JAL to focus on high-yield routes
Contributors are not employed, compensated or governed by TD, opinions and statements are from the contributor directly
Japan Airlines (JAL) is intent on building a network capable of producing profits even in the face of rising fuel costs or slowing demand, the Business Times has reported. Towards this end, JAL has been concentrating its resources on high-profit and growth routes, suspending or reducing flight frequency on low-yield scheduled primarily tourist destination routes and mounting more charter flight operations.
“This (profit-focused network) will enable us to take full advantage of the opportunities for growth as well as cope with potential threats from the opening of a fourth runway at Haneda Airport and its internationalisation and from the extension of Narita’s second runway to 2,500m in 2010,” JAL Public Relations Manager Stephen Pearlman told a group of visiting journalists in Tokyo recently.
Total capacity for Haneda will rise by 40% with 60,000 slots for international flights, while slots will rise by 10% at Narita, according to the report.
Between 2008 and 2010, the carrier plans to retire 46 aircraft and introduce 65 more fuel-efficient, mainly small and medium-size aircraft like the Boeing 787 or Embraer 170. It is also expanding international and domestic routes of its subsidiary airlines, JALways, JAL Express, and J-AIR from 25% to around 40% in three years.
“We have not stopped investing in our products, which appeal to high-yield business and top-tier travellers,” said Pearlman.
JAL’s 53,100 workforce is expected to decrease by 8% to 48,800 staff by the end of this fiscal year ending 31 March 2009, mainly by freezing recruitment, not replacing retiring staff and implementing early retirement programmes, the report added.
Comments are closed.