JAL to slash 40% of international operations
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Tokyo, April 28, 2010: Japan Airlines (JAL) announced today that revisions will be made to a part of the route, flight frequency and fleet plan for the first half of fiscal year 2010, as well as decided on plans for the second half of the year ending March 31, 2011.
JAL has restructured its overall network with the clear objective of returning to profitability as swiftly as possible by creating a solid business model that can withstand the fluctuations in economic conditions and by generating profits without overly relying on future traffic demand. This plan includes the retirement of the Boeing 747-400 and Airbus 300-600 aircraft by the end of this fiscal year, bold withdrawal from several overseas regions, and the drastic contraction in the size of operations. It is formulated to achieve within one year, substantial reductions in the airline’s fixed costs, a target which was initially planned to be accomplished over a period of 3 years.
The airline has decided to discontinue services on 15 international routes with 86 weekly roundtrip flights, as well as on 30 domestic routes with a maximum of 58* daily roundtrip flights. Totaling the changes made since fiscal year 2009, JAL will end operations on 28 international routes with the closure of 11 overseas bases while domestically, 50 routes will be terminated along with 8 offices. The international and domestic passenger capacity (measured in available seat kilometer) will as a result be reduced by 40% and 30% respectively compared to levels in fiscal year 2008.
*56 roundtrip flights if excluding seasonally-operated flights
The extent to which the route and flight frequency plan has been streamlined is vital to achieving a swift revival of the JAL Group. JAL seeks the understanding of its customers who will be inconvenienced by the changes announced.
NOTE: The plans listed hereafter are subject to government approval.
A. INTERNATIONAL PASSENGER
While the overall scale of the airline’s international passenger operations will shrink by 40%, JAL will greatly expand the use of Haneda airport for international flights to maintain a global network with a focus on pivotal routes that can yield higher business demand.
Strengthening Narita Airport’s Hub Function
JAL will leverage on Narita airport as a global hub that serves excellently as a link between North America and Asia, and through detailed planning of flight schedules, provide transit passengers with much smoother transfers and convenience. Furthermore, with the use of JAL’s feeder services, it is convenient for passengers to connect between international flights at Narita and key domestic locations in Japan.
Strengthening of International Flights at Haneda
Capitalizing on Haneda airport’s strategic location, Japan Airlines plans to almost triple the number of international flights operating out from the airport that is conveniently situated in metropolitan Tokyo, from the current 5 daily flights to 14. In addition to the current short-haul flights within Asia operating during the convenient afternoon time belt, JAL intends to utilize late night and early morning slots at the airport to launch new routes to San Francisco, Honolulu, Paris and Bangkok. JAL aims to construct a well-balanced network by teaming high-traffic services from Haneda to the Americas, Europe and Asia, with its comprehensive connections to regions throughout Japan.
Options at Kansai, Osaka and Chubu, Nagoya
While JAL maintains its forte in operating short-haul Asia flights and flights to Honolulu from Kansai and Chubu airports, the airline plans to advance with the use of smaller aircraft to improve profitability. The aircraft configuration of Boeing 737-800 on the thriving Kansai=Gimpo (Seoul) route however, will be changed from a 144-seater to one with a capacity for 176 in order to capture the healthy demand on that rotue.
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