JAL plans drastic capacity cuts
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JAL Group has announced its route, flight frequency and fleet plan for second half of 2009, with drastic adjustments planned across its network and fleet in an effort to improve profitability. In the second half of this fiscal year, flight frequencies will be further reduced on a total of eight international routes, and the connections between Nagoya and two international destinations – Paris and Seoul (Incheon), will be discontinued. A major downsizing of aircraft in this period will affect 15 flights on 14 international routes, where Boeing 747-400s will be switched to medium-sized 777s and 767s, and medium sized 767s will be switched to even smaller 737s.
From 25 October, JAL will cut flight frequency on international routes from Tokyo Narita to Guangzhou, Incheon, New Delhi and Hong Kong, from Osaka to Shanghai (Pudong), Incheon, and Guangzhou, and from Nagoya to Guangzhou. From the same date however, it will launch a daily service from Tokyo Haneda to Beijing.
JAL posted a JPY99 billion (US$1 billion) loss for the first quarter of the 2009-10 fiscal year; deepening from the JPY95.6 billion loss recorded in the corresponding period last year. This downturn was due in part to a 53.9% year-on-year drop in international passenger revenue.
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