There must be a simpler way to do all that, if as Fred said, you think about what you want to do and plan it properly.
Why have you got so many static methods? Assume that the keyword static is an error unless you know a good reason for using it.
Why have you got so much code in the
main method?
You are using a very old‑fashioned style. Why? Why use a buffered reader when you could use a Scanner? Why use a
finally when you could use try with resources?