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JAL-2006-05- WLD CUP SOCCER
JAL-2006-WLD TOP RPK
JAL-2011-01-2010 WORLD TOP TRAFFIC
JAL-2011-03-TAIL LOGO CHANGE-A
JAL-2011-03-TAIL LOGO CHANGE-B
JAL-2012-03-A - 787 DELIVERY
JAL-2012-03-B - 787 DELIVERY
JAL-2012-03-C - 787 DELIVERY
JAL-2012-03-D - 787 DELIVERY
JAL-2012-10-787 AT CHANGI
JAL-2013-01 - ALL 787 GROUNDED
JAL-2013-04 - 787 OK TO FLY
JAL-2013-10 - A350-900 A350-1000 XWB ORDERS
JAL-2013-10 - AIRBUS ORDER-A
JAL-2013-10 - AIRBUS ORDER-B
JAL-2013-10 - AIRBUS ORDER-C
JAL-2013-10 - AIRBUS ORDER-D
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JAL-2015-12 - Narita to DFW.jpg
JAL-2016-04 - 787 Engine AD-A.jpg
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JAL-2016-04 - 787 Engine AD-C.jpg
JAL-2017-10 JAL Hawaiian Partnership.jpg
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JAL-CABIN ATTENDANTS - 2012-08
JAL-COACH FLT SVC ORD-NRT
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JAL-VISIT MT FUJI-A
JAL-VISIT MT FUJI-B
JAL-VISIT SAKURA JAPAN
FORMED IN 1951 AND STARTED OPERATIONS IN 1953. PRIVATIZED IN 1987. DOMESTIC, REGIONAL & INTERNATIONAL, SCHEDULED & CHARTER, PASSENGER & CARGO, JET AIRPLANE SERVICES.
4-11 HIGASHI-SHINAGAWA 2-CHOME
SHINAGAWA-KU, TOKYO 140-8605, JAPAN
JAPAN WAS ESTABLISHED IN 660, IT COVERS AN AREA OF 377,815, SQ KM, ITS POPULATION IS 125 MILLION, ITS CAPITAL CITY IS TOKYO, AND ITS OFFICIAL LANGUAGE IS JAPANESE.
JANUARY 1992: HOLDINGS IN JAPAN TRANSOCEAN AIR (SWL) 51%, DHL (DHL) 25%, HAWAIIAN (HWI) 12%, & AIR NEW ZEALAND (ANZ) 5% (SOLD FOR $70 MILLION IN 1994).
10/10 ORDERS (DECEMBER 1995) 777-200, "A" MARKET, 380 PASSENGER (PAX), 2 CLASS, TO REPLACE DC-10'S ON DOMESTIC ROUTES.
JANUARY 1993: 1992 = -$377 MILLION (NET LOSS): +6.9% (RPK) TRAFFIC, +4% PASSENGERS (PAX), -3.9% (FTK) FREIGHT TRAFFIC.
LAYOFFS ARE "TABOO" IN JAPAN.
APRIL 1993: 24 HOUR STRIKE BY 754 PILOTS (UNION WANTS FLIGHT ENGINEERS ON 747-400'S).
JUNE 1993: 747-446D (RU808) & 747-446 (RT657) DELIVERIES. 3/2 ORDERS 767-300 (CF6-80C2).
NOVEMBER 1993: 1ST MD-11 DELIVERY (2ND IN DECEMBER), 2 CLASS, 304 (PAX), WHEREAS LATER VERSIONS 3 CLASS, 235 - 252 (PAX).
JANUARY 1994: 1993 = -$240 MILLION (-25%) = -5,000 EMPLOYEES IN NEXT 4 YEARS. LAST 6 MONTHS -3.3% PASSENGERS.
5 OF 16 767'S EXTENDED TWIN-ENGINE OPERATIONS (ETOPS).
JANUARY 1995: 1994 = -$13.5 MILLION (-$285 MILLION), TO CUT -1,000 EMPLOYEES.
MARCH 1995: $180 MILLION, 4 ORDERS 737-400, 159 PAX.
APRIL 1995: FISCAL YEAR (FY) END OF MARCH 1995 = -$190 MILLION.
1 DC-10-30 (JT9D-59A), EX-JAPAN CHARTER & 2 MD-11 (PW4460).
MAY 1995: 1 747-400 (CFM56-3C1) & MD-11 DELIVERIES.
JUNE 1995: 1 737-400, & 1 767-300 (CF6-80C2B4F) DELIVERIES.
AUGUST 1995: (FAA) PULLS (JAL)'S PART 145 REPAIR STATION CERTIFICATE.
MEMO OF UNDERSTANDING (MOU) TO ACQUIRE 8 737-400'S IN 1996.
SEPTEMBER 1995: 737-4Q3 (26605) LEASED TO JAPAN TRANSOCEAN AIR (SWL). 1 747-200B (JT9D-7A), EX-(JAS).
OCTOBER 1995: $800 MILLION, 5 ORDERS (1998) 777-346, 12F, 377Y, 480 - 520 PASSENGERS (PAX), 2 CLASS, TO REPLACE 747SR'S, WITH -30% LESS FUEL, TO OPERATE ON TRUNK ROUTES & MAJOR REGIONAL SERVICES. 1 DC-10-40 (L/N 343) LEASED TO (JAA).
NOVEMBER 1995: CODE SHARE WITH AIR NEW ZEALAND (ANZ), FUKUOKA TO AUCKLAND, & CHRISTCHURCH.
THE (FAA) REINSTATED (JAL)'S REPAIR STATION LICENSE.
NEW 777'S TO BE "STAR JETS," WITH EACH NAMED AFTER A MAJOR CONSTELLATION.
DECEMBER 1995: TO FLY 747-300, 404 PAX, TO KONA, HAWAII. TO NEW DELHI, FROM OSAKA KANZAI.
JAN 1996: 1995 = +10.6% (RPK) TRAFFIC, 28.56 MILLION PASSENGERS (PAX) (+11.2%), +5.2% (FTK) FREIGHT TRAFFIC. TO DROP TO 17,000 EMPLOYEES BY MARCH 1998. 1995 = $1.3BILLION USA EXPENDITURE (LARGEST FOREIGN BUYER OF USA GOODS/SERVICES FOR 26TH YEAR). 1970 - 1995 PURCHASES FROM >3,000 USA COMPANIES = $24.9 BILLION.
777 DOMESTICALLY TO KAYOSHIMA, FUKUOKA & NAGASAKI. NEW ROUTES TO ZURICH & CHICAGO (ORD) (747-400'S). CODE SHARE WITH CANADIAN INTERNATIONAL (CDI), NAGOYA TO VANCOUVER (747).
1996 DELIVERIES OF 737-400, 777, & MD-11.
MARCH 1996: CODE SHARE WITH (VIE), OSAKA - HO CHI MINH CITY (JAL) DC-10, 266 (PAX) & (VIE) 767, 245 PAX.
1ST 777-200 (PW4077, 77,000 LBS THRUST), WILL HAVE 389 (PAX), 2 CLASS, INCLUDING 12 FIRST (F) SUPERSEATS, 4,630 MILES RANGE. THE 777-300 IS TO HAVE 550 PAX & 5,400 MILES RANGE.
APRIL 1996: FISCAL YEAR (FY) 1995 ENDING MARCH 1996 = +$4.5 MILLION (1ST +VE IN 5 YEARS!): +8.7% (PAX), 28.8 MILLION PAX, (+13.7% INTERNATIONAL, +6.9% DOMESTIC), +4.1% (FTK) FREIGHT TRAFFIC.
1 MD-11 (PW4460) (3RD IN LAST YEAR) DELIVERY.
MAY 1996: JOINT 747-200SF SERVICE, KANSAI TO GOTEBURG, VIA NEW DELHI. 777 OPERATES HANEDA - TOKYO & KAGOSHIMA.
JUNE 1996: $140 -160 MILLION ORDER, 12 (PW4090) ENGINES, FOR 5 777-300'S.
JULY 1996: RESUMES FLIGHTS TO INDIA, NEW DELHI, FROM NARITA AND KANSAI (MD-11'S). KANSAI/HOKODATE & SAPPORO/NIIGATA.
NEW CORPORATE 25 FLOOR OFFICE BUILDING AT TENNOZU ISLE ON TOKYO MONORAIL, FOR 3,200 EMPLOYEES.
AUGUST 1996: CODE SHARE WITH AIR FRANCE (AFA), TO NOUMEA, NEW CALEDONIA IN NOVEMBER 1996.
LAST QUARTER = +20% (RPK) TRAFFIC.
1 737-400 (CFM56-3C1) DELIVERY. 2 ORDERS (FEBRUARY 1997) 737-400'S & 2 ORDERS 767-300'S.
SEPTEMBER 1996: FROM TOKYO AND OSAKA, TO NEW DELHI (MD-11, 233 PAX). TO KONA.
3RD 737-446 & 3RD 777-246 DELIVERIES.
OCTOBER 1996: SINGAPORE IS (JAL)'S BUSIEST, CARGO STATION.
53RD DOMESTIC ROUTE, NAGOYA TO MIYAZAKI, KYUSHU (767). CODE SHARE WITH (QAN), NARITA TO CAIRNS, BRISBANE (747).
LAST 6 MONTHS = +$23 MILLION (-71%): +4.5% (PAX) (>15M); DUE TO HIGH FUEL COSTS, AND WEAK YEN.
DECEMBER 1996: JOINT CARGO OPERATION, WITH MALAYSIAN AIRLINES (MAS), TO PENANG, FROM NARITA, AND KANSAI (747-200F). CODE SHARE WITH MYANMAR AIRLINES (BRM).
JANUARY 1997: PLANS FOR SUBSIDIARY, LAUNCH, IN 1998, WITH 2 OR 3 737'S, (JAL) LEASED, & EXPAND TO 15 - 20 AIRPLANES IN A FEW YEARS, LINKING HUB CITIES, LIKE SAPPORO, NAGOYA, OSAKA, FUKUOKA, & NAHA, WITH TERMINAL CITIES LIKE YAMAGATA & MIYAZAKI, WITH FARES -20% LOWER. INITIAL CAPITAL $3.5 MILLION. JAPAN TRANSOCEAN AIR (SWL) TO OWN 10%. INITIALLY BASED AT ITAMI AIRPORT, OSAKA, WHICH BECAME THE DOMESTIC TERMINAL, WHEN KANSAI OPENED. MAY EXPAND TO 767'S, IN 1ST 2 YEARS. WILL BENEFIT IN SPRING 1997 FROM NEW 3RD RUNWAY AT TOKYO'S HANEDA AIRPORT.
CODE SHARE WITH AIR FRANCE (AFA) TO PARIS AND ISTANBUL (A320) - ALREADY OPERATES OSAKA - PARIS, TOKYO - NOUMEA.
1996 = 47,124 MILLION (RPM) TRAFFIC (#6 HIGHEST IN WORLD).
TO DOWNSIZE DOMESTIC FLEET FROM 767, 220 PAX TO 737-400, 150 PAX, & -2 747'S & 2 DC-10'S.
MARCH 1997: PILOT'S UNION STILL PUSHING FOR 3-CREW 747-400.
OUTSOURCES ALL 747 MAINTENANCE EXCEPT -400'S TO TAIKOO (XIAMEN) FOR 10 747'S EACH YEAR. POSSIBLE 747-400'S & MD-11'S IN THE FUTURE.
1 MD-11 (PW4460) DELIVERY.
APRIL 1997: EXPECTS FISCAL YEAR (FY) 1996 = -$112 MILLION: PLANS TO REDUCE ITS WORKFORCE FROM 19,000 - 17,000 BY MARCH 1998.
INTRODUCED NEW PERFORMANCE-BASED SALARIES (ACHIEVEMENT RATHER THAN AGE AND SENIORITY).
$13.7M, FOR 7 747, PYLON MODIFICATIONS AT (SASCO), INCLUDING OVERHAUL OF SECTION 41 (TO DATE 30 AIRFRAME SECTION 41 & 10 PYLON MODIFICATIONS).
2 767-300'S (JT9D-7R4D) TO (JAA). 2 DC-10-40'S (JT9D-59A), EX-(JAA).
MAY 1997: FISCAL YEAR (FY) 1996 = -$74.5 MILLION (+$4 MILLION), DUE TO SLUGGISH JAPANESE ECONOMY AND INCREASED FUEL COSTS: 30.2 MILLION (PAX) (+4.8%); 70.4% LF (+1.5).
777-200A (PW4084) DELIVERY.
JUNE 1997: NEW LOW-COST SUBSIDIARY, TO BE NAMED "JAL EXPRESS" (JAX), FOCUSSING ON SMALLER, LOW-CAPACITY DESTINATIONS. TO START OPERATIONS IN MARCH 1998 WITH 2 737-400'S, OSAKA TO DESTINATIONS ON KYUSHU ISLAND.
(JAL) PRESENTLY, ONLY HAS 23% DOMESTIC MARKET.
DURING FISCAL YEAR (FY) 1997, WILL ADD 2 747-400'S, 4 767'S, 2 777'S, & 1 MD-11.
JULY 1997: 20,098 EMPLOYEES (INCLUDING 2,602 FLIGHT CREW (FC).
CODE SHARE WITH SOUTH AFRICAN (SAA), OSAKA TO JOHANNESBURG, VIA BANGKOK (SAA) 747-200, 16F, 47C, 232Y - (JAL) HAS 2F, 8C, 60Y SEATS). 3RD CHINESE DESTINATION TO DALIAN, KEY ECONOMIC CENTER, FOR NE REGION OF CHINA.
FLEET FULLY EQUIPPED WITH (TCAS).
1 737-400 DELIVERY. DC-10-40 (46913) RETURNED FROM (JAA).
AUGUST 1997: ALLIANCE WITH AMERICAN (AAL), AND POSSIBLE CODE SHARE.
SEPTEMBER 1997: FISCAL YEAR (FY) 1996 = -$120M (INCLUDES HOTEL & RESORT BUSINESSES).
1ST FEMALE CAPTAIN OF 747, NAMED TOMOKO OTAKE, ON HANEDA - HOKODATE ROUTE.
1 767-346 (28837) DELIVERY. TO SELL 20 DC-10-40'S FOR $170M, INCLUDING 9 SPARE (JT9D-59A) ENGINES, TO NI AIRCRAFT LEASING CORPORATION, AND OMEGA AIRLINES (OMG), STARTING MARCH 1998 THROUGH 2005, TO BE REPLACED BY 767 & 777'S. MD-11 (48578, "PRYER'S WOODPECKER") DELIVERY.
OCTOBER 1997: NEW WEB SITE (http://www.japanair.com).
CONTRACT WITH BOEING WICHITA TO CONVERT 4 747-300'S FROM DOMESTIC TO INTERNATIONAL CONFIGURATION.
1ST 9 MONTHS = 41,984 MILLION (RPK) TRAFFIC (10TH HIGHEST IN WORLD).
178 767 120 MINUTES EXTENDED TWIN-ENGINE OPERATIONS (ETOPS) FLIGHTS OVER WESTERN PACIFIC.
NOVEMBER 1997: JAPAN EXPRESS (JAX), NOW PLANS FOR START, IN JULY 1998, WITH 2 737-400'S, 150 PAX.
(JAL) BUSINESS AGREEMENT, WITH AIR DO (HIA), TO PROVIDE TECHNICAL, OPERATIONAL, AND AIRPORT HANDLING SUPPORT, WHEN (HIA) STARTS IN APRIL 1998 (HIA PRESIDENT, AKIRA NAKAMURA IS EX-(JAL) MARKETING MANAGER).
737-446 (28832) DELIVERY.
DECEMBER 1997: APRIL - SEPTEMBER 1997 = +10.7% (RPK) TRAFFIC DOMESTIC, 10.34 MILLION (PAX), AND EXPECT 1997 = >20 MILLION PASSENGERS (10.3M).
JANUARY 1998: ON TARGET TO REDUCE STAFF, BY -4,250, OVER 4 YEARS, TO 17,400, BY END OF FISCAL YEAR (FY) 1997.
SPARES AGREEMENT WITH (ANA), (JAS), & (JTA). (JAL), (JAS), & (ANA) ALREADY HAVE SPARES AGREEMENT FOR 777'S. ARRANGEMENT = -187 SPARE ITEMS = -$4 MILLION, ANNUAL INVENTORY COSTS SAVINGS. CURRENTLY, TOTAL $1.6 BILLION, INCLUDING ENGINES.
CODE SHARE WITH TURKISH AIRLINES (THY), OSAKA KANSAI - ISTANBUL (A340-300). IN APRIL 1998, NEW ROUTES TO NEW YORK & LOS ANGELES (LAX), & NAGOYA - (LAX). WITH GOVERNMENT OK, HIROSHIMA TO HONOLULU, NAGOYA - LONDON, & CHINA SERVICE EXPANSION TO BEIJING, SHANGHAI, & DALIAN, WITH POTENTIAL NEW SERVICE TO TIANJIN, WUHAN, TSINGTAO, XIAMEN & SHENYANG, FROM OSAKA KANSAI OR NAGOYA.
REDUCES 19F, TO 14F, PASSENGER SEATS ON 17 747-400'S, WITH SLEEPER SEAT INSTALLATIONS. 1 ORDER 737-400 & 1 ORDER 767-300.
FEBRUARY 1998: NAGOYA - LONDON (MD-11, 65C, 168Y). OSAKA & NAGOYA - TIANJIN, CHINA (767-300, 30C, 209Y).
1 767-300 (JT9D-7R4D), EX-(JAA), DELIVERY.
MARCH 1998: NEW ROUTES: FUKUSHIMA - SAPPORO, HIROSHIMA - HONOLULU (HNL), NAGOYA - LOS ANGELES (LAX). CODE SHARE WITH AMERICAN (AAL) GIVES (AAL), BEYOND TOKYO ACCESS, TO NAGOYA & BANGKOK, WHEREAS (JAL), HAS BEYOND DALLAS (DFW) ACCESS TO CHICAGO (ORD), (LAX), ORLANDO, MIAMI (MIA) & LAS VEGAS.
CIVIL AVIATION BUREAU OF JAPAN INCREASES (ETOPS) APPROVAL FROM 120 TO 180 MINUTES.
2 777'S (23-27364 "SIRIUS" /96; 26-27365 "VEGA" /96) DELIVERIES.
APRIL 1998: FISCAL YEAR (FY) 1997 ENDING MARCH 1998, TAKES $1.2 BILLION WRITE OFF IN ACCUMULATED LOSSES, RESULTS IN SALE OF ASSOCIATED BUSINESSES (HOTELS/RESORTS).
SUSUMU YAMAJI, CHAIRMAN & AKIRA KONDO, PRESIDENT, TO RESIGN IN JUNE 1998, AS RESULT OF THIS DECISION. ISAO KANEKO, NEW PRESIDENT.
(2,626 FLIGHT CREW (FC) EMPLOYEES).
CONTRACT TO SOUTHERN AIR TRANSPORT (STT), TO OPERATE 747-200F, WET-LEASED, SCHEDULED TRANSPACIFIC, CARGO SERVICE, FOR 1 YEAR.
IN JULY 1998, NEW CHINESE ROUTES, TOKYO NARITA - DALIAN, & - QINGDAO.
DURING 1998 - 1999 FISCAL YEAR (FY), (JAL) WILL RETIRE 2 747'S, 1 DC-10 & TAKE DELIVERIES OF 2 737-400'S, 4 747-400'S, AND 3 777-300'S.
JUNE 1998: (FY) 1997 = -$767 MILLION (-$70.4 MILLION): 31.36 MILLION (PAX) (+3.9%), 850K TONNES CARGO (+2.6%), INTERNATIONAL TRAFFIC -2.2% (RPK), TOTAL +2% (RPK), +2.6% (ASK), 70% LF (-.4).
-1,500 GROUND CREW JOBS.
TO DALIAN AND TSINGTAO, CHINA (767-300, 30C, 209Y) (NOW 6 CITIES IN CHINA INCLUDING HONG KONG). IN OCTOBER 1998, TO LAS VEGAS (747-300) (1ST NEW USA CITY IN 2 YEARS).
1 737-400 DELIVERY. SOLD 1 747-146 (TOTAL FOR 747 CLASSICS NOW 50). SOLD 1 DC-10-40 TO REDUCE TOTAL TO 18.
JULY 1998: CODE SHARE WITH SWISSAIR (SWS), TO ZURICH.
JAL EXPRESS, (JAL)'S LOW-COST SUBSIDIARY, STARTED SERVICE, OSAKA ITAMI TO MIYAZAKI & KAGOSHIMA, ON JAPAN'S S ISLAND, KYUSHU. BASED AT ITAMI, OPERATES WITH 2 737-446'S (2718-27916; 2729-27917), (JAL) LEASED, JAPAN TRANSOCEAN AIR (SWL) MAINTENANCE.
FLIGHT ATTENDANTS, CALLED SKY CAST, ALSO CLEAN 150 PASSNEGER AIRCRAFT BETWEEN FLIGHTS.
1997 TOP WORLD AIRLINE COMPARISONS:
EMPLOYEES (K): 19 SAS 22; 20 ACN 22; 21 TII 22; 22 PIA 21; 23 AIN 19; 24 ALI 19; 25 JAL 17; 26 KAL 17; 27 ANS 17; 28 SWS 17.
(RPK) (TRAFFIC) (B): 1 UAL 195; 2 AAL 172; 3 DAL 160; 4 NWA 116; 5 BAB 106; 6 JAL 77.2; 7 CAL 77.0; 8 DLH 71; 9 AFA 70; 10 USA 67.
PASSENGERS (PAX) (M): 6 SWA 50; 7 ANA 41; 8 CAL 39; 9 DLH 35; 10 BAB 34; 11 JAL 32; 12 KAL 26; 13 ALI 25; 14 TWA 24; 15 TWA 24.
(FTK) (FREIGHT TRAFFIC) (B): 1 FED 9.3; 2 GRC 6.5; 3 KAL 5.7; 4 UPS 5.4; 5 AFA 5.0; 6 SIA 4.8; 7 JAL 4.2; 8 BAB 3.9; 9 KLM 3.7; 10 CAT 3.6.
99TH 747 DELIVERY. 100TH TO BE DELIVERED IN NOVEMBER 1998. 1ST 777-300 (NAMED "REGULUS" = "HEART OF THE LION") 18F, 452Y, DELIVERY.
AUGUST 1998: TO CUT -1,500 JOBS, BY 2001.
2ND 777-300 DELIVERY.
SEPTEMBER 1998: JOINT, DIRECT, FREIGHT SERVICE WITH LUFTHANSA CARGO (LUB), AND (SAS) CARGO, BETWEEN FRANKFURT, GOTHENBURG, AND OSAKA.
(IATA) STATISTICS FOR JAPAN AIRLINES (JAL) FISCAL YEAR (FY) 1997 = -$734.85 MILLION.
JAPAN AIRLINES (JAL) IS NEW MEMBER OF NEW GLOBAL ALLIANCE, "ONEWORLD:" AMERICAN (AAL), BRITISH (BAB), CANADIAN (CDI), QANTAS (QAN), AND CATHAY (CAT). OTHER NEW POSSIBLE MEMBERS: IBERIA (IBE), FINNAIR (FIN), AND DRAGONAIR (DRG).
OCTOBER 1998: ISAO KANEKO, PRESIDENT, TO TAKE -50% CUT IN SALARY, FOR 3 MONTHS, TO ACCEPT RESPONSIBILITY FOR AIRLINE ILLEGAL PAYMENTS TO RACKETEERS. HIS PAY HAD ALREADY BEEN REDUCED BY -35%, BECAUSE OF AIRLINE'S POOR FINANCIAL STATE.
1ST 6 MONTHS = 37.7B (RPK) TRAFFIC (-2.8%), 66.8% LF (-3.6), 1.91B (FTK) (-13.3%), 14.72M PAX (-2.95). 6 MONTHS ENDING SEPTEMBER 30 = +$126 MILLION.
4 767 120 MINUTES (ETOPS) OVER PACIFIC = 178 TOTAL FLIGHTS.
NOVEMBER 1998: IN NEXT 3 YEARS, TO CUT GROUND STAFF, BY -2,300, -800 OVER -1,500, PREVIOUSLY STATED.
100TH 747 DELIVERY!
JANUARY 1999: CODE SHARE WITH BRITISH AIRWAYS (BAB), OSAKA - LONDON, STARTING IN APRIL 1999, INCLUDING FREQUENT FLYER MILES. IN 3/99, NARITA - DALLAS (DFW) (747-400, 14F; 82C; 218Y).
RETURNED 1 747-146B (427-22067) & 1 747-246B (192-20529), TO LESSOR.
BOUGHT 747-200 (JT9D-7Q) (22477), EX-SOUTHERN AIR TRANSPORT (STT), FROM FINOVA. IN 1999, WILL RECEIVE 4 747-400'S, 2 777-300'S, 1 767-300, 2 737-400'S & 1 FROM (JAA), AND RETIRE 4 747'S & 1 DC-10.
FEBRUARY 1999: 3RD 777-346 DELIVERY. IN 1999, TO RECEIVE 1 737-400, 4 747-400'S, 1 767-300, & 3 777-300'S.
MARCH 1999: CODE SHARE WITH CANADIAN (CDI), TO VANCOUVER. NEW SERVICE TO DALLAS (DFW) (747-400, 314 PAX).
PLANS TO CONVERT ITS JAPAN AIR CHARTER (JAI) SUBSIDIARY, INTO A SCHEDULED CARRIER, +767'S TO (JAL) EXPRESS (JEX) AND INCREASE PREVIOUSLY ANNOUNCED LAYOFFS. AS A SCHEDULED AIRLINE, (JAI) WILL BE RENAMED & OPERATE ROUTES, TO SE ASIA, HAWAII, OTHER PACIFIC RESORT AREAS, & OCEANIA.
2ND 747-300, TO BOEING WICHITA, FOR CONVERSION TO INTERNATIONAL PAX CONFIGURATION. PLANS FOR +2 MORE. 747-446 (1202-26362, JA8916) DELIVERY.
APRIL 1999: 20,248 EMPLOYEES (INCLUDING 2,782 FLIGHT CREW (FC) & 7,166 CABIN ATTENDANTS (CA)).
SITA: TYOXTJL. (http://www.jal.co.jp).
FISCAL YEAR (FY) 1998 = +$21.7 MILLION, INCLUDING +$66.7M, FROM SALE OF AIRPLANES.
747-446 (1208-29899, JA8917) DELIVERY. 777-300 (PW4090) DELIVERY.
MAY 1999: OSAKA KANSAI - CHICAGO (ORD) (747-400, 72C, 278Y). CODE SHARE WITH CATHAY PACIFIC (CAT), OSAKA & NAGOYA TO HONG KONG.
SOLD DC-10-40 (262-46966) TO NI AIRCRAFT LEASING.
JUNE 1999: FISCAL YEAR (FY) 1998 = +$219M, DESPITE BUSINESS TRAVEL BEING DOWN THROUGHOUT THE YEAR, AND DECLINE IN CARGO TRAFFIC. FUEL WAS -17%, 11.37M INTERNATIONAL (PAX) (+1.8%), 20.21M DOMESTIC PASSENGERS (PAX) (FLAT). CARGO VOLUME 3.8B (FTK) (-1.1%). PROJECTS +$83.3M FOR (FY) 1999. 1998 = 48.97B (RPM) (+4.9%), 7.7B (FTM) (-1.4%).
1998 TOP WORLD AIRLINES - TRAFFIC (RPM) (BILLIONS):
1 UAL 125.54; 2 AAL 108.87; 3 DAL 103.24; 4 BAB 72.08; 5 NWA 66.71; 6 CAL 50.94; 7 JAL 48.97; 8 DLH 46.88; 9 AFA 46.35; 10 USA 41.25; 11 SIA 35.88; 12 KLM 35.59; 13 QAN 35.22.
737-446 (3111-29864, JA8999) DELIVERY. 747SR, PAINTED WITH POSTER OF "GLAY," A LEADING JAPANESE POP GROUP, TO COMMEMORATE 10 YEARS SERVICE, ON ROUTE TO HAKODATE. 747-246 (19824, N558SW), SOLD TO JUMBO JET INC, TO MARANA.
JULY 1999: TO CODE SHARE WITH IBERIA (IBE) IN OCTOBER 1999, ON AMSTERDAM TO MADRID AND BARCELONA.
AUGUST 1999: MAJOR SHAREHOLDER, EITARO ITOYAMA, THREATENS TO MOUNT A HOSTILE TAKEOVER BID TO OUST AIRLINE'S MANAGEMENT, DUE TO HIS OPINION OF JAPAN AIRLIES (JAL)'S LOSSES, SCANDALS, ITS $12.87B DEBT, AND ONGOING TAX INVESTIGATION.
1ST 7 MONTHS INTERNATIONAL = 36.72B (RPK) TRAFFIC (+9%), 2.58B (FTK) (+9.2%), 6.88M (PAX).
777-346 (238-28397, JA8945) DELIVERY.
SEPTEMBER 1999: IN NOVEMBER 1999, NEW YORK (JFK) TO SAO PAULO (747-400).
PAINTS 747-146 SUD (JA8170), WITH PORTRAIT, OF LEADING JAPANESE POP GROUP "GLAY," TO COMMEMORATE 10 YEARS, OF TOKYO - HAKODATE ROUTE. 4TH 747-346 TO BOEING WICHITA, FOR CONVERSION FROM DOMESTIC PASSENGERS (PAX), TO INTERNATIONAL (PAX) CONFIGURATION.
OCTOBER 1999: TOTAL 120 MINUTES WESTERN PACIFIC (ETOPS) FLIGHTS: 5 767'S: 178.
NOVEMBER 1999: RESTRUCTURES AIRLINE, INTO 3 WHOLLY OWNED, COMPANIES: ENGINEERING & MAINTENANCE; CARGO; AND PASSENGER SALES & MARKETING.
SOLD 747-246B (166-20333) TO UNICAPITAL, SOLD TO GULF FALCON (GFG). 747-446B (1234-27650, JA8918) & 767-336 (772-29863, JA8988) DELIVERIES. DC-10-40 (310-47825, JA8542), LEASED TO JALWAYS (JAI).
DECEMBER 1999: SELLS 20% OF ITS STOCK IN DHL (DHL), RETAINS 6%.
747-446B (1236-27100, JA8919) DELIVERY.
JANUARY 2000: PLANS FOR 747-200 (23389) CONVERSION TO FREIGHTER AT (TAECO), XIAMEN, IN AUGUST 2000. 747-246B (489-22478, JA8149), JALWAYS (JAI) LEASED. BY END OF MARCH 2001, WILL TRANSFER +4 747-400'S TO JAL EXPRESS (JEX). CURRENTLY HAS 4 747-400'S (27916; 27917; 28087; 29864) AT JAL EXPRESS (JEX). DC-10-40 (47823) SOLD TO (FSB).
FEBRUARY 2000: SIGNS AGREEMENT WITH CUBA'S, GOVERNMENT TOURIST AGENCY, CUBANACAN, FOR CHARTER FLIGHTS IN AUGUST 2000, OSAKA - HAVANA (747, 350 PAX), WITH TECHNICAL STOP IN VANCOUVER. IN APRIL 2000, FREIGHTER SERVICE TO SHANGHAI.
SEEKING BOARD APPROVAL FOR 5/5 ORDERS 777-300X'S.
MARCH 2000: FORMING (JAL) ENGINEERING & MAINTENANCE COMPANY WITH 5,000 EMPLOYEES. TO TERMINATE -500 TO -700 JOBS BY END OF 2002, BY ATTRITION, EARLY RETIREMENT, AND SLOWER RECRUITMENT.
APRIL 2000: NAMED OFFICIAL AIRLINE, OF TOKYO, DISNEYSEA, THEME PARK, TO OPEN LATE IN 2001.
IN MAY 2000, 1ST JAPANESE AIRLINE, TO INTRODUCE INTERNATIONAL, E-TICKETING.
19,682 EMPLOYEES (INCLUDING 2,782 FLIGHT CREW (FC), & 7,166 CABIN ATTENDANTS (CA)).
8/2 ORDERS (JUNE 2004) 777-300X (GE90-115B), 10F, 100C, 190Y PAX.
MAY 2000: HEAVY MAINTENANCE CONTRACT FOR ALL NIPPON (ANA) 747-400'S.
STARTS JOINT SHUTTLE SERVICE, TOKYO - OSAKA (35 MILLION (PAX)/YEAR), WITH ALL NIPPON (ANA), AND JAPAN AIR SERVICE (JAS).
JAPAN AIRLINES (JAL) GROUP 1999 = +$184 MILLION (-26%), DUE TO HIGHER FUEL COSTS: +3% (PAX); +10.8% (FTK). 1999 JAPAN AIRLINES (JAL) = -$53.33 MILLION.
STATES ITS 747-400, LANDING FEES, ARE: TOKYO NARITA $9,000; OSAKA KANZAI $8.6K; NEW YORK (JFK) $3.2K; LOS ANGELES (LAX) $1.15K. THESE FEES CREATE 14.3% DIRECT OPERATING COSTS (DOC), VS WORLD AVERAGE 6.9%, & USA AVERAGE 2.7%.
JUNE 2000: 1ST AIRLINE IN JAPAN TO RECEIVE CERTIFICATION, TO (IS0) 14001, (A GLOBAL STANDARD FOR ENVIRONMENTAL MANAGEMENT SYSTEMS).
JAPAN AIRLINES (JAL) CARGO, & NORTHWEST (NWA) CARGO, EACH OF WHOM, WILL HAVE 10 747-200F'S (10TH FOR (NWA) IN SEPTEMBER 2000 & (JAL)'S 10TH IN DECEMBER 2000), FORM CARGO ALLIANCE, INCLUDING CODE SHARE, AND INTERLINE SPACE AGREEMENT.
JULY 2000: STARTS SHUTTLE SERVICE (66 FLIGHTS/DAY), WITH ALL NIPPON (ANA), AND JAPAN AIR SYSTEM (JAS), BETWEEN TOKYO - HANEDA, ITAMI AND OSAKA - KANSAI, EVERY 30 MINUTES. IN AUGUST 2000, 5 CHARTER FLIGHTS TO HAVANA, TO CATER FOR GROWING NUMBER OF JAPANESE TOURISTS WANTING TO VISIT CUBA.
JAPAN AIRLIES (JAL) GROUP 1999 = +$187.10 MILLION (+$253.38M): 82.90 BILLION (RPK) TRAFFIC (+5.2%); 70.4% LF; 4.42B (FTK) (+9.2%); 32.93 MILLION PAX (+5%). 18,974 EMPLOYEES.
1999 WORLD TOP AIRLINES COMPARISONS:
(RPK) (TRAFFIC) (B): 1 UAL 201.9; 2 AAL 177.3; 3 DAL 168.6; 4 NWA 119.3; 5 BAB 117.5; 6 CAL 93.4; 7 AFA 83.7; 8 JAL 82.9; 9 DLH 81.4; 10 USA 66.9; 11 SIA 64.5.
NET ($MILLION): 16 SAS 217; 17 AMW 201; 18 ASA 196; 19 JAL 187; 20 SWS 171; 21 IBE 154; 22 ACN 147; 23 TII 140; 24 ANZ 114.
EMPLOYEES (K): 21 IND 22; 22 TWA 21; 23 EGP 20.1; 24 JAL 19.
(FTK) (FREIGHT TRAFFIC) (B): 1 FED 10.31; 2 LUB 7.07; 3 UPS 6.02; 4 KAL 5.96; 5 SIA 5.48; 6 AFA 4.73; 7 BAB 4.54; 8 JAL 4.42; 9 KLM 4.15.
PAINTS DOMESTIC 747-400, WITH JAPAN, OLYMPIC COMMITTEE EMBLEM, WITH GIANT SLOGAN.
AUGUST 2000: NEW PORTAL AT (http://www.japanairlines.com).
AGREEMENT WITH ALL NIPPON (ANA) & JAPAN AIR SYSTEMS (JAS), TO ESTABLISH COOPERATIVE WEBSITE, FOR DOMESTIC TICKET SALES, CALLED kokunaisen.com, TO BE ESTABLISHED OCTOBER 2000, AND LAUNCHED IN APRIL 2001.
IN NOVEMBER 2000, CODE SHARE WITH VIETNAM (VIE), NARITA - HO CHI MINH CITY (747-400, 70C, 340Y, 6/WEEK).
BY END OF APRIL 2001, JAPAN AIRLINES (JAL) PLANS TO TRANSFER ALL 737-400'S, TO JAL EXPRESS (JEX). MAINTENANCE & ENGINEERING FUNCTIONS, TO BE BY JAPAN TRANSOCEAN (SWL). CAPTAINS WILL BE EX-PATRIOT PILOTS (FC).
747-246B (635-23389, JA8169) TO XIAMEN, FOR CONVERSION TO FREIGHTER. 747-446 (1253-27648, JA8920) DELIVERY.
SEPTEMBER 2000: CODE SHARE WITH ALITALIA (ALI), TO ITALY (JAPANESE MOST POPULAR EUROPEAN DESTINATION WITH 1999 = 4.1 MILLION PASSENGERS). NEW NONSTOP TO HO CHI MINH CITY. IN OCTOBER 2000, INTERNATIONAL SUBSIDIARY, JALWAYS (JAI), WILL TAKE OVER ROUTES, TO SAIPAN FROM OSAKA AND TOKYO, AND LATER FUKUOKA - HONOLULU. ALSO, JAPAN AIRLINES (JAL) CARGO, OSAKA - SINGAPORE WITH SINGAPORE AIRLINES CARGO.
BY END OF WINTER, TO TRANSFER 737-400 AIRPLANES TO ITS SUBSIDIARY, JAL EXPRESS (JEX), WITH 8 AIRPLANES OPERATING REGIONAL ROUTES, ON WET-LEASES. 747-246B (JT9D-7A) (116-19823, /71 97 32), SOLD TO JUMBO JET LEASING (UAG).
OCTOBER 2000: 18,974 EMPLOYEES (INCLUDING 2,728 FLIGHT CREW (FC), 7,127 CABIN ATTENDANTS (CA), AND 4,013 MAINTENANCE TECHNICIANS (MT)) (-4.2%).
IN NOVEMBER 2000, CODE SHARE WITH ALITALIA (ALI), TO ITALY, OSAKA - ROME (3/WEEK).
NOVEMBER 2000: 6 MONTHS = +$356 MILLIONS (>500%): DUE TO DRAMATIC IMPROVEMENTS IN INTERNATIONAL NETWORK, +26% FUEL COSTS. FISCAL YEAR (FY) 1999 = -#5.7 BILLION YEN.
CODE SHARE WITH VIETNAM AIRLINES (VIE), NARITA - HO CHI MINH CITY. NAGOYA - HANOI (DC-10-40).
JOINT VENTURE, WITH PRATT & WHITNEY, TO MAINTAIN JET ENGINES, FOR AIRPLANE OPERATORS IN THE ASIA-PACIFIC REGION, VIA JAPAN TURBINE
TECHNOLOGIES, WHICH IT FORMED IN APRIL 1988, WITH NIPPON STEEL CORPORATION. (JAL) HAS 33.4% INTEREST, WHEREAS (P&W) ACQUIRED NIPPON STEEL'S 66.6%. THE COMPANY HAS 97 EMPLOYEES.
2 ORDERS 767-300ER'S & 8 ORDERS 777-200ER'S, INCLUDING TRADE-IN OF 10 MD-11'S.
DECEMBER 2000: 747-446 (1262-27645, JA8921) DELIVERY. 747-246F FREIGHTER CONVERSION, COMPLETED (635-23389, JA8169).
TOP WORLD AIRLINES 1ST 9 MONTHS TRAFFIC (RPK) (BILLION):
1 UAL 154.29; 2 AAL 143.211; 3 DAL 133.04; 4 NWA 97.47; 5 BAB 90.35; 6 CAL 78.55; 7 JAL/AFA/DLH 67.38; 8 USA 56.07; 9 SIA 52.77; 10 SWA 50.48.
JANUARY 2001: PARTNERSHIP AGREEMENT WITH (IBM) JAPAN, TO BOOST INFORMATION TECHNOLOGY (IT) STRATEGY, INCLUDING "LARGE-SCALE OUTSOURCING," OF (IT) SYSTEM DEVELOPMENT, OPERATIONS & MAINTENANCE, BY (IBM) JAPAN, WORKING WITH JAPAN AIRLINES (JAL)'S INFORMATION TECHNOLOGY (IT) SUBSIDIARY. WILL PROGRESS, TO EQUITY PARTICIPATION, AND ASSIGNMENT OF (IBM) PERSONNEL, TO JAPAN AIRLINES (JAL) INFORMATION TECHNOLOGY (IT).
ACQUIRES REMAINING 20% OF JALWAYS (JAI), FOR 100%.
SWITCHES FROM (P&W) TO (GE) ENGINES, FOR 3 NEW 767-300ER'S, AND 8 ORDERS 777-200'S.
TOP WORLD AIRLINES 2000 TRAFFIC (RPM) (BILLION):
1 UAL 126.88; 2 AAL 116.51; 3 DAL 107.78; 4 NWA 79.1 5 BAB 73.88; 6 CAL 62.31; 7 DLH 58.52; 8 AFA 57.04; 9 JAL 55.30; 10 USA 46.83; 11 SIA 43.99; 12 ACN 42.38; 12 SWA 42.2.
FEBRUARY 2001: NIGHT CHARTERS FROM TOKYO (HANEDA), TO GUAM, HONOLULU, PALAU, AND SAIPAN. ADDS F SERVICE, OSAKA - ANCHORAGE - LOS ANGELES (LAX), AND OSAKA - HONG KONG.
SIGNS UP FOR BOEING SPARES, GLOBAL AIRLINE INVENTORY NETWORK (GAIN), WHERE BOEING WILL MANAGE >70,000 EXPENDABLE, AIRFRAME, SPARE PARTS.
MARCH 2001: PLANS BY 1ST QUARTER 2004, TO INCREASE FREGHTER FLEET, FROM 10 747-200F'S TO 12 (INCLUDING WET-LEASED). JAPAN AIRLINES (JAL) GROUP BY 1ST QUARTER 2004, TO RETIRE ITS 17 DC-10/10 MD-11'S, & 4 737-200'S, AND OPERATE TOTAL 173 AIRPLANES, VS CURRENT 171. 1 DC-10-40 (349-47855), SOLD TO WI AIRCRAFT LEASING.
APRIL 2001: CODE SHARE WITH AIR FRANCE TO PARIS - DUSSELDORF/HAMBURG.
18,535 EMPLOYEES (INCLUDING 2,694 (FC), 7,828 (CA)).
FISCAL YEAR (FY) 2000 = +$332.8 MILLION (+18.8%).
737-446 (JA8994), HAS "PHOENIX EXPRESS" MARKINGS, AND IS USED EXCLUSIVELY, ON FLIGHTS BETWEEN TOKYO AND MIYAZAKI. PAINTS NEW, 2ND, DISNEY INSPIRED, 50TH ANNIVERSARY, LIVERY, BASED ON THE DESIGN THEME, OF "ROMANCE" AND THE CAMPAIGN NAME OF "SWEET." 747-400D (JA8904), IS DEEP PINK, AND FEATURES FAMOUS DISNEY COUPLES, INCLUDING MICKEY & MINNIE MOUSE, ALADDIN & JASMIN, THE LITTLE MERMAID & PRINCE ERIC, BEAUTY & THE BEAST, PETER PAN & WENDY, AND CINDERELLA & PRINCE CHARMING. NEXT DESIGN, WILL BE "FAMILY," AND FEATURE BAMBI & HIS MOTHER, PINNOCHIO & GEPPETO, DUMBO & MRS JUMBO, SIMBA & MUFUSA, AND PONGO, PERDITA & THEIR DALMATION PUPPIES. ALL CAN BE SEEN ON THE JAPAN AIRLINES (JAL) WEBSITE AT:
JUNE 2001: STARTS 10-YEAR, INFORMATION TECHNOLGY (IT) PARTNERSHIP, WITH IBM JAPAN, VALUED AT $664 MILLION.
LAST YEAR'S DOMESTIC MARKET SHARE: 1 ALL NIPPON (ANA) 42.5%; 2 JAPAN AIR SYSTEM (JAS) 21.9%; 3 JAPAN AIRLINES (JAL) 21.8%; 4 AIR NIPPON (ANK) 6.5%.
50TH YEAR ANNIVERSARY!
PAINTS 747-446D (844-25213, JA8083 "JAL DREAM EXPRESS") WITH DISNEY CHARACTERS ON BLUE FUSELAGE AND "JAL 50TH ANNIVERSARY" ON TAIL. PARIS AIR SHOW, $525M, +3 ORDERS 777-200ER (FEBRUARY 2003).
JULY 2001: 1 747-446 (1280-27646, JA8922) DELIVERY.
AUGUST 2001: JAPAN AIRLINES (JAL) STARTS AN E-(MRO), BUSINESS SECTION, AND MANAGEMENT MANDATES THAT (JAL) GROWS 15 - 30%/YEAR, BY MODELING THEMSELVES, ON LUFTHANSA TECHNIK (LTK) (DLH).
DOMINIQUE BOUCHET, EXECUTIVE HEAD CHEF OF HOTEL DE CRILLON, PARIS, CREATES NEW MENUS, AND FEATURE DISHES, FOR EUROPE TO TOKYO, BUSINESS FLIGHTS, TO COMMEMORATE JAPAN AIRLINE'S (JAL)'S 50TH ANNIVERSARY.
767-346 (224-23963, JA8268), LEASED TO JAPAN TRANSOCEAN AIR (SWL).
OCTOBER 2001: JAPAN AIRLINES (JAL) 1ST 9 MONTHS = 55.73B (RPK) TRAFFIC; 11.08M (PAX).
NOVEMBER 2001: JAPAN AIRLINES (JAL), JAPAN'S LEADING AIRLINE, IS TO MERGE WITH JAPAN'S 3RD-RANKED AIRLINE, JAPAN AIR SYSTEM (JAS), TO FORM THE WORLD'S 6TH LARGEST CARRIER. ISAO KANEKO, (JAL), WILL BE PRESIDENT AND HIROMI FUNABIKI, (JAS), CHAIRMAN OF NEW VENTURE. BY SPRING 2004, MERGED COMPANY WILL CUT -5,000 JOBS (-10%).
747-246 (196-20530) SOLD TO ORIENT THAI (OTH). 747-246B (407-22064, JA8140) LEASED TO JAPAN ASIA (JAA).
DECEMBER 2001: 5 ORDERS (FEBRUARY 2003) 767-300ER'S (CF6-80).
JANUARY 2002: (JAL)'S ENGINEERING & MAINTENANCE, PLANS TO INSTALL SAP'S R/3 APO INTERPRISE, SOFTWARE, OVER THE NEXT 2 YEARS. THEY ARE IN PHASE 2, DESIGN PROTOTYPING, OF A 3-PHASE DEVELOPMENT, & IMPLEMENTATION PROJECT, FOR THE SAP-BASED SYSTEM. PLANNING TO ADD A DOCUMENT MANAGEMENT SYSTEM (DMS), AS A REPOSITORY, FOR THEIR OEM TECHNOLGY INFORMATION, AND AS A REPLACEMENT FOR THE BOEING (PMA). DMS LINKAGE, TO THE SAP APO SYSTEM, IS PLANNED FOR JANUARY 2003. THIS PROJECT IS CURRENTLY CONSULTED BY PRICEWATERHOUSECOOPERS, & ASSISTED BY "CCC" FROM DENVER, COLORADO.
"AIR TRANSPORT WORLD" NAMES JAPAN AIRLINES (JAL) "AIRLINE OF THE YEAR," FOR 2002. IT PRAISED (JAL) FOR "REMAKING ITSELF INTO AN EFFICIENT, AGGRESIVE, COMPETITOR."
2001 = 67.62 BILLION (RPK) TRAFFIC; 13.64M (PAX).
2001 TOP 50 WORLD AIRLINES - TRAFFIC (BILLIONS) (RPM):
1 UAL 116.60; 2 AAL 106.15; 3 DAL 97.60; 4 NWA 73.11; 5 BAB 64.24; 6 AFA 59.54; 7 CAL 58.76; 8 DLH 56.76; 9 JAL 50.77; 10 USA 45.93; 11 SWA 44.50; 12 SIA 42.76; 13 QAN 42.14; 14 ACN 41.49; 15 KLM 35.76; 16 ANA 33.16; 17 CAT 27.81; 18 TII 27.43; 19 IBE 25.64; 20 KAL 23.73; 21 ALI 22.45; 22 MAS 22.29; 23 AMW 19.06; 24 VAA 17.65; 25 VAR 16.02; 26 CHI 16.00; 27 EAD 14.37; 28 SAS 14.26; 29 ANZ 13.54; 30 SAA 12.70; 31 SVA 12.56; 32 BEJ 12.39; 33 ASA 12.23; 34 JAS 10.06; 35 THY 9.35; 36 AMX 8.51; 37 PAL 8.36; 38 GIA 8.15; 39 CMA 7.99; 40 ELA 7.79; 41 GUL 7.65; 42 PIA 7.24; 43 AIN 7.10; 44 TAP 6.43; 45 EGP 5.53; 46 OLY 5.24; 47 AUL 5.06; 48 FIN 4.93; 49 IND 4.52; 50 CQT 4.51.
747-100 (20532) SOLD TO ORIENT THAI (OTH).
FEBRUARY 2002: NEW NAME OF MERGED, JAPAN AIRLINES (JAL) AND JAPAN AIR SYSTEM (JAS), IS "JAPAN AIRLINES SYSTEM," BUT (JAL) AND (JAS) WILL OPERATE INDEPENDENTLY UNTIL EARLY 2004, WHEN IT WILL BE MERGED INTO 3 SUBSIDIARIES: JAPAN AIRLINES INTERNATIONAL; JAPAN AIRLINES DOMESTIC; AND JAPAN AIRLINES CARGO.
IN SUMMER, NEW JAPAN AIRLINES (JAL) FLIGHT, FROM NARITA TO HANOI (3/WEEK), TO XIAMEN (2/WEEK), +3 NEW DOMESTIC FLIGHTS TO TOYAMA (3/DAY), OKAYAMA (3/DAY), AND YAMAGUCHI - UBE (2/DAY).
STATES ITS 1992 UNPAINTED 747-200F, HAS SAVED $20,000/YEAR IN FUEL (WITHOUT INCREASE OF CORROSION), VS PAINTED AIRPLANE, WHICH IS 200 KG HEAVIER.
FREIGHTER SERVICE TO AMSTERDAM (747-200F).
MARCH 2002: AS PART OF (JAL)/(JAS) INTEGRATION, WILL INVEST #20B YEN/YEAR, IN INFORMATION TECHNOLOGY (IT). AS PART OF SYSTEM STRATEGY, WILL FOLLOW FROM THE CUSTOMER'S VIEWPOINT, WITH INTRODUCTION OF E-TICKETING, INFORMATION TECHNOLOGY (IT), SUPPORTING MANAGEMENT TOOLS, SUCH AS ERP (ENTERPRISE RESOURCE PLANNING).
APRIL 2002: IN JULY 2002, TOKYO HANEDA TO TOYAMA, THE CAPITAL OF THE TOYAMA PREFECTURE, IN CENTRAL HONSHU, FACING THE JAPAN SEA (767, 2/DAY).
16,552 EMPLOYEES (INCLUDING 2,628 FLIGHT CREW (FC); & 6,532 CABIN ATTENDANTS (CA)).
MAIN BASES: TOKYO INTERNATIONAL (HND); TOKYO - NARITA INTERNATIONAL (NRT).
(JAL)'S 34 CLASSIC 747'S, FLIGHT DECKS WILL BE UPGRADED, WITH CMC ELECTRONIC (FORMERLY CANADIAN MARCONI), CMA-900, FLIGHT MANAGEMENT SYSTEMS, & CMA-2012 SATELLITE COMMUNICATIONS (SATCOM) ANTENNAE.
MAY 2002: CODE SHARE WITH AEROMEXICO (AMX), FROM VANCOUVER, CANADA, TO MEXICO CITY (747, 2/WEEK NONSTOP).
JAPAN AIRLINES (JAL) GROUP FISCAL YEAR (FY) 2001 = -$285.1 MILLION, BUT PROJECTS PROFIT FOR THIS YEAR: 13.37 MILLION INTERNATIONAL PASSENGERS (15.14M).
747-246F (579-22990, JA8161) CONVERTED. 767-346ER (875-32886, JA601J) DELIVERY.
June 2002: Expands code share agreement with Thai Airways International (TII), to include domestic flights in Japan and Thailand.
2001 Top World Airlines by Traffic (RPK) (Billion):
1 UAL 187.67; 2 AAL 170.88; 3 DAL 163.66; 4 NWA 117.66; 5 BAB 106.27; 6 CAL 98.37; 7 AFA 94.42; 8 DLH 86.70; 9 JAL 84.27; 10 USA 73.93; 11 SWA 71.59; 12 SIA 69.15; 13 QAN 67.89; 14 ACN 67.03; 15 KLM 57.85; 16 ANA 56.90; 17 CAT 44.79; 18 TII 44.04; 19 IBE 41.30; 20 KAL 38.45; 21 MAS 38.31; 22 ALI 36.52; 23 SWS 32.98; 24 TWA 31.85; 25 AMW 30.69.
2001 Top World Cargo Operators (Billion) (FTK):
1 FED 11.05; 2 LUB 7.08; 3 UPS 5.96; 4 SIA 5.88; 5 KAL 5.57; 6 AFA 5.12; 7 KLM 4.64; 8 JAL 4.19; 9 BAB 4.033; 10 CHI 4.030; 11 NCA 3.93; 12 CAT 3.89; 13 CLX 3.77; 14 EVA 3.28; 15 UAL 2.80; 16 NWA 2.79; 17 AAL 2.56; 18 MTH 2.40; 19 AAR 2.38; 20 DAL 2.31; 21 MAS 1.84; 22 SWS 1.79; 23 TII 1.67; 24 QAN 1.57; 25 AHK 1.55.
Japan Airlines (JAL) Group = -$282.31 Million (+$330.81 Million): 84.27B (RPK) (-11.5%); 68.5% LF; 37.18 Million (PAX) (-3.7%); 4.19 Billion (FTK) (-11.1%); 16,552 EMPLOYEES (-5.3%).
July 2002: Tokyo (HND) to Yamaguchiube (767-300, 2/day) and to Okayama (737-400, 3/day). To Amoy (Xiamen) (3/week) (its 7th, Chinese destination). Has flights to China, from 6 Japanese cities: Tokyo, Osaka, Nagoya, Fukuoka, Kagoshima, & Okinawa. Chinese destinations are: Beijing, Shanghai, (HKG), Qingdao, Dalian, Tianjin, & Amoy. In October 2002, will add Kunming, Guangzhou, & Xi'an, all previously operated by (JAS). In August 2002, code share with Vietnam Airlines (VIE), to Hanoi (4/week) and with QANTAS (QAN), to Melbourne (daily). In September 2002, code share with China Eastern (CEA), in response for increasing demand for travel to eastern China, including Tokyo Narita to Shanghai and Qingdao, as well as Osaka - Kansai/Shanghai - Pudong, plus Nagoya to Shanghai.
Invests $64 Billion to build new, international airport, in Chubu region, the location of major industry, and Nagoya, Japan's 3rd largest city. When completed, it will eventually replace Nagoya's International Airport. It is located on a 1,170-acre site, including 3,000 m runway, 200,000 sq m, passenger terminal building, including 86 check-in counters, 9 baggage carousels, and a main terminal building, with center pier, extending through the front of the building, with wings to the North and South.
At Farnborough Air Show, (JAL) signs Letter of Intent (LOI) to buy Boeing Connexion's, in-flight, Internet & e-mail system, and install it, on 10 long-range airliners, operating routes to Europe. Connexion uses an antenna, developed in the mid-1980's, to beam signals, at speeds, comparable to an office Internet connection.
767-346ER delivery to start replacing DC-10's and MD-11's. Now has 26 767's with +7 on order. Has ordered 11 777-200's and 8 777-300's. The 777-300's are intended to replace 747-100SR's, 563Y, used on domestic routes. An original order for 5 777-200's has been converted to 2 777-200 and 3 777-300's.
September 2002: Code share with Emirates (EAD) from Osaka (Kanzai) to Dubai on (EAD) 777-200, (4/week).
2 orders (2/04) 747-400F. 777-246ER (417-32890, JA702J) delivery. MD-11 (552-48571) sold to Boeing (TBC) for (UPS) conversion to freighter.
October 2002: (JAL) and (JAS) integrated their operations under a new holding company: JAPAN AIRLINES SYSTEM CORP, becoming the 6th largest airline group in the world. Isao Kaneko, President and (CEO), of the new holding company, which has 122 employees. The Misuho Financial Group is the largest stockholder, followed by Tokyu Corporation, which was the top (JAS) shareholder. As of March 2002, the new (JAL) Group conglomerate has 52,493 employees. It operates 287 airplanes of 16 different types, and serves 172 destinations in 30 countries, including 59 in Japan.
Japan Airlines (JAL) changed its corporate image. An "Arc of the Sun" theme retains the familiar "JAL" font, but replaces a red and grey stripe, with a red, silver, and black swoosh, through the initials. (JAL)'s stylized crane symbol, that mimics the rising sun on the tail, has given way to a red sun outlined in silver, that nearly eclipses the tail. The basic airplane color is off-white. The red was chosen because it is the symbolic color of Japan, and incorporates "the two key concepts of Skyward Dreams and Joy." Silver expresses professionalism, quality, and innovation, while black represents dependability, and versatility. (JAS)'s coloring was expressed in a blue, red range, and yellow hash mark.
In the 2nd integration phase, starting in April 2004, the 2 companies will completely merge their operations into 3 group firms: Japan Airlines International Company; Japan Airlines Domestic Company; & Japan Airlines Cargo Company.
In keeping with the "new" Japan Airlines (JAL), changes its fleet strategy to match its new corporate identity, by replacing 3 747-100SR's (short range), 25C, 538Y, airplanes with 777-300's on high-density, short-duration flights in city pairs such as Tokyo - Sapporo.
Contract with Boeing Technical Services & Modification unit to upgrade its fleet of 30 747-200/-300 passenger airplanes to Future Air Navigation Systems (FANS-1) rules in Europe and the Pacific region. The initiative is to meet required navigation performance standards in Europe, maximize airspace utilization, and reduce landing weather minimums.
Code share with Air New Zealand (ANZ), Nagoya to Auckland, NZ (2/week).
Airlines around the world are suffering losses and job cuts, while airport operators, incl Japan's Narita airport, the world's costliest hub, are still raking in the profits (IATA) report). In the wake of the 9/11/01 terrorist attacks, airlines lost -$18B in 2001, and expect to lose another -$12 Billion in 2002. Although shortly after, in October 2001, airports in Singapore and Hong Kong cut landing rates by -10 to -15%, Narita was a stubborn holdout, charging a fee of # 2,400 yen a tonne, or about $7,755 for each 747 airplane, 2.3 times the cost in Hong Kong, 3.9 times that in Singapore, and 14.9 times the cost at London's Heathrow (LHR).
Japan's Ministry of Land, Infrastructure & Transport is emphasizing development of the new, Centrair International airport to open in Nagoya in 2005, and upgrades to Tokyo's Haneda airport, in its $4.1 Billion airport improvement budget for 2003. $1.1 Billion is for construction of a 4th runway at Haneda (Asia's busiest airport, even though it serves mainly domestic Japanese routes. $388 Million has been allocated for Aichi-Japan International Airport - Centrair. Other major projects include $114M for Narita, and $367 Million for a 2nd runway for Osaka Kansai International Airport. Other funding goes for noise abatement, and air traffic contol upgrades.
November 2002: Last 6 months ending September 2002 Japan Airlines (JAL) Group = +# YEN 33.7B/+$279.4 Million (+105.4%).
(JAL) is 1st airline in Japan to introduce automatic self-check-in machines for international passengers at Narita. The (JAL) kiosks are available to passengers with e-tickets and those holding automated ticket & boarding (ATB) tickets. The machines, which use English & Japanese, are compatible with (IATA) common-use, self-service standards, for international automatic check-in. The machines can also register frequent flyer miles simultaneously, and check passport validity.
In early 2003, (JAL) will participate in "e-check-in" tests (with New Tokyo International Airport Authority, NTT Docomo, & Matsushita Electrical Industries) at Narita, including biometric technology, specifically identifying passengers by facial recognition, and by checking the iris of a passenger's eye.
Japan Airlines (JAL) deploys wireless, web-based, "Enigma 3C" software, to let 5,000 engineers and mechanics (MT) service personnel have access to repair and service info from airport gates, thus keeping (JAL)'s fleet of 150 airplanes operational, as often as possible. The system enables ground maintenance etchnicians (MT) personnel, to complete minor maintenance tasks, fast enough to avoid delays, and prevents airplanes from being removed from service unnecessarily, for repairs that could have been completed at the gate. The information is kept up-to-date, via downloads direct from the Original Equipment Manufacturers (OEM)s. The newest version of "3C" makes those downloads simpler, by up-dating only the info that's changed, thereby reducing the drain on bandwidth and performance. It might employ wristwatch-sized personal digital assistants (PDA)s, made possible by the new 3C software for flight line operations.
MD-11 (566-48574), sold to Boeing (TBC).
January 2003: In February 2003, Fukuoka - Shanghai (767-300, 5/week). Will take over all Japan Airlines Domestic (JAS)'s Osaka (Itami)/Tokyo (Haneda) - Fukuoka/Naha/Sapporo services.
Japan Airlines (JAL) Cargo achieves (ISO) 14001 certification (1st Japanese cargo facility to receive accreditation).
February 2003: As part of the (JAL)/(JAS) merger, both have split flights at 9 domestic airports where they both operate. Japan Airlines Domestic (JAS) will operate all flights from Akita, Hiroshima, Kumamoto, Nagasaki, Miyazaki, Kagoshima, and Kochi. Japan Airlines International (JAL) and its JAL Express (JEX) subsidiary, will fly from Naha and Komatsu.
Cathay (CAT) Cargo, Japan Airlines (JAL) Cargo, Qantas (QAN) Freight, & Singapore Airlines (SIA) Cargo signed an (MOU) to partner in a new e-business portal (working title is "Air Cargo Exchange") that is to go online by mid 2003. At the heart of the new portal will be a joint operation provided by the Cargo Community Network Singapore and Global Logistics System Hong Kong, also known as Traxon Hong Kong. Initially, customers will be able to make allotment and free-sale bookings, conduct tracking and tracing, as well as review flight (schedules of the 4 carriers. Interestingly, Japan Airlines International (JAL) & Singapore Cargo), are also affiliates of the "WOW" cargo alliance, including Scandinavian (SAS) Cargo & Lufthansa Cargo (LUB). Cathay (CAT) & Qantas (QAN) are linked to the Oneworld alliance.
777-246ER (427-32891, JA703J), delivery.
March 2003: In April 2003, code share with Swiss International (CSR), Tokyo to Zurich.
$500K, contract to STG Aerospace, to install SafTGlo photoluminescent floorpath markings on 25 767's. Selected Rockwell Collins avionics for its new 5 767-300ER's.
Fiscal Year (FY) 2002 = -# Yuen 22.6B/-$68.44 Million: 83.54 Billion (RPK) traffic; 33.38 Million (PAX); 4.4 Billion (FTK). Will eliminate -3,600 jobs over 3 years.
April 2003: Made further cuts to its international schedule now -12%, with -17% in May 2003. Flights to Hong Kong have been slashed -75% becuase of Severe Acute Respiratory Syndrome (SARS) virus outbreak.
May 2003: Japan Airlines Systems Corp, the holding company for (JAL) & JAS) Fiscal Year (FY) 2002 = +# Y11.6 Billion/+$100 Million (-# Y35.7 Billion).
2002 = +$96.4 Million (NET PROFIT) (-$286.5 Million): 83.73 Billion (RPK) (TRAFFIC) (+5.5%); +4.8% (ASK) (CAPACITY); 69.1% LF (LOAD FACTOR) (+.4); 33.6 Million PASSENGER (PAX) (+4.4%); 4.34 Billion (FTK) (FREIGHT TRAFFIC) (+7.3%); 16,184 EMPLOYEES (-1%).
2002 TOP 25 WORLD AIRLINES - TRAFFIC - (BILLION) - (RPK)
1 (AAL) 195.81; 2 (UAL) 176.15; 3 (DAL) 152.66; 4 (NWA) 115.91; 5 (BAB) 99.71; 6 (AFA) 96.80; 7 (CAL) 95.51; 8 (DLH) Grp 88.57; 9 (JAL) 83.54; 10 (QAN) 75.23; 11 (SWA) 73.05; 12 (SIA) 71.12; 13 (ACN) 69.42; 14 (USA) 69.42; 15 (KLM) 58.89; 16 (ANA) 52.97; 17 (CAT) 49.04; 18 (TII) 48.51; 19 (KAL) 41.80; 20 (IBE) 40.47; 21 (MAS) 36.90; 22 (AMW) 31.98; 23 (SAS) Grp 30.91; 24 (EAD) 30.17; 25 (ALI) 29.84.
2002 TOP 25 WORLD FREIGHT CARRIERS - (BILLION) - (FTK):
1 (FED) 13.20; 2 (LUB) 7.16; 3 (UPS) 6.62; 4 (KAL) 6.25; 5 (SIA) 6.08; 6 (AFA) 4.87; 7 (CAT) 4.85; 8 (CHI) 4.60; 9 (JAL) 4.39; 10 (CLX) 4.16; 11 (BAB) 4.12; 12 (KLM) 3.99; 13 (EVA) 3.28; 14 (NWA) 3.24; 15 (AAL) 2.93; 16 (UAL) 2.79; 17 (AAR) 2.75; 18 (NCA) 2.21; 19 (POA) 1.97; 20 (EAD) 1.96; 21 (MAS) 1.92; 22 (BEJ) 1.88; 23 (TII) 1.824; 24 (DAL) 1.823; 25 (ACN) 1.58.
2 777-200 deliveries.
July 2003: 16,500 employees.
(JAL) System Fiscal Year (FY) 2002 = +$95.24 Million (-$285.96M): (JAL): 83.54 Billion (RPK) traffic (+1.9%); 71% LF; 33.63 Million (PAX) (+3.3%); 4.39B (FTK) (+6.7%); (JAS): 16.02B (RPK) (-1.2%); 62.8% LF; 21.43 Million (PAX) (-1.5%); 176.40 Million (FTK) (-.2%).
DC-10-40 (367-47857) sold to (NI) Aircraft Leasing. MD-11 (610-48774, JA8589), sold to Boeing (TBC).
August 2003: 2nd Quarter (JAL) Group = -# Y 77.28 Billion/-$642.3 Million, from the effects of the Iraq war and (SARS) outbreak: 1.9 Million PAX (-46%) (3.5 Million) international PAX; -39% (RPK); -18.1% (ASK); -5% (FTK). 11.2 Million Domestic (PAX) (+2%) (10.9 Million); +1% (RPK); -5% (FTK) International Cargo.
As part of the continuing integration of Japan Airlines (JAL) and Japan Air System (JAS), (JAL) Group is consolidating passenger handling subsidiary companies operated by the 2 carriers at 5 major domestic airports in Japan and amalgamating 4 regional reservation and ticketing centers in October 2003. 5 (JAL)-operated passenger handling companies at Sapporo, Sendai, Tokyo, Osaka, and Fukuoka, will merge with 4 (JAS) companies at Sapporo, Sendai, Itami, and Fukuoka. The 5 new companies formed as a result, will be renamed (JAL) Sky. 4 regional (JAL) domestic reservation & ticketing centers located at Sapporo, Tokyo, Osaka, & Fukuoka, will merge with 3 (JAS)-owned facilities under the new company name (JAL) Navia. They will be subsidiary companies of (JAL) Sales Company Ltd, the domestic passenger sales & marketing unit of (JAL) Group.
Lufthansa Cargo (LUB) unveiled its 1st airplane in "WOW" livery, an MD-11F, representing the WOW Cargo alliance, encompassing Japan Airlines (JAL) Cargo, Lufthansa Cargo (LUB), (SAS) Cargo, and Singapore Airlines Cargo. Has the biggest air cargo partnership with a 20% market share. In September 2003, will inaugurate an exclusive common cargo terminal in Cargo City North, Frankfurt, to handle alliance shipments. Each of the 4 cargo carriers since July 2003, has been setting up to 10% of each's capacity for the express shipments of the other 3 partners. They have agreed on a unified Information Technology (IT) support and common quality service and handling standards in order to guarantee the uniformity and reliability of their services.
To retire 4 747 "Classics."
767-346ER (915-33495, JA606J) delivery.
September 2003: Japan Airlines International (JAL) to expand its network into China with additional codeshare operations with China Eastern (CEA), China Southern (GUN) and a new connection service with Hainan Airlines (HNA). Total number of (JAL) flights to China, including these codeshares, will increase from 182/week to 202/week. In November 2003, agreement with (HNA) on connecting flights Beijing - Chengdu & - Xi'an (daily) for (JAL) passengers flying to and from these cities from Tokyo, Osaka and Nagoya via the Chinese capital. In November 2003, code share with China Eastern (CEA), Nagoya to Shanghai (daily), & Sapporo - Shanghai(2/week) operations by (CEA). In December 2003, code share with (GUN), Osaka - Guangzhou (5/week), Tokyo - Beijing (2/day), Tokyo - Shanghai (3/week), and Osaka - Shenyang (3/week). Shenyang is the 11th city in China to be served by the (JAL) network.
$850, +7 orders (February 2004) 767-300ER's (CF6-80C2B7F), 2 class, 237 PAX.
October 2003: 767-346ER (917-33496, JA607J) delivery. MD-11 (599-48579, JA8588) sold to Boeing (TBC) for United Parcel Services (UPS).
November 2003: Japanese Ministry of Land, Infrastructure & Transport permits daily charter service between the capitals Tokyo (Haneda) and Seoul (Kimpo), by 4 airlines: Japan Airlies International (JAL) & All Nippon (ANA) from Japan, and Korean Air (KAL) & Asiana (AAR) from Korea.
Japan Airlines System Corp, the holding company for (JAL) & (JAS) merger last 6 months = -# Y 57.59 Billion/-$532.1 Million (+# Y 37.1 Billion). Projects full year = # Y 65 Billion.
DC-10-40 (47822) sold to NI Aircraft Leasing.
January 2004: 4th Quarter = +# Y3.7 Billion/+$35.1 Million (-# Y53.8 Billion/-$454 Million): International traffic -3.2% (RPK). Last 9 months = -# Y53.8 Billion. Projects Fiscal Year (FY) 2003 = -# Y65 Billion.
Becomes 3rd carrier after American (AAL) and Air France (AFA) to agree to become a "developmental partner" for Boeing's Airplane Health Management (AHM) system, in what will be a 4 month pre-release test. (AHM) gathers data about airplane systems and relays it in real time via datalink to technical personnel on the ground, similar to the Airman system developed by Airbus for its fly-by-wire airplanes.
In April 2004, code share with Air Tahiti Nui (NUI), Tokyo Narita - Papeete (A340-300).
In December 2004, will be 1st Asian airline to offer Connexion by Boeing introducing inflight Internet and e-mail for all classes, with the 1st equipped airplane operating London-Tokyo.
February 2004: Code share with Air France (AFA), Nagoya - Paris (CDG) (777-200ER). Code share with British Airways (BAB), London Heathrow (LHR) - Hamburg, Stuttgart.
In April 2004, (JAS) identity disappears. In June 2004, parent company becomes Japan Airlines Corporation, with Isao Kaneko, Chairman & (CEO); Toshiyuki Shinmachi, President; Hidekazu Nishizuka, Executive VP; Takashi Mazuko, retires; Katsuo Haneda, President (JAL) International; Minoru Morikawa, retires; Mitsuo Komatsubara, President JAL Domestic (JAS); and Hajime Kato, Executive VP.
March 2004: In April 2004, Osaka (KIX) - Hanoi.
Now projects Fiscal Year (FY) 2003 = -# Y 89 Billion/-$803 Million. Plans to eliminate -4,500 ground-based jobs up from previous plans for -3,600.
Enters into a "long-term exclusive supply agreement" with (HEICO) Corporation that will accelerate (HEICO)'s efforts in developing a broad range of airplane component and engine parts slated for (FAA) approval. (JAL) agreed to purchase newly developed parts and most applicable (FAA)-approved replacement parts on an exclusive basis. In addition, (JAL) designated (HEICO) Aerospace as its premier supplier of non-Original Equipment Manufacturer (OEM) (FAA)-approved replacement parts. (HEICO) also has partner positions with Lufthansa (DLH), American (AAL), United (UAL), Delta (DAL), and Air Canada (ACN).
767-346ER (919-33497, JA608J) delivery.
April 2004: Integration of Japan Airlines (JAL) and Japan Air Service is completed with the launch of two new airlines, JAL International (JAL), and JAL Domestic (JAS). Instead of referring to the two companies separately, it will operate under the brand name "Japan Airlines."
Japan Airlines (JAL) Group (CEO), Isao Kaneko stated "We have completed the initial task. We have integrated networks, sales, back-office functions, airport operations and Information Technology (IT). In the long term, we will consolidate fleet composition and restructure flight operations, but these are long-term targets and we are not committed to any detailed plans. We will also work on integrating maintenance, cabin service and cockpit crew organizations but we have intentionally left cabin crew (CA) and cockpit (FC) integration separate because they require adjusting work conditions and pay scales. The new airlines will continue to operate based on the cockpit groups of the former (JAL) and (JAS)."
The integration costs in Fiscal Year (FY) 2004 & 2005 will amount to # Y36 Billion/$344.9 Million, but the total integration effect will result in annual savings of # Y63 Billion from 2005 and on.
The new (JAL) Group has a staff of 54,885 and a fleet of 286 airplanes that will operate on 176 domestic, 200 international and 45 cargo routes.
1st Quarter = 20.16B (RPK) traffic; 8.54 Million (PAX); 1.12 Billion (FTK) freight traffic.
767-346ER (921-33845, JA609J); & 777-246ER (475-32894, JA707J) deliveries.
May 2004: Fiscal Year (FY) 2003 Japan Airlines Corp = # Y 88.62 Billion/-$789 Millions (+$ Y 11.65 Billion): due to a loss of 3 Million passengers on international routes resulting from the (SARS) outbreak and the Iraq war: -20% international (RPK) traffic, & -2.7% in cargo revenue.
747-246B (21679) leased to Japan Asia (JAA). MD-11 (48578) sold to Boeing (TBC).
June 2004: In July 2004, Tokyo (Narita (NRT) - Singapore (777-300ER, 9F, 63C, 220Y). In August 2004, code share with Korean Airlines (KAL), from regional cities in Japan to Seoul, including Komatsu - Seoul (4/week), Sapporo - Seoul (daily), & Niigata - Seoul (5/week).
British Airways (BAB) and Qantas (QAN) implemented the latest release of Sabre AirFlite SlotManager. Delta Airlines (DAL); Lufthansa (DLH); El Al (ELA); & Japan Airlines International (JAL) also use the new system.
777-246ER (32895, JA708J) & 777-346ER (32431, JA731J) deliveries.
July 2004: When the new Chubu International Airport (Centrair) opens in February 2005, Japan Airlines International (JAL) will begin Nagoya - Guangzhou. Will also boost cargo services with Hong Kong - Nagoya - USA (747F, 3/week). Intends to increase capacity on its Centrair - Narita feeder service (2/day). One of these flights is operated as an international service while the other, a domestic roundtrip that is currently operated with a CRJ-200, will be changed to a 737, 150 PAX.
2nd Quarter Japan Airlines (JAL) Group = -# Y 40.7 Billion/-$356 Million (-# Y 77.2 Billion - (SARS): +10.3% fuel costs; +76% international (RPK) traffic; 10.5 Million domestic (PAX) (-6%).
747-346ER (423-32430, JA732J) delivery.
August 2004: Plans to integrate new domestic passenger services using (IC) card technology, including a ticketless check-in service developed by (JAL) for domestic airports in Japan. The (JAL) (IC) Check-in service will allow cardholders to board domestic flights without a ticket or boarding pass, they simply "touch and go" with their cards at the boarding gate. The service will begin at Tokyo Haneda this winter and later will be installed at other domestic airports.
MD-11 (583-48577) sold to Boeing (TBC).
September 2004: (ARINC)'s Asia/Pacific division was awarded contracts to Korean Air (KAL), Japan Airlines (JAL), Asiana Airlines (AAR), and All Nippon Airways (ANA) with (ARINC)'s iMuse common-use passenger technology at Korea's Gimpo International Airport.
In winter, Tokyo Narita to Fairbanks (747-400, 3/week charter nonstop).
767-346ER (925-33846, JA610J) & 777-246ER (489-32896, JA709J) deliveries. DC-10-40 (265-46967) sold to (NI) Aircraft Leasing.
October 2004: Confirms with Boeing (TBC) that it will convert 3 of its 747-400 passenger airplanes into Special Freighters and has options for another 4 conversions.
In December 2004, will offer passengers a high-speed inflight Internet connection service dubbed (JAL) SkyOnline. Initially the service which is built on Connexion by Boeing's broadband Internet system, will be available on 747-400 flights between Tokyo and London. It intends to install the system on airplanes operating on other long-haul routes between Japan and both Europe and the Americas. Will charge $29.95 for unlimited use of the service during a flight, or $9.95 for a 30-minutes usage starter package with rates of $0.25/minute thereafter.
Has achieved a better-than-expected burn fuel rate of between 0.5% & 0.8% on its 777-300ER's, "a significant result and all the more welcome in current circumstances" stated a (JAL) spokesperson. It is understood the increase in performance over Boeing (TBC)'s test figures has been achieved because (TBC)'s test airplane flew in a more demanding profile than airline operators.
2 747-446F's (1351-33748, JA401J; 1352-33749, JA402J), deliveries for total 747 fleet of 77.
November 2004: In February 2005, Nagoya (Chubu/Centrair) - Guangzhou, Paris (CDG). In April 2004, code share with (AAL), Chicago - Nagoya (777-200, 236 PAX, daily).
Last 6 months ending September 2004 = +# Y 82.9 Billion/+$784.3 Millions (-# Y 57.59 Billion): international traffic +32.3% (RPK); +40% (PAX); domestic -7.2% (PAX).
767-346ER (927-33847, JA611J), delivery. MD-11 (559-48573) sold to (TBC).
December 2004: 30/20 orders (February 2008) 787's, including short/medium-range, 787-3, 300 PAX, and long-range 787-8, 250 PAX, to replace its fleet of 58 767's & A300's. The 787's will enter service 1 year before Tokyo Haneda's 4th runway comes into operation, significantly reducing (JAL)/(JAS)'s need to operate larger airplanes. With a 40% increase in takeoff and landing slots at Haneda, (JAL)/(JAS) will improve customer passenger convenience, enhance operational efficiency, through a better match of supply to demand and expand its network.
January 2005: In conjunction with the Ministry of Land, Infrastructure & Transport, in February 2005, at Tokyo Narita, (JAL) will participate in a test of 3-Passports - - new cards containing passengers' biometric data. Passengers taking part in the test will be issued an "(SPT) card" that has an embedded IC chip containing the holder's biometric data for use at verification machines for check-in, security checks and immigration control. Participants will be selected from (JAL)'s frequent flier members. (JAL) will also participate in tests using experimental (IC) "bio-passports" containing the holder's facial image that will be issued by the Ministry of Foreign Affairs for use by diplomatic passport holders.
To expand its codeshare agreement with Korean Air (KAL), with March 2005 Nagoya Chubu International Airport to Pusan (777, 2/day), increasing codeshare flights to 64 on 2 routes. In February 2005, code share with Air France (AFA), Paris - Nagoya (777-200).
Japan Airlines (JAL) Group 4th Quarter = +# Y 3.7 Billion/+$35.6 Million (+# Y 3.7 Billion). Last 9 months = +# Y 79.2 Billion (-# Y 538 Billion). Projects Fiscal Year (FY) 2004 = +# Y 23 Billion.
February 2005: Has moved all its international and most of its domestic operations from Nagoya Komaki to the new 24-hour Chubu International Airport, known popularly as Centrair, after it opened February 17, 2005. The new $7.8 Billion airport, half owned by private companies including the locally based car giant Toyota, is built on an island reclaimed from Ise Bay, and expects to draw 12M passengers/year.
New Nagoya - Paris (daily), code share with Air France (AFA). In April 2005, codeshare with American Airlines (AAL), Nagoya - Chicago (daily nonstop).
Selects Teledyne Controls to supply its Integrated Data Management Unit (iDMU) for retrofit installation on 16 767-200/-300's. The (iDMU)'s will replace the legacy DMU's currently in service, providing enhanced airplane condition monitoring and recording capabilities.
March 2005: In July 2005, will expand to 13 cities in China served by 29 routes and 237 flights/week. When codeshares are included this jumps to 20. Has code shares with China Southern (GUN), Hainan (HNA), and China Eastern Airlines (CEA).
(JAL) Group 2004 forecast = +# Y27 Billion/+$260 Million. Its 3-year restructuring plan includes -1,400 additional layoffs by 2007 on top of the -4,500 it had previously said would be eliminated by the end of 2006. This will be achieved through a hiring freeze and natural attrition.
Toshiyuki Shinmachi, President will succeed Isao Kaneko, (CEO) in June 2005 at the (AGM), who will retain the position of Group Chairman.
May 2005: Expands its inflight Internet service to flights between Tokyo and New York, provided by Connexion by Boeing.
Isao Kaneko, 67, will quit as Chairman & Director at end of this month, taking responsibility for the carrier's deteriorating safety record. Japan Airlines (JAL) had been ordered by Japan's Transport minister to improve its safety record and was put through a safety audit.
Japan Airlines Corp Fiscal Year 2004 = +# Y 30 Billion/+$284.2 Million (-# Y88 Billion): +18% fuel costs; 14.7 Million international passengers (+25.5%); 44.7 Million domestic passengers (-3.7%). Projects 2005 = +# Y17 Billion.
Japan Airlines International (JAL) operates scheduled and non-scheduled international services.
15,869 employees (including 2,592 Flight Crew (FC); 6,817 Cain Attendants (CA); & 6,460 Maintenance Technicians (MT)).
(IATA) Code: JL. (ICAO) Code: JAL.
Parent organization/shareholders Japan Airlines (JAL) (100%).
Owns: JALways (JAI) (100%); JAL Express (JEX) (100%); Japan Asia Airways (JAA); J-Air (100%); & Japan Transocean Air (SWL) (51.1%).
Alliances: Aeromexico (AMX); Air France (AFA); Air New Zealand (ANZ); Air Tahiti Nui (NUI); Alitalia (ALI); American Airlines (AL); British Airways (BAB); Cathay Pacific (CAT); China Eastern Airlines (CEA); China Southern Airlines (GUN); Emirates (EAD); HainanAirlines (HNA); Iberia Airlines (IE); Korean Air (KAL); Qantas Airways (QAN); Swiss (CSR); Thai Airways (TII); (THY) Turkish Airlines; & Vietnam Airlines (VIE).
Main Base: Tokyo Narita International airport (NRT).
Hub: Tokyo International airport (HND).
Domestic, scheduled destinations: Fukuoka; Fukushima; Hakodate; Hiroshima; Kagoshima; Komatsu; Kumamoto; Matsuyama; Nagoya; Okinawa; Osaka; Sapporo; Tokyo; & Toyama.
International, scheduled destinations: Amsterdam; angkok; Beijing; risane; Busan; Chicago; Dalian; Delhi; Denpasar Bali; Frankfurt; Guam; Guangzhou; Hangzhou; Hanoi; Ho Chi Minh City; Hong Kong; Honolulu; Jakarta; Kuala Lumpur; Las Vegas; London; Los Angeles; Manila; Mexico City; Milan; Moscow; New York; Paris; Qingdao; Rome; Saipan; San Francisco; Sao Paulo; Seoul; Shanghai; Singapore; Sydney; Taipai; Tianjin; Vancouver; Xi'An; & Xiamen.
June 2005: 777-346ER (32432, JA733J), delivery.
July 2005: In August 2005, will double its daily charter flights Haneda - Gimpo to boost the total number of flights between Japan and Korea from 230 to 244 per week. In February 2006, opening of Kobe Airport with new services to Tokyo Haneda, Sapporo, Sendai, Okinawa, Kumamoto, and Kagoshima.
In September 2005, cargo code share with Lufthansa Cargo (LUB), Frankfurt - Nagoya Chubu International Airport (MD-11F, 2/week).
(JAL) Group 2nd Quarter = -# Y 38.2 Billion/-$341.7 Million (-# Y40.7 Billion): +1.2% (RPK); -5.2% (FTK); international passengers (+1.6%); domestic passengers (0.3%). Fiscal year 2005 projected = +# Y 17 Billion.
Has plan of restructuring of its network and cost improvements in response to higher fuel prices. Key to the shift in strategy is a greater role for low-cost subsidiary JALways (JAI), which will take over more routes, e.g. in October 2005, Tokyo - Manila, Tokyo - Brisbane, Tokyo - Denpasar (Bali), & Osaka - Denpasar.
Will retire +3 747's than originally planned. In fiscal year 2005, will retire 4 747's, 1 747F, 4 DC-10's, 3 A300's & 2 YS-11's. Will add 3 767-300ER's, 2 777-200ER's, 2 777-300ER's & 2 CRJ200's. JAL Group will operate 281 airplanes by end of fiscal year. 3 orders 767-300ER's and 3 orders 767-300ERF's.
777-246ER (33395, JA710J) & 777-346ER (32433, JA734J) deliveries.
August 2005: (JAL) Airlines Corporation = 54,053 employees (+155%).
Japan Airlines Group (JAL)/(JAS) selected Sabre's AirMax Revenue Manager solution for managing revenues from international operations. Sabre said AirMax "is expected to generate additional revenue from a sophisticated and proven solution set of revenue management functions and business process services."
Japan Airlines (JAL) and Mexicana Airlines (CMA) reached a codeshare agreement based on connections in Los Angeles that will expand (JAL)'s network in Mexico to four cities and provide Mexicana (CMA)with access to Tokyo and Osaka. Subject to government approval, the accord will come into effect October 2005. Implementation of a frequent-flier program partnership also is being discussed and will be put into effect once its scope and terms are finalized.
767-346ER (33849, JA613J & 777-246ER (33396, JA711J) deliveries.
September 2005: Narita International Airport Corporation finalized a previously announced agreement with airlines on a new system that will reduce landing charges significantly at the airport. The charges, effective October 1, will be based upon noise levels generated by airplane types. Fees for the quietest airplanes (Category A) will be more than -31% lower than the present level, but even the noisiest airplanes (Category F) will see a reduction of -15%. Airplanes such as the A340 and 777 fit into Category A, while the 767 is in category B, and the 747-200 is in category F. Overall, landing charges will be reduced by an average of -22%; however, the airport is eliminating free aircraft parking and will begin charging for the use of boarding bridges and arrival baggage handling facilities "in line with other airports around the world." It estimated the total package of new charges will cut -$55 million a year from airlines' costs.
Japan Airlines (JAL) announced a number of new code share agreements. It will expand its agreement with Cathay Pacific (CAT) between Japan and Hong Kong to include a daily roundtrip between Hong Kong and Fukuoka beginning October 3 that will be operated by (CAT). The flight is routed via Taipei but (JAL) passengers can travel only between Fukuoka and Hong Kong. Also, (JAL) and Korean Air (KAL) will expand their codeshare to include (KAL)'s 2x-daily flights between Fukuoka and Seoul. The deal becomes effective October 3, subject to government approval. Finally, (JAL) and Malev (HGA) inaugurated a codeshare agreement covering Malev beyond flights. (JAL) will put its code on Malev (HGA) flights from Budapest to Frankfurt. The agreement will take effect October 30, subject to government approval.
Boeing is moving closer to the launch of the 747-400ADV with the announced sale of four 747-400Fs to Nippon Cargo Airlines (NCA). According to insiders at the manufacturer, the next delivery slots are 747-400 airplanes. This year, Boeing has sold 24 747-400s and now has a backlog of 30 net of five cancellations logged in 2005.
Cargolux (CLX) has announced its intention to order 10/20 747-400ADV freighters. Other carriers identified with the program are China Airlines (CHI), Malaysia Airlines (MAS), Japan Airlines (JAL), Singapore Airlines (SIA), and British Airways (BAB).
October 2005: (JAL) Group announced yesterday that Japan Airlines Domestic (JAS) will be merged into Japan Airlines International (JAL) effective October 1, 2006. (JAL) Sales, which handles group travel sales, will transfer its activities to JAL International (JAL) six months earlier, on April 1.
The existing corporate structure consisting of separate domestic and international airline organizations was formed in April 2004 to smooth the merger between Japan Airlines (JAL) and Japan Air System (JAS). (JAL) expects that combining the units will speed decision-making, streamline management and improve communications between head offices and service branches.
As a result of the consolidation, Japan Airlines International (JAL) and Japan Airlines Domestic (JAS) will integrate their personnel and wage systems, "achieving greater work efficiency due to the removal of intra-group trading, procedures and adjustments among the integrated companies."
Japan Airlines Corp (JAL), the holding company, will be retained; "However, the organization of the holding company will be slimmed down as much as possible."
(JAL) said the integration itself will not generate any extra income or affect costs beyond the objectives and reforms presented in the current medium-term corporate plan announced on March 10. About -100 jobs will be eliminated, resulting in savings of ¥1 billion ($8.8 million), while costs of about ¥500 million will be incurred due to Information Technology (IT) systems integration, taxes and legal registration fees.
The company's three-year restructuring plan unveiled in March includes -1,400 additional layoffs and other cost-cutting measures intended to shed ¥75 billion in costs by the end of Fiscal Year (FY) 2007, ultimately rising to ¥100 billion or more per year.
Boeing said Japan Airlines (JAL) has become the first licensed user of its Maintenance Performance Toolbox, a secure online service offering electronic assistance and integration for aircraft maintenance and troubleshooting. (JAL) partnered with Boeing in developing the product. The Toolbox features visual navigation methods and databases intended to facilitate prevention, repair and recordkeeping and is available on any device with an Internet connection.
Japan Airlines Group appointed Katsuhiko Nawano to serve on the boards of (JAL) International (JAL) and (JAL) Domestic (JAS) with responsibility for China business activities for (JAL) International (JAL). He also will handle special assignments at the direction of President Toshiyuki Shinmachi in both (JAL) International (JAL) and (JAL) Domestic (JAS). Nawano, 58, is a former senior official at the Ministry of Land, Infrastructure and Transport. He joins the (JAL) Group boards at Managing Director level.
Japan Airlines (JAL) on October 30, will begin code sharing with China Eastern Airlines (CEA) on three domestic routes: Shanghai - Chengdu, Shanghai - Chongqing, and Shanghai - Shenzhen, a total of 42 weekly flights. (JAL) already code shares with Hainan Airlines (HNA) on seven weekly flights between Beijing and Chengdu. It also operates JAL China Express with Hainan Airlines (HNA) from Beijing to three Chinese cities and on six routes from Beijing in cooperation with China Southern Airlines (GUN).
(JAL) announced a reduction in frequency on its Japan - Indonesia flights October 30 - December 22 due to traffic declines following the October 1 terrorist attacks in Bali. (JAL) currently provides three daily direct services to Indonesia: Tokyo - Denpasar, Osaka - Denpasar and Tokyo - Jakarta. It will continue to serve Denpasar and Jakarta from Tokyo on a daily basis by consolidating flights and will reduce its Osaka - Denpasar service from seven to 3x-weekly.
The world's largest nonaligned airline is independent no more - - Japan Airlines (JAL) said yesterday it will apply to join Oneworld, a decision that was "warmly welcomed" by the alliance. In terms of revenues, (JAL) Group is the No 3 airline company in the world, trailing Lufthansa (DLH) Group and Air France (AFA) - (KLM) Group.
The link is not unexpected given the close association between (JAL) and Oneworld anchors American Airlines (AAL) and British Airways (BAB) as well as with Qantas (QAN) and Cathay Pacific (CAT), also members of the partnership.
"Becoming a member of Oneworld, while maintaining our bilateral agreements, would provide our customers with even greater convenience, comfort and value through a more extensive global network, integration of e-ticketing, the linkage of frequent-flier mileage programs, the mutual use of each other's services such as lounges and by the creation of seamless travel," (JAL) Group CEO Toshiyuki Shinmachi said in a statement.
(JAL) will bring a lineup of 206 airports in 34 countries to the Oneworld network, which covers 600 cities in 135 countries. It will expand Oneworld's existing network by +10%, adding +68 unique destinations including +56 in Japan, +five in China and Guam.
American Airlines (AAL) will be supporting (JAL) through the membership application process as its prime oneworld sponsor, assisted by Cathay Pacific (CAT).
"We are very pleased that (JAL) has recognized the value that membership of Oneworld offers and look forward to working with [it] to complete the agreements, procedures and processes that are necessary before we can issue a formal invitation to join," Oneworld (ONW) Managing Partner, John McCulloch stated.
Last week, the alliance (ONW) announced its first member from the Middle East, as Royal Jordanian (RJA).
747-146B (23150, JA8164), withdrawn from use (WFU). 747-246B (22064), sold to Kalitta Air (KAC).
November 2005: Japan Airlines Group blamed stagnant traffic in key markets and soaring fuel prices for a -¥12.04 billion/-$102.3 million net loss for the first half ended September 30 compared to income of +¥83 billion last year.
(JAL) warned that it expects to show a full-year loss of -¥47 billion. It previously forecast a small profit of +¥17 million, but high fuel prices and flat traffic in key markets will push it into the red for the year to March 31.
Total operating revenues for the six-month period were up +3.4% to ¥1.11 trillion but operating costs jumped +10.9% to ¥1.1 trillion, resulting in half-year operating income of +¥15.7 billion.
The airline said that while transpacific, Korean and Taiwanese routes showed steady demand, interest in routes in Southeast Asia, Europe and Oceania was stagnant. Overall international passenger traffic rose just +0.3% (RPK) and the number of passengers carried was 7,230,244, virtually unchanged from the year-ago period. Domestic traffic also was stagnant, with passenger numbers down -1% to 22,286,276 and (RPK)s off -1% as well.
Fuel costs in the period averaged $69.60 per barrel versus $44.40 last year. (JAL)'s fuel bill was up a massive +32% to ¥181.3 billion. Prior-year results benefited from a ¥34.4 billion credit linked to airplane purchases, while this year there was an extraordinary loss of -¥15.6 billion due to a reassessment of the valuation of assets including buildings and land.
On the heels of yesterday's announcement, (JAL) Group unveiled a series of corporate reforms designed to create "an airline group with enhanced customer appeal and a stronger corporate base in time for 2009." It will spend approximately ¥60 billion to enhance safety over the next five years, including strengthening Information Technology (IT) systems, adding maintenance technicians and improving jet airplane Maintenance Repair & Overhaul (MRO) facilities.
From 2006, the airline will restructure international routes and reduce capacity, expanding routes served by mid-size and small airplanes, especially on Japan - China service. In 2009, it will expand its fleet in order to capitalize on the commencement of international service from Haneda Airport and slot increases at Narita. Additionally, it will invest ¥65 billion in service-related equipment. It will introduce 23 new airplanes through March 2009, comprising 19 737-800s and four 787s, and retire 30 747-200s and 747-300s.
On the labor front, (JAL) board members will take a -23% to -40% pay reduction while monthly salary cuts for employees of (JAL) International, Domestic, Corporation and Sales will average -10% from 2006 through March 2008. The company said it intends to hold negotiations with labor unions.
Japan Airlines (JAL) chose the (GEnx) to power up to 50 787-3s and dash 8s, comprising 30 firm and 20 option airplanes. (JAL) receives its first 787 Dreamliner in 2008. (GE) valued the firm engine order at more than $700 million.
Separately, (JAL) said it will "temporarily resume" normal flight operations between Japan and Indonesia over the Christmas and New Year holiday period. It reduced flight frequency and changed routings on its Japan - Indonesia flights at the end of October owing to a significant decrease in passenger demand following the October 1 Bali terrorist attack.
3 DC-10-40's (47824; 47825; 47826), sold to Vivaldi Overseas.
December 2005: Oneworld (ONW) member Finnair (FIN) and soon-to-be-member Japan Airlines (JAL) agreed to codeshare on (JAL)'s domestic routes and Finnair (FIN)'s European routes starting this month. Finnair (FIN)'s code will be added to (JAL)'s routes between Osaka and Sapporo, from Fukuoka to Osaka and Tokyo and from Tokyo Haneda to Osaka. (JAL)'s code in turn will be added to Finnair (FIN)'s Helsinki - Amsterdam and Helsinki - Frankfurt routes. Both companies will explore possibilities to codeshare on Finnair (FIN)'s routes to Japan and (JAL)'s routes from Japan to other Asian destinations.
Japan Airlines (JAL) is forecasting a marginal decrease in the number of (JAL) Group passenger reservations for the December 28 - January 9 Japanese New Year vacation period. (JAL) reported 290,525 international passenger reservations, -2% down on the same period last year. While bookings on transpacific, Korea, Southeast Asia and Oceania routes increased - - up respectively by +14.8%, +6.8%, +5.5% and +0.7% compared to the same period last year - - there was a reduction in passengers to Honolulu, Guam, Bali and China. China traffic is forecast to be -11% lower due to anti-Japanese sentiment. (JAL) Group domestic passenger reservations number 1,600,684, off -1.2% from last year.
Arger Enterprises partnered with Japan Airlines (JAL) on a five-year development and purchasing contract estimated to be worth about $20 million in PMA parts and battery and ground support equipment.
Japan Airlines (JAL)/(JAS) became the first carrier to implement Boeing's Airplane Health Management system, which monitors the condition of an airplane in flight and relays information in real time to prepared maintenance crews at the gate. (JAL)/(JAS) uses it on 747s and 777s.
All Nippon Airways (ANA) and Japan Airlines (JAL)/(JAS) will remove high-pressure turbine (HPT) blades from 88 (PW4000)s powering their respective 777 fleets. (JAL)/(JAS) will spend ¥4.3 billion/$36.8 million to replace (HPT)s in 46 engines while (ANA) will replace blades in 42 engines for ¥5.2 billion, Mainichi Daily News reported. Pratt & Whitney has been working with operators for some time to address the problem with the blades, which are subject to corrosion. Increased inspection and gradual replacement has been the preferred strategy, but two (ANA) 777s experienced inflight engine shutdowns (IFSD) last fall while a (JAL) airplane had an (IFSD) in August. All airplanes diverted and landed safely and the problems were traced to the faulty blades.
Japan Airlines (JAL)/(JAS) is the customer for five 777-300ERs and a 767-300F that previously were listed on the Boeing orders website as unidentified.
747-146B (23150) sold to Logistics Air (LGC), and Niger registered as (5U-ACF). 767-346ER (33851, JA614J), delivery.
January 2006: (JAL) Group had mixed results during the Japanese New Year vacation period from December 28 to January 9. Total number of passengers traveling on international routes was down -5.1% while domestic passenger numbers rose +1%. Internationally, (JAL) recorded strong increases on transpacific and Korean routes, up +4.2% and +4.3% respectively. Despite soft traffic to Indonesia, Southeast Asian routes showed signs of recovery with passenger numbers rising +1.6%. Load factor on transpacific routes was particularly high at 91.2% LF. A reduction in flights to Honolulu and Guam and the suspension of services to Saipan last October accounted for a decrease in traffic to Pacific tourist destinations. Likely owing to concern resulting from anti-Japanese demonstrations in China last year, traffic to China fell -4.1%, much less than the -12.1% drop forecast.
Full year 2005 = Passenger traffic 95.45 Billion (RPK) (11th highest in world); Freight traffic 4.83 Billion (FTK); 51.14 Million passengers.
(IATA) (ITA) announced the launch of its (IATA) Catering Quality Assurance (ICQA) program, which it called "the industry's first global food processing safety and quality assurance" initiative. The association will partner with Medina Quality Assurance Services, which will audit catering facilities in compliance with (ICQA) standards on a contractual basis for program participants. Medina will conduct two types of audits: Unannounced on-site Validation Audits and Web-based e-Audits, which are "customized questionnaires designed to identify deficiencies." An (ICQA) Council will be established to oversee the program, approve the audit schedule and update standards, guidelines and audit procedure. (IATA) said Air Canada (ACN), Aeroflot (ARO), Japan Airlines (JAL), (KLM) and Northwest Airlines (NWA) have confirmed their participation in (ICQA).
Japan Airlines will offer Connexion by Boeing's four channels of live television to passengers equipped with compatible personal computers beginning January 23. Programming will be available on airplanes equipped with (JAL) In-flight Internet Service.
Japan Airlines (JAL) announced it is increasing the number of 747-400BCFs it has on order to eight with four options, up from its October 2004 commitment of three firm orders and four options.
Value of the contract was not disclosed. (JAL)'s first 747-400 passenger-to-freighter conversion entered modification at Taikoo Aircraft Engineering in Xiamen last month and will be delivered in May.
Boeing said it now has 37 firm orders and 29 options for the airplanes. (JAL) also ordered four 767-300Fs last year.
February 2006: Soaring fuel costs, "adverse publicity" over recent safety-related operational events and declining demand on services to China resulting from lingering feelings about anti-Japanese protests in April all factored into another rough quarter for Japan Airlines (JAL)/(JAS), which reported a -¥11 billion/-$92.5 million loss for the three-month period ended Dec 31, up from a loss of -¥3.7 billion in the previous year's third fiscal quarter. Revenues rose +21% to ¥556.9 billion but expenses climbed +33.9% to ¥573.5 billion, leading to a -¥16.6 billion operating loss compared to a -¥3.8 billion loss in the 2004 quarter.
In conjunction with the results, (JAL)/(JAS) released its "Route, Frequency and Fleet Plan" for the coming fiscal year, which it said is designed to build a more "profit focused" network intended to return its international services to the black.
Plans to produce an annual income improvement of ¥8 billion include increased frequencies from Tokyo to markets including Chicago and Taipei, other seasonal increases, decreases to London and Bangkok and suspension of the Tokyo - Las Vegas and Osaka - Los Angeles services. Its JALways (JAI) subsidiary will take over operations on several routes throughout Southeast Asia including flights from Tokyo to Jakarta, Vietnam and Sydney. A host of alterations to its domestic route structure were announced as well.
During Fiscal Year (FY) 2006 (JAL) will retire six 747s, three A300s and four YS-11s and add two 777-300ERs and one 767-300ER for international operations, three 737-800s for domestic service and three Bombardier Dash 8s. Its fleet at the conclusion of (FY) 2006 will number 275 airplanes. Cargo flights will increase with introduction of two 747-400CFs.
For the nine-month period ended December 31, (JAL) slipped into the red with a net loss of -¥23 billion compared to a +¥79.2 billion profit in the year-ago period. Revenues rose +3.6% to ¥1.67 trillion and expenses climbed +9.3% to ¥1.67 trillion, resulting in an operating loss of -¥800 million compared to a profit of +¥83 billion last year. Fuel costs increased +30% to ¥284 billion. Consolidated passenger traffic declined -1.2% to 75.93 billion (RPK)s, capacity dropped -0.8% to 113.42 billion (ASK)s and load factor fell -0.3 point to 66.9% LF.
Tokyo Narita handled 31.5 million passengers in 2005, a +1% rise over the previous year. Narita said passenger numbers were up slightly to and from China, Europe and North America. The number of international passenger arrivals rose +3% to 8.04 million.
Japan Airlines (JAL) and Oneworld exchanged a Memo of Understanding (MOU) as a first step in the airline's effort to join the global alliance. The (MOU) was signed in Vancouver a little more than three months after (JAL) indicated its intention to join and "sets out a framework" for the remainder of the process. It is expected that (JAL), sponsored by American Airlines (AAL), will be a full member within a year, expanding Oneworld's network by +68 destinations or approximately +10%.
Japan Airlines announced fleet and route modifications for the period from Apr 1st 2006 through Mar 31st 2007. Highlights are:
Tokyo - Chicago = From 10 to 14 flights a week (March 26th);
Tokyo - Los Angeles = From 7 to 8 flights a week (April 1st), 2 flights on Sat;
Tokyo - Moscow = From 2 to 3 flights a week (June 4th to September 24th);
Tokyo - Taipei = From 21 to 28 flights a week (March 26th) by JALways (JAI);
Tokyo - Vancouver = From 7 to 11x-weekly (July 1st to August 31st)
Hiroshima - Seoul = 3 767 flights a week (stops March 24th);
Komatsu - Seoul = 4 767 flights a week (stops March 26th);
Tokyo - Las Vegas = 3 747-400 flights a week (stops September 30th);
Osaka - Los Angeles = 7 747-400 flights a week (stops October 1st).
Tokyo - Bangkok = From 21 to 14 flights a week (March 26th);
Tokyo - London = From 14 to 7 flights a week (March 26th).
Osaka - London = 747-400 to 777-200ER (October 1st);
Osaka - Taipei = 747-200 to 747-400 (March 26th) 7 flights a week;
Tokyo - Amsterdam = 747-400 to 777-200ER (October 29th) 7 flights a week;
Tokyo - Paris (CDG) = 747-400 to 777-300ER (September 1st) 7 flights a week.
Tokyo - Anchorage - Chicago = New 2x a week (June 1st);
Tokyo - Anchorage - Chicago = From 2 to 4 a week (September 1st);
Tokyo - Anchorage - Los Angeles = New 1x a week (March 26th);
Tokyo - Los Angeles = New 1x a week nonstop 747-400F (June 5th);
Tokyo - Anchorage - New York = From 3 to 4 a week (June 4th);
Tokyo - Anchorage - San Francisco (SFO) - Los Angeles (LAX) = Discontinued 2x a week (January 1st);
Tokyo - San Francisco - (LAX) = New 2x a week 747-400F (January 1st);
Tokyo - Bangkok - Manila = New 2x a week (September 1st);
Tokyo - Seoul = New 1x a week (June 2nd);
Tokyo - Taipei = From 4 to 5 a week (November 4th).
Japan Airlines (JAL)/(JAS) (CEO) Toshiyuki Shinmachi, who was among three top executives asked to resign by four (JAL)/(JAS) board members on February 10, has no intention of leaving and issued a statement saying he found the incident "regrettable," adding that it "undermines the public trust at a time when (JAL)/(JAS) Group must join hands and hearts" to improve perception of its safety standards and enact corporate reforms.
(JAL)/(JAS) confirmed that the four board members, buttressed by a petition "signed by several (JAL)/(JAS) managers of VP level," called for the resignation of Shinmachi, Executive VP Katsuo Haneda and Senior Managing Director Hidekazu Nishizuka. Shinmachi said he felt responsible for the board members' conduct and offered an apology to (JAL)/(JAS) stakeholders. "Top management feels that it is our duty to finalize the next Mid-Term Corporate Plan, which is the reforming process, clarify the course of action to take, complete integration into one company in the true sense and build a new organizational structure," he said. "I ask everybody to fulfill their respective responsibilities and ignore any such petition asking for my resignation."
March 2006: Embattled JAL Group (JAL)/(JAS) (CEO), Toshiyuki Shinmachi, who stood fast against an attempted coup by four board members last month, lost his battle to keep his position amid rising discontent and agreed yesterday to relinquish the (CEO) title and take over as group Chairman. Shinmachi will be replaced as (CEO) following the June shareholders meeting by Senior VP Finance & Purchasing, Haruka Nishimatsu, a board member who joined the airline in 1972. Pending confirmation, Nishimatsu will be promoted to Senior Managing Director on all three (JAL) boards (JAL)/(JAS), effective April 1.
Executive VP, Katsuo Haneda and Senior Managing Director, Hidekazu Nishizuka, whose resignations were demanded last month in the board's petition, also will be "retiring" from the boards of (JAL) Corporation, (JAL) International and (JAL) Domestic (JAS). A host of additional retirements and promotions occurred in preparation for the reunification of (JAL)/(JAS)'s International and Domestic companies on October 1. The number of (JAL) (JAL)/(JAS) board members, and executive officers fell from 41 to 36.
Burdened by the boardroom upheaval that cost (CEO) Toshiyuki Shinmachi his job this week, widening losses that reached -¥11 billion/-$94.9 million last quarter and several well-publicized safety-related incidents, Japan Airlines (JAL)/(JAS) released an extended five-year, medium-term business plan designed to "win back the trust and confidence" of stakeholders and customers, create a more unified and open corporate culture and return the airline to profitability in the fiscal year ending March 31, 2007. The plan runs through March 2011, the end of (JAL)/(JAS)'s 2010 fiscal year, to include the planned expansion of Tokyo Haneda, which will add a fourth runway, an international terminal and 30,000 - 40,000 operations per year in 2009 as the airport transitions to international service.
The plan will focus on implementing recommendations by the Safety Advisory Group, an external committee established last year, and enhancing passenger service at a cost of ¥125 billion; streamlining (JAL)/(JAS)'s network to focus on profitable services and routes popular with business travelers and introducing smaller, more fuel efficient airplanes, while increasing load factor and yield, and generating cost savings amounting to -¥119 billion per year by the end of Fiscal Year (FY) 2010. The carrier expects the "rebuilding" phase of its plan to conclude by the time the expanded Haneda is operational.
For the fiscal year ending March 31, 2007, (JAL)/(JAS) forecasts a profit of +¥3 billion on operating revenues of ¥2.3 trillion. It expects those figures to rise to +¥17 billion and ¥2.37 trillion respectively two years later. By the end of (FY) 2010, it expects net earnings of ¥55 billion on revenues of ¥2.44 trillion. Its interest-bearing debt, estimated at ¥1.98 trillion at the end of the current fiscal year, will fall to ¥1.38 trillion by plan's end.
The company's ¥125 billion investment will break down as follows: ¥8 billion for a new 777 dock at Tokyo Narita, a large-engine test center and a cargo weighing system; ¥25 billion for (RNAV) systems and spare engine reserves; ¥28 billion for a new maintenance Information Technology (IT) system and a safety information database and distribution system; ¥1 billion for a safety promotion center, educational equipment and improved flight simulators; ¥25 billion for inflight passenger service enhancements, Oneworld membership measures and cargo business expansion; ¥16 billion for operational improvements including distribution, scheduling and e-commerce development, and ¥24 billion for airport facility and deicing equipment upgrades.
Japan Airlines (JAL) and Korean Air (KAL) are expanding their codeshare operations between the countries beginning March 26 when the number of routes and services will jump from seven routes and 104 flights per week to nine routes and 266 weekly flights. On a one-way basis, the two airlines will codeshare on an additional 84 weekly flights on the Tokyo Narita - Seoul route, 56 on the Kansai - Seoul route and 28 on the Nagoya Chubu - Seoul route.
Separately, (JAL) will increase its 10x-weekly Narita - Chicago O'Hare service to 2x-daily from March 26. Flights are aboard 747-400s.
Boeing and Japan Airlines (JAL)/(JAS) signed an Integrated Material Management agreement giving the airframer responsibility for purchasing, inventory and logistics for (JAL)/(JAS)'s expendable airplane parts. Boeing and other suppliers own the parts, which are stored at a location convenient to the customer. (JAL)/(JAS) will pay for parts on an as-needed basis.
Fleet composition will change from the current 279 airplanes spread over nine types, to 296 airplanes of eight types by the end of the plan. Average airplane age will decrease from 11.6 years to 10.4 years. (JAL)/(JAS) hopes eventually to operate only 5 - 6 types.
With the 2006 (FIFA) World Soccer Cup licking off in Germany in June, (JAL)/(JAS) is showing its support for the Japanese National Football team by painting three airplanes with a special design entitled "Samurai Blue 2006." The design is of a gigantic blue Japan National Football team shirt being passed over the heads of supporters, accompanied by the wording "Samurai Blue 2006." On international flights, the special livery will be displayed on 777-300ER airplane (JA732J) operating on Japan Airlines (JAL)'s daily nonstop between Frankfurt & Narita, and a 747-400. The design will also appear on a 777-300 operating on (JAS) domestic routes. The "Samurai Blue 2006" livery will be displayed on these airplanes over a period stretching from February until July, when the final will be played out in Berlin. (JAL)/(JAS) has been an official supporting company of the Japanese national football team since 1999, providing transportation assistance to team members and officials. Japan was the first team to qualify for the tournament and will compete with Australia, Croatia & five-times winners Brazil in the group stage of the competition.
747-246BSLR (22745), and 747-246F (21681), sold to Kalitta Air (KAC).
April 2006: Japan Airlines (JAL), which has been subject to scrutiny following several safety-related issues, announced the establishment of a 622 sq-m, ¥180 million/$1.5 million, Safety Development Center at Tokyo Haneda. The center will open April 24 and feature exhibits, items and documentation related to past incidents and accidents.
(JAL) and Hainan Airlines (HNA) will expand their codeshare agreement to include Hainan (HNA)'s daily flights from Beijing to Kunming and Xian.
777-346 (28397, JA8945), has "Samurai Blue 2006" markings - see photo.
May 2006: Japan Airlines Group (JAL)/(JAS) blamed sluggish traffic growth caused by "safety-related occurrences" and anti-Japanese sentiment in China for its inability to overcome rising fuel costs, resulting in a drastic reversal in financial fortunes and a loss of -¥47.2 billion/-$423.2 million in the fiscal year ended March 31 compared to earnings of +¥30 billion in Fiscal Year (FY) 2005. Group revenue grew +3.3% to ¥2.2 trillion, but operating expenses were up +7.3% to ¥2.23 trillion, dragging the company to a -¥26.8 billion operating loss compared to a +¥56.1 billion operating profit in the previous year. Passenger numbers were down -3.8% to 14.2 million while passenger traffic (RPK)s fell -2.2% to 67.4 billion and (ASK)s declined -2.3% to 97.2 billion.
(JAL)/(JAS) suspended services to some resort destinations and increased flights on popular business routes during the year. While traffic was steady to the USA, Korea and Taiwan, the carrier said demand to Europe and Southeast Asia dropped, and Chinese traffic was down -8%. On the domestic network, "individual passengers failed to grow, mainly due to safety-related occurrences." Domestic revenues fell -2.2% as capacity dipped -1.9%.
A +¥88.2 billion surge in fuel costs was a critical factor in (JAL)/(JAS)'s result. Staff costs grew +¥3.3 billion owing to changes in the retirement fund, while currency exchange losses hit -¥6 billion. Going forward, the airline is focused on further streamlining its network to focus on business routes, restructuring its fleet, and expanding its JALways (JAI) subsidiary, which operates 747s domestically and to Pacific destinations.
(JAL) Group (JAL)/(JAS) also is looking to its pending Oneworld membership to improve revenue streams. On the domestic front, the focus is on expanding Class J seating, introducing more 737-800 services to replace some 767s and A300s, and strengthening e-marketing initiatives. Both (JAL)/(JAS) and All Nippon Airways (ANA) have been phasing out domestic 747s in favor of 777-300s for some time.
Emirates Airlines (EAD) and Japan Airlines (JAL) agreed to expand their existing codeshare agreement effective June 1 to allow (JAL) to place its code on new Dubai - Nagoya Emirates (EAD) flights and Emirates (EAD) to place its code on (JAL) domestic flights from Nagoya to Fukuoka and Sapporo.
(JAL) said it will resume daily service from Tokyo Narita to both Bali and Jakarta on July 1 and from Osaka Kansai to Denpasar on July 13. It cut back on Japan - Indonesia services in October 2005, due to reduced demand, that it attributed to the October 1 terrorist bombing in Bali.
Japan Airlines (JAL) and Florida West International Airways (PAI), an all-cargo carrier, will launch a partnership June 3, that will enable (JAL) to add freight service to Dallas/Fort Worth (DFW) and Miami. Under the agreement, (JAL) will transfer cargo from Tokyo Narita and Nagoya to Florida West (PAI) airplanes in Atlanta for carriage onward to (DFW) or Miami. (JAL) operates 747F service from Narita and Nagoya to Atlanta, and plans to block 80 tons of space per week for the new service, which it is calling "Southern Flash." It currently uses third-party trucking operations to carry cargo to Dallas and Miami, but the partnership with Florida West (PAI) will allow for faster delivery. Miami-based Florida West (PAI) operates a 767-300F and a DC-10F.
Aerosim Technologies said Japan Airlines (JAL) signed an agreement for the supply of a Virtual Procedure Trainer for the A300-600ER.
Japan Airlines (JAL) took delivery of the second 747-400BCF in Xiamen. USA cargo carrier Kalitta Air (KAC) plans to acquire 10 747-400F freighters from Japan Airlines (JAL) to fuel its growth over the next few years. The Michigan-based carrier has reached agreement with (JAL) to purchase a single General Electric (CF6-80)-powered 747-400BCF for delivery in May 2009. It is also negotiating for the acquisition of a second 747-400 from (JAL) with a July 2009 delivery date. A further eight 747-400F freighters are expected to be sourced from (JAL), revealed Kalitta (KAC) VP & General Manager, D C Sanderlin. “We believe that (JAL) will have those available later.” He says the full batch of airplanes is expected to be delivered through 2011 and will fulfil the carrier’s anticipated capacity requirements.
“The technological advances of the 747-446BCF include significantly greater range and fuel efficiency over earlier model Boeing freighters, making it an ideal airplane for our global network,” said Kalitta (KAC) CEO, Connie Kalitta. He said the carrier’s first purchase of a 747-446BCF “marks a milestone for Kalitta Air (KAC), which is completing another year of record revenues and is solidly positioned for future growth”.
(JAL)’s first 747-446BCF underwent modification at China’s Taikoo (Xiamen) Aircraft Engineering. (JAL) has orders for eight conversions and four options. The first 747-446BCF was redelivered to Cathay Pacific (CAT) in December.
767-346ER (33850, JA615J), delivery.
June 2006: During July 2006, Japan Airlines (JAL) will resumes normal direct daily services between Japan and Indonesia. The airline will reinstate its direct daily flights between Tokyo Narita and Denpasar (Bali), and direct daily flights between Tokyo Narita and Jakarta on July 1st. From July 13th, (JAL) will also resume daily service between Osaka Kansai and Denpasar.
Japan Airlines (JAL) and Finnair (FIN) will expand their code share agreement to include 3x-weekly, (JAL)-operated flights from Nagoya Chubu to Sapporo and Fukuoka.
Japan Airlines (JAL) at a meeting in Paris, received a formal invitation to join the Oneworld alliance, seven months after the world's largest unaligned carrier announced its intentions. The mainline will be integrated by early next year and (JAL)/(JAS) Group members JALways (JAI), Japan Asia Airways (JAA), JAL Express (JEX), J-Air and Japan Transocean Air (SWL) will join as affiliate members. American Airlines (AAL) is (JAL)'s principal sponsor, assisted by Cathay Pacific Airways (CAT). (JAL) and its affiliates will add 47 destinations to Oneworld's network.
"Japan Airlines (JAL) and Oneworld have been able to conclude all necessary membership agreements extremely speedily, which signals excellent working relationships going forward," (JAL) (CEO), designate Haruka Nishimatsu said.
The carrier already has interline e-ticketing agreements in place with (AAL) and British Airways (BAB) and will link up with (CAT) within months. Remaining members, plus new recruits Malev Hungarian Airlines (HGA) and Royal Jordanian (RJA), will be online by the time (JAL) joins next year. Oneworld said it is the only alliance with interline e-ticketing among all its members.
Following Star Alliance's lead, Oneworld (ONW) will consolidate its operations at Tokyo Narita's Terminal 2 (T2). Most members of Star will operate out of T1. Qantas (QAN) and (JAL) already are housed in T2, and (AAL), Cathay (CAT) and Finnair (FIN) will relocate from T1 in 2007 and build their own lounges. (BAB) will remain in T1.
Narita spent $10 million to upgrade T2 last year. A $170 million investment starting this year will include a refurbishment of the check-in and security screening area, more user-friendly flight information displays, increased shopping areas and two new gates, bringing T2's total to 30.
All Nippon Airways (ANA) and Japan Airlines (JAL)/(JAS) face a limited 24-hour strike on June 21 by some pilot (FC) unions "over dissatisfaction with the management stance on career progression," among other issues. International flights will not be affected, but up to 25% of domestic flights for both airlines will be impacted.
Haruka Nishimatsu, 58, was confirmed as (JAL) Group (JAL)/(JAS)'s new President & (CEO), with former group (CEO), Toshiyuki Shinmachi confirmed as group Chairman. Shinmachi was pressured to relinquish the (CEO) title four months ago. Nishimatsu, 58, formerly was Senior VP Finance & Purchasing and has spent most of his working life at (JAL). "I adored airplanes. I had watched planes fly over Hamamatsu between Tokyo and Osaka since I was a small boy and was fascinated by them," he said. Well liked at (JAL), he will be hoping his enthusiasm helps turn the airline around after a series of highly publicized safety incidents and heavy financial losses. Meanwhile, the group board has increased its membership to 18 as it integrates the board of (JAL) Corporation with those of its two main operating companies, Japan Airlines International (JAL) and Japan Airlines Domestic (JAS), which are due to merge on October 1.
July 2006: Japan Airlines (JAL)/(JAS) said it plans to sell 700 million new shares in an effort to raise as much as $1.94 billion for airplane purchases and debt reduction. It said the sale will take place next month, and it is leaving open the option of selling another 50 million shares. "We're going to use the funds for expansion," (CFO), Yuichiro Kito said at a Tokyo news conference. "Rather than waiting for a turnaround in business, we decided to take action." (JAL)/(JAS) will determine an offer price for the share sale by July 21.
Separately, the airline established a new aircraft maintenance department to manage outsourced maintenance carried out overseas. It said it "will manage contracts, technology, quality control, training and parts inventories that up to now have been handled by (JAL)'s Haneda Airport-based maintenance and engineering business department." It will increase assigned staff from one to four at the maintenance centers of Taikoo Aircraft Engineering Company in China and Singapore Aviation Service Company. (JAL) has a stake in both centers, which perform heavy airframe maintenance and conversion work.
China and Japan reached an air services agreement that provides for a +20% increase in the number of passenger flights between the countries and a doubling of cargo services, Reuters reported. Thirteen carriers from each country will have access, up from the current six. The number of permitted flights will rise to 547 per week, with Chinese carriers operating 300.
Japan Airlines (JAL) will codeshare on Turkish Airlines (THY)'s restored 3x-weekly Osaka Kansai - Istanbul service.
777-346ER (32434, JA735J), delivery.
August 2006: Japan Airlines Group (JAL)/(JAS) appears to have made significant progress in its restructuring with a fiscal first-quarter loss of -¥26.7 billion/-$233.2 million set against sharply increased fuel costs, an improvement over the year-ago period's -¥38.3 billion loss. Over the past 12 years, (JAL) typically has posted a loss in the quarter ended June 30. All numbers in the recently completed quarter were positive. Operating revenues were up +3.7% to ¥522.2 billion and international traffic revenue rose +5.2%, reflecting a focus on high-profit and high-growth-rate routes. Cost-structure reforms limited the negative impact of a +11.6% increase in fuel costs and an unfavorable USA dollar-yen exchange rate. Operating expenses rose only +3.5% to ¥554.1 billion.
The company's international restructuring resulted in better numbers. Higher demand for first and business class travel and fuel surcharges combined to raise yields +11.2%. That was offset by a -5.8% decline in passenger numbers to 3.2 million brought about by a -11.6% reduction in (ASK)s due to network and fleet restructuring. International load factor climbed +4.6 points to 69.9% LF. On the domestic front, traffic fell -1.6% to 10.37 billion (ASK)s, while yield lifted on fare increases. Domestic revenue was up +0.4% to ¥150.9 billion.
Cargo results were mixed. Demand out of China and Hong Kong was weak, but demand from Japan was buoyant. Overall traffic was down -3.4%, but yield rose +10.3% due to an increase in the percentage of high-yield cargo and fuel surcharges.
(JAL) management has not changed its forecast for the full fiscal year. It is expecting a modest net profit of +¥3 billion built on an increase in revenues to ¥2.3 trillion. The group also is looking to its Oneworld membership to improve revenue streams, while a major restructure of its fleet will help rein in costs. It is building its fleet around smaller types including the 737-800, 767-300ER, 777 and 787. This year, it will complete the retirement of the A300 and YS-11. Thirty 747 Classics will be retired by Fiscal Year (FY) 2009. At the same time, it is converting eight 747-400s to 747-400BCFs. The 747s are being replaced by 777s.
Japan Airlines (JAL) is revising some routes and frequencies from October 29. Subject to regulatory approval, Nagoya - Guangzhou flights will increase from 3x-weekly to daily, Tokyo Narita - Bangkok from 14- to 21x-weekly and Narita - New Delhi from 3x to 4x-weekly. It will reduce from 14 to 7, its weekly Narita - Chicago O'Hare flights and suspend its 4x-weekly Nagoya - Manila service. "Through route restructuring, (JAL) aims to build a more profit-focused network," it said.
Japan Airlines (JAL) parent (JAL) Group applied to the Japanese Ministry of Land, Infrastructure and Transport to increase fuel surcharges on all international passenger tickets from October 1. The proposed new surcharges will rise from ¥1,300/$11.20 to ¥2,000 on a Seoul - Tokyo ticket, from ¥11,500 to ¥17,100 on a Japan - Brazil ticket and from ¥8,000 to ¥13,600 on flights from Japan to Europe and North America. (JAL) said fuel costs in the quarter ended June 30 increased +11.6% to ¥97.4 billion.
(JAL) also extended e-ticketing to passengers who connect to Singapore Airlines (SIA) flights. Previously, (JAL) passengers needed separate paper tickets for the (SIA) segment.
777-346ER (32435, JA736J), delivery.
September 2006: (JAL) and Korean Air (KAL) are expanding their code share agreement from October 29 by +40% from the current 133 flights per week over nine routes to 186 flights a week over 11 routes. Under the new agreement, the number of daily code share flights from Seoul Incheon to Tokyo Narita increases to seven, to Osaka Kansai to five, and to Nagoya Chubu to three.
Japan Airlines (JAL) will increase the frequency of its Tokyo Narita to Guangzhou route from 1 to 2 flights a day on October 29th. The airline will use a 767 for both daily flights. Japan Airlines (JAL) Cargo will increase the frequency of its Tokyo Narita to Guangzhou route from 1 to 2x-weekly on October 29th. Japan Airlines (JAL) will increase the frequency of its Tokyo Narita to Xiamen route from 3 to 4x-weekly on November 1st. In addition to currently Tuesdays, Fridays, & Sundays flights, the airline will add a Wednesday flight, all operated with 767s.
October 2006: Japan Airlines (JAL) will inaugurate charter service from Tokyo Narita (NRT) to Majuro (Marshall Islands) on February 11th, operating a 767-300 on the route.
Japan Airlines (JAL) expanded its codeshare agreements with China Eastern Airlines (CEA) and Xiamen Airlines (XIA). It will place its code on China Eastern (CEA)'s daily Fukuoka - Shanghai service from October 29 and its thrice-weekly Osaka Kansai - Kunming service from December 12. (JAL) already operates its own service on the former route and serves Kunming through Beijing. (JAL) also will place its code on Xiamen's 2x-weekly Kansai - Hangzhou flights beginning December 8. It already operates its own 2x-weekly flight on the route.
Japan Airlines (JAL) will add a fourth daily Tokyo Narita - Shanghai passenger service and a sixth weekly cargo flight on the same route from October 29.
(JAL) and Malev Hungarian Airlines (HGA) expanded their codeshare agreement to include Malev (HGA)'s daily Budapest - Amsterdam service from October 29.
November 2006: Japan Airlines (JAL)/(JAS) emerged from a year in the red with a +¥28.2 billion/+$239.2 million profit in its second fiscal quarter ended September 30, a figure based on the carrier's half-year results released yesterday.
For the six-month period, (JAL)/(JAS) posted a +¥1.5 billion profit that represented a reversal from a -¥12 billion net loss in the semester ended September 30, 2005. Six-month revenues rose +3.4% to ¥1.15 trillion.
The company credited a restructured route network and capacity cuts for a +2.9% gain in international passenger revenue, and new promotional campaigns and the introduction of more Class J business seats (C) for a +1.6% lift in domestic passenger revenue. Costs climbed +4.1% to ¥1.41 trillion. The airline partially offset a +15.4% rise in its fuel bill to ¥209.2 billion with lowered consumption, surcharges and a "-10% wage reduction." Six-month operating income declined -48.4% to +¥8.1 billion.
(JAL)/(JAS) flew 49.1 billion (RPK)s during the semester, a decrease of -4% from the year-ago period. Capacity fell -6.9% to 71.44 billion (ASK)s and load factor rose +2 points to 68.7% LF. (JAS) domestic traffic was up +0.2% to 16.75 billion (RPK)s against a +0.6% lift in (ASK)s to 26.15 billion, dropping load factor -0.3 point to 64% LF. (JAL) International (RPK)s declined -6.1% to 32.35 billion, (ASK)s fell -10.8% to 45.29 billion, and load factor grew +3.5 points to 71.4% LF.
The company maintained its full-year profit guidance of +¥3 billion but now forecasts revenue of ¥2.28 trillion, down from the ¥2.3 trillion projected in March, and costs of ¥2.69 trillion. As a result, its full-year operating profit is expected to come in at +¥13 billion rather than +¥17 billion.
December 2006: Japan Airlines (JAL) and cargo startup Galaxy Airlines (GLX) signed a codeshare agreement under which (JAL) will place its code on Galaxy (GLX) flights from Tokyo Haneda to Kitakyushu and Naha. (JAL) also will buy space aboard Galaxy (GLX)'s A300s. (JAL) holds a 10% stake in Galaxy (GLX).
(CAAC) (CAC) and Japan Airlines (JAL) reached agreement to launch cooperative aviation safety study projects in conjunction with the Civil Aviation Safety Institute of China, saying their goal is to contribute "to the development of global flight safety."
January 2007: Japan Airlines (JAL) flew 6.94 billion (RPK)s in December, down -8.4% from the year-ago month. Capacity decreased -5.1% to 10.9 billion (ASK)s, dropping load factor -2.3 points to 63.9% LF.
Japan Airlines (JAL) is mulling a plan to lay off -3,000 employees, -6% of its workforce, over the next three years to help cut losses, according to press reports. The cuts are due to be unveiled in (JAL)'s mid-year business plan due out next month. It posted a loss of -¥47 billion/-$394.8 million for the fiscal year to March 2006, as fuel prices hit the bottom line and All Nippon Airways (ANA) grabbed market share. According to the "Mainichi Daily," (JAL) also is considering a restructuring of the group's related businesses with a possible of sale of some units.
Japan Airlines Group (JAL)/(JAS) is responding to strong passenger demand by increasing frequencies on seven international routes and putting its 2007 in-flight product through a major revamp. From March 25, it will up its New York (JFK) frequencies from 10 to 13x-weekly and from June 1, Paris Charles de Gaulle (CDG) will be served 2x-daily, up from the current 10x-weekly flights. (JAL) also will add a frequency on routes from Tokyo Narita (NRT) to New Delhi, and Moscow Sheremetyevo plus from Osaka Kansai to Hanoi, Dalian, Hangzhou and Qinqdao. The latter services will be operated by newly delivered 737-800s fitted with individual In-Flight Entertainment (IFE) and Alternating Current (AC) power to most seats. On the chopping block are frequencies between (NRT) and Hong Kong, plus summer flights to Zurich. Meanwhile, (JAL) plans to increase charters by +13% in an attempt to cater to retiring "baby boomers," with packages planned for Europe and destinations around the Pacific Rim.
Related somewhat, American Airlines (AAL) transferred its Narita operation to Terminal 2 from Terminal 1, and opened a new 13,300-sq-ft lounge as part of Oneworld's effort to collocate its members prior to (JAL)'s entry into the alliance later this year. By the end of 2007, five Oneworld (ONW) members will operate out of T2.
Starting March 1st, Nagoya - Tianjin, increased to 5X-weekly, using 767s.
Its key to growing yield will be the rollout of a major upgrade of both the domestic and international cabin products. First class (F)will be added to domestic services in Fiscal Year 2007 and all classes will be upgraded on international routes from (FY) 2008. In 2004, (JAL) introduced Class "J" on domestic flights, replacing an earlier business class (c) service dubbed "Superseat," and Class "J" has enjoyed an 85% LF (load factor). The airline will offer three classes on some domestic services. The first airplanes to be configured will be 15 777-200s. A major change to the international offering will be the introduction of a "Premium" Economy class (Y), with 40 seats installed in all 777s used on routes to Europe and the USA. The seats will be in a 2-4-2 configuration with 38-inches pitch. Further upgrades will be announced later.
Japan Airlines Group (JAL)/(JAS) took a hatchet to its 165-route domestic network in its biggest overhaul since "9/11." Changes announced include introduction of one new route (a daily Kobe - Ishigaki service starting in July), a frequency increase on four, reductions on five, and suspension of 10 regional domestic services. Key drivers of the change are the availability of more slots at Tokyo airports in Fiscal Year (FY) 2009, a focus on yield and competitive pressures from (ANA). (JAL) plans to phase out all eight 145-seat MD-87s used on routes from Haneda (HND) that are legacies of its merger with Japan Air System (JAS) in favor of eight 737-800s. These airplanes will have 20 business class (C) seats in a five-abreast configuration. (JAS) also will introduce a domestic first class (F)on some flights in (FY) 2007, commencing in December on the Haneda - Osaka Itami route. Its fleet will be boosted by the addition of one 777-300ER, one 777-200, three 767-300ERs, three 767-300Fs and two Dash 8 Q400s as it phases out 10 747-200s. By the end of (FY) 2007, the fleet will total 273 airplanes, one fewer than at the end of (FY) 2006.
February 2007: JAL Group (JAL)/(JAS)'s comprehensive restructuring is starting to take effect with the company reducing its loss in its third fiscal quarter ended December 31 to -¥13.0 billion/-$107.1 million, narrowed from the -¥20.6 billion deficit in the year-ago quarter.
In conjunction with that announcement, (JAL)/(JAS) released a Medium Term Revival Plan covering the next four years, that will include an increased commitment to safety and elimination of -4,300 jobs.
Among the four core focuses of the plan, is a commitment to improving safety, after a spate of safety-related operational lapses in 2005. (JAL)/(JAS) will reduce its workforce to 48,800 by the end of the 2009 fiscal year, and is targeting a +10% productivity increase. Executives will take pay cuts as well, with President & (CEO), Haruka Nishimatsu taking a -60% hit effective this month.
The plan's third platform is continued fleet renewal, built around the 737, 777 and 787s, with a decrease in or withdrawal of the 747, MD-80 and A300 fleets. In addition, (JAL)/(JAS) will focus on high-growth, high-profit routes out of the expanding Tokyo airports, while boosting frequencies at its JALways (JAI), JAL Express (JEX), and J-AIR subsidiaries.
Third-quarter operating revenues rose +4.9% to ¥584.1 billion, while costs grew +4.3% to ¥598.1 billion, narrowing operating loss to -¥14 billion from -¥16.6 billion in the December 2005 quarter. Nine-month net loss of -¥9.3 billion was improved from a -¥23 billion deficit in the year-ago period, although operating loss widened to -¥5.8 billion from -¥800 million. Three-month traffic figures and unit performance were not announced. Nine-month (RPK)s passenger traffic fell -6.9% to 47.48 billion against a -10.4% drop in (ASK)s capacity to 66.88 billion, which lifted load factor +2.7 points to 71% LF.
For the full year ending March 31, (JAL)/(JAS) is maintaining a forecast of net earnings of +¥3 billion, a reversal from the -¥47.2 billion loss in Fiscal Year (FY) 2005. Revenues and expenses each are expected to fall -13% from previously forecast levels, with operating profit staying at +¥13 billion. It is forecasting net earnings of +¥7 billion for the year ending March 31, 2008, and +¥6 billion in the following year.
Japan Airlines (JAL)/(JAS) on March 25 will redeem ¥79.7 billion of convertible bonds due to mature in 2011, the company said in a stock exchange filing cited by "Bloomberg News," which said investors had until February 23 to convert the ¥100 billion of bonds into stock, but that shares in (JAL)/(JAS) closed -32% lower than the bonds' conversion price. (JAL)/(JAS) said it is seeking a ¥60 billion credit line to help repay the bonds, according to "Bloomberg."
Oneworld (ONW) Alliance confirmed that Royal Jordanian (RJA), Japan Airlines (JAL)/(JAS), and Malev Hungarian Airlines (HGA) will join the (ONW) alliance as full members on April 1. Five additional subsidiaries of the (JAL) Group (JAL)/(JAS) will join the same day as affiliates: JALways (JAI), Japan Asia Airways (JAA), (JAL) Express (JEX), J-AIR and Japan Transocean Air (SWL). At the same time, Aer Lingus (ARL) will withdraw from the (ONW) alliance. Three other airlines are lining up to join as affiliates in 2007: Dragonair (DRG), LAN Argentina (LNR), and LAN Ecuador (LNE). The membership changes will expand Oneworld (ONW)'s reach to almost 700 airports, nearly 150 countries and 9,000 daily departures by around 2,500 airplanes.
Starting March 1st, Nagoya - Beijing reduced to 2/week using 767s. Starting March 25th, Tokyo Narita (NRT) - Guangzhou reduced to 11/week using 767s, (NRT) - Hong Kong reduced to 17/week, (NRT) - Hanoi increased to 3/week, using 767s, and (NRT) - New York (JFK) increased to 13/week, using 747-400s. Starting May 15th, Osaka (KIX) - Hanoi increased to 4/week using 737-800s. Starting June 1st, (NRT) - Moscow (SVO) increased to 4/week; (NRT) - Paris (CDG) increased to 14/week; both using 777s; & (NRT) - Zurich, discontinued. Starting October 1st, (NRT) - Delhi increased to 5/week, using 777s.
(JAL) Group (JAL)/(JAS) announced its intention to introduce the Embraer E170 on its domestic network, starting next year.
The company said it "will conclude a purchase agreement" with the Brazilian manufacturer for 10 firm airplanes plus five options this spring. They will be powered by (GE) (CF34-8)s and be operated by regional subsidiary J-AIR, which currently relies mainly on the CRJ200. (JAL)/(JAS) said the airplanes will allow it to match demand more efficiently on domestic routes and take advantage of an increase in slots at Tokyo Haneda from 2009.
4 747-346s (23482; 23640; 24019; 24156), sold to TransAero (TRX).
April 2007: Japan Airlines (JAL) and Thai Airways (TII) expanded their code share agreement to include Thai (TII)'s 2x-daily, Bangkok - Krabi service.
Japan Airlines (JAL)/(JAS) completed Oneworld (ONW) Alliance's spring expansion, joining Malev Hungarian Airlines (HGA) and Royal Jordanian (RJA) as members of the (ONW) alliance. (JAL)/(JSA) subsidiaries JALways (JAI), Japan Asia Airways (JAA), (JAL) Express (JEX), J-AIR and Japan Transocean Air (SWL) are new Oneworld (ONW) affiliate members. (JAL)/(JAS) was the largest airline in the world outside one of the three major alliances, (ONW) said. It adds nearly +50 airports to the grouping's network and one new country, Guam. (LAN) Argentina (LNR) and (LAN) Ecuador (LNE) also are new affiliate members, while Aer Lingus (ARL)'s withdrawal now is official. Dragonair (DRG) will join as an affiliate member later this year.
(CAE) said that it sold two 7000 Series 787 full-flight simulators to Japan Airlines (JAL)/(JAS) valued at C$36 million/$31.2 million. The first will be delivered to (JAL)/(JAS)'s Tokyo Haneda training center in 2008.
Japan Airlines (JAL)/(JAS) ordered five additional 787-8s, bringing its total to 35 and pushing Boeing (TBC)'s total Dreamliner sales to more than >500 if new orders from unidentified customers are included. (JAL)/(JAS) placed an order for 30 787s in December 2004, nine months after Boeing (TBC) launched the program. (TBC) said that it has sold 514 Dreamliners to 43 customers, meaning 23 new orders from four customers including (JAL)/(JAS) have been received since the end of last week. "Surpassing the 500 order mark this early in the program - - more than a year before the first airplane is delivered - - shows that Boeing (TBC) made the right choice in our point-to-point business strategy, and that the 787 team made the right choices in designing the airplane," 787 Program VP & General Manager, Mike Bair said. Customers for the remaining new orders were unidentified.
Boeing (TBC) said that (JAL)/(JAS) will install Class 3, Electronic Flight Bags (EFB) on 2 new 777s to be delivered this year: A 777-200 scheduled for delivery in May, and a 777-300ER to be delivered later in the year. The (EFB)s are the 1st ordered by (JAL)/(JAS), which operates 38 777s and has 8 more on order.
Japan Airlines (JAL) repainted a 777-200ER in "Oneworld" livery and began flying the airplane on routes to Europe. It will unveil a 777-300 in Oneworld (ONW) livery for domestic routes on April 30. (JAL) joined the alliance this month.
747-246B (22990), sold to Kalitta Air. 767-346ER (35813, JA616J), delivery.
May 2007: Japan Airlines (JAL)/(JAS) revised down its earnings forecast for its 2006 fiscal year ended March 31, to a net loss of -¥16.2 billion/-$135.5 million, significantly changed from a February forecast of a net profit of +¥3 billion for the 12 months. The company said in a statement that the alteration was "primarily due to deferred tax asset adjustments to its balance sheet and an extraordinary loss resulting from a special early retirement program (JAL)/(JAS) launched in March 2007. (JAL)/(JAS) has reevaluated its deferred tax management strategy and decided to remove ¥44.7 billion of deferred tax assets from the Fiscal Year (FY) 2006 balance sheet."
However, it boosted its revenue forecast for the fiscal year by +1.5% compared to the February forecast, to ¥2.3 trillion and its operating profit by +76.2% to ¥22.9 billion. It is scheduled to release official results for the fiscal year ended March 31 on May 9. It reported a -¥47.2 billion net loss for the fiscal year ended March 31, 2006.
A significantly improved operating result helped Japan Airlines Corporation (JAL)/(JAS) narrow its net loss for the fiscal year ended March 31 to -¥16.2 billion/-$135.1 million from -¥47.2 billion in the prior year, although the bottom line was hurt by the removal of a ¥54.4 billion deferred tax asset from the balance sheet, and an extraordinary loss of -¥6 billion from a special early retirement program launched in March. (JAL)/(JAS) credited network restructuring, cost-cutting and rising yields from international premium traffic for its reversal of operating fortune as it reported a +¥22.9 billion profit compared to a -¥26.8 billion deficit in Fiscal Year (FY) 2005. Operating revenue climbed +4.6% to ¥2.3 trillion, driven by a +5% lift in international passenger revenue to ¥724.8 billion and recovering domestic demand, with sales up +1.6% year-over-year to ¥675.6 billion. International passenger yield jumped +13.1%. Continued cost-cutting, including a -10% wage reduction, held the increase in operating expense to just +2.3% to ¥2.28 trillion even as the fuel bill climbed +11.6%.
(JAL)/(JAS) found that passenger demand was particularly strong on short- and medium-haul routes, such as Korea and Southeast Asia services, as well as China, where it boosted frequencies and enjoyed its largest traffic and capacity increases. International network restructuring has been a key platform for recovery, and featured an emphasis on high-profit routes, suspension of low-profit routes, and airplane downsizing. On the domestic front, the carrier launched various promotional campaigns while introducing its Class J domestic business class (C) on some airplanes.
Total traffic fell -7.2% to 62.6 billion (RPK)s against a -9.5% decline in capacity to 87.99 billion (ASK)s, lifting load factor +1.7 points to 71.1% LF.
In the 4th fiscal quarter, (JAL)/(JAS) lost -¥6.8 billion, narrowed from a -¥24.1 billion deficit in the year-ago quarter, on a +7.1% rise in revenue to ¥567.7 billion. Operating result swung to a +¥28.7 billion profit from a -¥25.9 billion loss. It is targeting a full-year profit for the 12 months ending March 31, 2008, forecasting -¥7 billion in net income on ¥2.2 trillion in revenue and an operating profit of +¥35 billion.
Japan Airlines (JAL) and China Eastern Airlines (CEA) will expand their codeshare agreement to include flights the Chinese carrier (CEA) operates 4x-weekly between Nagoya and Beijing. The airlines currently code share on 12 routes linking China and Japan.
Thales (THL)'s TopSeries In-Flight Entertainment (IFE) system was selected by Japan Airlines (JAL)/(JAS) for installation on the carrier's 787s, the first of which is slated to enter service next year.
747-221F (21743), sold to Kalitta Air (KAC). 777-246 (27653, JA773J), delivery.
June 2007: 767-346ERF (35816, JA631J), delivery.
August 2007: Japan Airlines (JAL)/(JAS) parent (JAL) Group's strategy of focusing on high-yield business traffic appears to be paying dividends, evidenced by a narrowed fiscal 1st-quarter net loss of -¥4.2 billion/-$36.8 million for the 3 months ended June 30, a strong improvement over a -¥26.6 billion net loss in the year-ago quarter. The result was achieved on revenue of ¥520.6 billion, a -0.3% decline attributed to the removal of trading company (JALUX) from the group's figures. Airline (JAL)/(JAS) operations produced revenue growth of +3% to ¥422 billion despite cutbacks in routes. A major highlight was a -4.5% fall in expenses to ¥529.2 billion, brought about by route restructuring, fleet downsizing, personnel cuts, fuel consumption reduction measures and contingency measures such as a decrease in (JAL)/(JAS) staff's basic wage. The airline cut -1,600 staff for the year ended March 31, and plans to trim another -700 workers this year, with a goal of -4,300 total job cuts by March 2009.
Quarterly traffic was down -6.9% to 21.48 billion (RPK)s on a -4.2% decrease in capacity to 33.26 billion (ASK)s. International load factor was 67.8% LF and domestic 59.2% LF, while overall load factor was 64.6% LF.
Cargo revenue increased +0.6% to ¥44.4 billion as (RTK)s lowered -3.8% to 3.08 billion and (ATK)s declined -2.5% to 5.18 billion. While cargo demand from Japan to China grew tenfold, demand out of Europe and SE Asia slackened due to depreciation of the yen, (JAL)/(JAS) said. It maintained its May 2007 guidance that the group remains on track to record a net profit of +¥7 billion for the full year ending March 31, 2008.
JAL Group (JAL)/(JAS) is looking to build on its significant financial turnaround with a greater commitment to routes oriented toward business (C) travelers. From October 28, it will add a 14th weekly Tokyo Narita (NRT) to Guangzhou flight and increase (NRT) to New Delhi service to daily from 5x-weekly. It will maintain the recent increase to 13 weekly flights on its (NRT) to New York (JFK) service, but will decrease frequencies to Los Angeles (to 7x-weekly from 8x-), Paris Charles de Gaulle (to 7x- from 10x-) and Hong Kong (to 14x- from 17x-). (JAL) is rolling out its Shell Flat Seat on (NRT) to New Delhi, and Nagoya to Bangkok services and plans to introduce a charter service between Tokyo Haneda and Shanghai Hongqiao. On the cargo front, it will operate to Vietnam for the 1st time with 2x-weekly Osaka to Ho Chi Minh City flights, due to begin October 28 aboard its 3rd 767-300F. The airplane will be used to replace certain 747-200F frequencies within Asia.
September 2007: Japan Airlines (JAL) will transfer its 3x-weekly Moscow service to Domodedovo (DME) from Sheremetyevo on December 14, (DME) announced.
(ANA), Shanghai Airlines (SHA), and Air China (BEJ) will code share on flights between Tokyo Haneda and Shanghai Hongqiao beginning September 29. The flights, operated by (ANA) and Shanghai (SHA), will be introduced from the mostly domestic airports to commemorate the 35th anniversary of the normalization of diplomatic ties between the countries, (ANA) said. Japan Airlines (JAL) also will operate the route, flying daily from September 29, aboard a 767, switching to a 747-400 on October 28. China Eastern Airlines (CEA) will code share on those flights and also operate its own daily service.
747-221F (21744) sold to Kalitta Air (KAC). 767-346ERF (35817, JA632J), delivery.
October 2007: Japan Airlines (JAL)/(JAS) said it will offer early retirement plans to 900 cabin staff (CA), who will have completed 15 years of service and will be at least 54 years old if managerial or 50 if nonmanagerial on March 31. (JAL)/(JAS) said it is working to cut yearly employment costs by -¥50 billion/-$425 million from Fiscal Year (FY) 2006, by increasing productivity 10%, a hiring freeze and early retirement incentives. It said 630 ground staff employees holding middle management positions have accepted an early retirement package, offered in August, and will leave the carrier November 30. A total of 250 senior management employees out of 450 eligible, retired June 30, under a similar scheme. (JAL)/(JAS) said that Maintenance (MT), Engineering (MT), and Flight Operations (FC) control staff, have been excluded "to secure smooth business operations and pass on skills and techniques."
Japan Airlines (JAL) announced that its (JAL) Premium Economy cabin will be introduced beginning December 1 on its daily Tokyo Narita - London Heathrow service. It will be added on flights to Frankfurt and Paris Charles de Gaulle next year, "followed by the expansion of the new service onto USA and other Europe[ean] routes," (JAL) said. The product will feature what the airline called the world's first shell-shaped premium economy (Y) seat with 97-cm pitch, a business class (C) amenity kit, and enhanced food service. Forty-four seats in 2-4-2 configuration will be available on 777-300ERs and 40 on 777-200ERs. Passengers will have dedicated check-in counter and lounge access.
Japan Air Lines (JAL) will switch its Tokyo Narita - Moscow Sheremetyevo service to Domodedovo, beginning December 12.
767-346ERF (35818, JA633J), and 777-346ER (36126, JA737J), deliveries.
November 2007: The JAL Group (JAL)/(JAS) reported a better-than-fivefold increase in net income for the first half of its fiscal year ended September 30 to +¥7.3 billion/+$63.7 million compared to +¥1.5 billion a year earlier, crediting "cost reforms" such as airplane downsizing, reduced spending on personnel, and the elimination of money-losing routes for the improvement. First-half revenue dipped -0.6% to ¥1.14 trillion, while costs fell -4.9% to ¥1.09 trillion, producing operating income of +¥56.6 billion, a nearly sevenfold boost over +¥8.1 billion last year. The (JAL) Group (JAL)/(JAS) noted that air transport segment personnel expenses lowered by -¥7.1 billion. The airline is targeting -4,300 total job cuts by March 2009. Traffic dropped -5% to 46.66 billion (RPK)s on a -4.4% decrease in capacity to 68.3 billion (ASK)s, producing a load factor of 68.3% LF, down -0.4 point. "Tourism demand was weak on Europe routes and Hawaii routes, due to a weakening of the yen, and also on Taiwan routes, where competition intensified," the company said. "Demand out of Korea was particularly strong, and business demand was strong on USA routes, Southeast Asian routes, and China
routes." First-half international cargo revenue fell -1% year-over-year to ¥91.4 billion.
(JAL)/(JAS) projects flat fiscal-year (FY) 2007 net income of +¥7 billion on a +3% boost in revenue to ¥2.24 trillion.
Dragonair (DRG) officially joined Oneworld (ONW), becoming the alliance's 11th member carrier. Its affiliation will add 15 new destinations to the Oneworld (ONW) network, including 12 in mainland China. "Our strong market presence in the mainland will give passengers greater access to this fast-growing market, and at the same time, we can help people connect with our growing network of niche destinations around the region," CEO, Kenny Tang said. Dragonair (DRG), now part of the Cathay Pacific (CAT) Group, operates 31 passenger airplanes and seven freighters to 33 destinations, including 21 in mainland China.
Oneworld (ONW) members (CAT), British Airways (BAB), and Qantas (QAN) opened the first airport lounge developed as an "alliance project" in Los Angeles International Airport's international terminal. Passengers flying Japan Airlines (JAL) or (LAN) Airlines (which operate from that terminal), and elite members of other alliance carriers, will have access to the 1,360 sq m facility. American Airlines (AAL) maintains its own lounge in Terminal 4.
December 2007: USA cargo carrier Kalitta Air (KAC) plans to acquire 10 747-446BCF freighters from Japan Airlines (JAL) to fuel its growth over the next few years. The Michigan-based carrier has reached agreement with (JAL) to purchase a single General Electric (CF6-80)-powered 747-446BCF for delivery in May 2009. It is also negotiating for the acquisition of a second 747-446BCF from (JAL) with a July 2009 delivery date. A further eight 747-446BCF freighters are expected to be sourced from (JAL), revealed Kalitta (KAC) VP & General Manager, D C Sanderlin. “We believe that (JAL) will have those available later.” He says the full batch of airplanes is expected to be delivered through 2011 and will fulfil the carrier’s anticipated capacity requirements.
“The technological advances of the 747-446BCF include significantly greater range and fuel efficiency over earlier model Boeing freighters, making it an ideal airplane for our global network,” says Kalitta (KAC) (CEO), Connie Kalitta. He said the carrier’s first purchase of a 747-400BCF “marks a milestone for Kalitta Air (KAC), which is completing another year of record revenues and is solidly positioned for future growth”.
(JAL)’s first 747-446BCF underwent modification at China’s Taikoo (Xiamen) Aircraft Engineering, and was received by the carrier in May 2006. At that time, (JAL) had seven more 747-446BCFs on firm order and held options for another four airplanes.
January 2008: 2007 statistics (JAL)/(JAS): 86.6 billion (RPK)s passenger traffic -4.5%; -4.3% capacity (ASK)s; -.2 load factor for 69% LF. SEE ATTACHED COMPARISON CHART TO SELECTED OPERATORS - "JAL-2007-STATS."
Japan Airlines (JAL) placed its code on China Eastern Airlines (CEA)'s twice-weekly, Tokyo Narita (NRT) - Nanjing service. It will introduce its new premium economy service on (NRT) - Frankfurt flights beginning February 3.
Japan Airlines (JAL) will link its loyalty program to those of China Eastern Airlines (CEA) and Mexicana (CMA) from February 1. (JAL) has similar agreements with Air France (AFA), Emirates (EAD), and its oneworld (ONW) partners.
Airlines throughout the world are contending with antitrust charges made at the end of 2007 by the European Commission (EC), which has accused at least 11 and as many as 25 carriers of "cartel" activity relating to airfreight transport. In addition to British Airways (BAB), Japan Airlines (JAL), Air France (AFA)/(KLM), (SAS) Group, and Cargolux (CLX) (all of which confirmed receipt of statements of objections from the (EC) before Christmas),(ANA), Air New Zealand (ANZ), Air Canada (ACN), Cathay Pacific Airways (CAT), (LAN) and Singapore Airlines (SIA) have admitted to being charged. Carriers charged late last year, have two months from the receipt of statements of objections to respond in writing to the (EC) and also have the option of requesting a formal hearing. An airline found guilty or admitting to guilt can be fined up to 10% of its annual revenue.
Japan Airlines (JAL)(JAS) said 320 flight attendants (CA) applied for its early retirement plan out of 900 who were eligible. Early retirement also has been offered to certain senior management and ground staff. (JAL)/(JAS) said 1,200 (CA) have taken advantage of the offers across the company in the past year. It intends to reduce personnel costs by -¥50 billion/-$468.3 million each fiscal year through Fiscal Year (FY) 2009 to 2010 with a variety of initiatives.
Fraport Cargo Services (FCS) will be the handling agent for Japan Airlines (JAL) under a long-term deal that gives (JAL) Cargo use of (FCS)'s CargoCity South warehouse including its own freight acceptance and delivery office. (JAL) Cargo will head shipment document handling and oversee operations. Construction of a 5,000 sq m warehouse and a four-story, 2,600 sq m adjoining office building next to the airport tower is slated for completion this year.
February 2008: (JAL) Group (JAL)/(JAS) reported net income of +¥13.1 billion/+$122.9 million for its fiscal third quarter ended December 31, reversed from a net loss of -¥10.8 billion in the prior year period, citing "shifting of resources to high-profit routes" and a sharp reduction in personnel costs. Quarterly revenue decreased -4.4% to ¥558.2 billion, while expenses lowered -11% to ¥532.3 billion, producing operating income of +¥25.9 billion, reversed from a -¥14 billion operating loss in the year-ago quarter. Nine-month profit was +¥20.4 billion versus a net loss of -¥9.3 billion in the 2006 period. "Over the nine month-period, capacity supply on international and domestic passenger routes measured in (ASK)s, decreased respectively by -4.9% and -3.1%, as a result of network restructuring, by shifting to high-profit routes and fleet downsizing," (JAL)/(JAS) said. Total traffic for the nine months declined -3.7% to 45.7 billion (RPK)s on a -4.9% drop in capacity to 63.6 billion (ASK)s, producing a load factor of 71.9% LF, up +0.9 point. The company noted that its cost reduction efforts generated +¥14.9 billion in savings through the fiscal year's first nine months. Looking ahead, (JAL)/(JAS) forecasts a full fiscal year profit of +¥7 billion, which would reverse a -¥16.2 loss in the prior fiscal year.
Chairman, Toshiyuki Shinmachi announced that he will retire on March 31. He has held the post since June 2006, when he was elevated from CEO. No successor has been appointed.
Japan Airlines Group (JAL)/(JAS) released its latest corporate plan covering the April 1, 2008 to March 31, 2009, period and said the expansion of Tokyo's downtown Haneda Airport, downsizing of the fleet, and the introduction of more premium products are pivotal. It plans to operate flights between Haneda and Beijing Nanyuan during this summer's Olympics, as well as to increase the number of international "charter" flights from the airport. (JAL) currently operates flights from Haneda to downtown airports in Seoul (Gimpo) and Shanghai (Hongqiao). Haneda will be expanded significantly in 2010, when a fourth runway is opened. The carrier is speeding implementation of its premium-customer-oriented strategy by introducing new seats in (JAL) First Class (F) and (JAL) Executive Class and by introducing its (JAL) Shell Flat Seat, and (JAL) Premium Economy (Y) Service onto more routes. It also is replacing 747-400s with 777-300ERs on some New York (JFK) and San Francisco services, while 737-800s are replacing 767-300s on some regional services to China and Korea. On domestic routes, it will expand its first class (F) rollout and introduce the E170 from February 2009. In Fiscal Year (FY) 2008, it plans to retire 10 747 Classics (seven passenger and three freighter), two 767-300s, and six MD-81s, and introduce three 777-300ERs, five 767-300ERs, nine 737-800s, and two E170s.
(VRG) (VAR) and Japan Airlines (JAL) inked an interline agreement that will allow passengers to purchase single tickets for flights serving all destinations of both carriers. Passengers traveling under (VRG) (VAR)'s "Smiles" frequent-flier program will only accumulate miles on flights operated by (VRG) (VAR), formerly Varig.
Oneworld (ONW) airlines will begin bringing all operations together at Beijing International in the airport's vast new passenger terminal. British Airways (BAB) and Qantas (QAN) will move on February 29, while the alliance's other members serving Beijing (Cathay Pacific (CAT), Dragonair (DRG), Finnair (FIN), and Japan Airlines (JAL)) will transfer into Terminal 3 on March 26. The six Oneworld (ONW) Alliance carriers will use check-in desks in the terminal's Area C.
767-346ER (35815, JA618J), delivery.
March 2008: Japan Airlines (JAL) will code share on six additional routes operated by China Eastern Airlines (CEA): Shanghai to Kagoshima, Matsuyama, Niigata, and Okinawa, plus Qingdao to Fukuoka, and Nagoya.
Beijing Capital International Airport's new $3 billion-plus Terminal 3 opened as Shandong Airlines (SHG) (flight SC1151 arrived from Jinan at 8:39 am. UK architect, Norman Foster claimed it is the largest covered structure ever built - - 3.25 km long and 1.3 million sq m of floor space. Construction began in March 2004. The airport said the three-concourse facility welcomed Shandong (SHG), Sichuan Airlines (SIC), Qantas (QAN), Qatar Airways (QTA), British Airways (BAB), and El Al (ELA). A second move is scheduled for March 26 when Air China (BEJ), Shanghai Airlines (SHA), (SAS), Austrian Airlines (AUL), Lufthansa (DLH), Asiana Airlines (AAR), Air Canada (ACN), United Airlines (UAL), (ANA), Thai Airways (TII), Singapore Airlines (SIA), Finnair (FIN), Cathay Pacific Airways (CAT), Japan Airlines (JAL), Dragonair (DRG), Turkish Airlines (THY), Emirates (EAD), Air Macau (MCU), S7 Airlines (SBR), and EgyptAir (EGP) will transfer to the new building. "Reuters" reported that airport capacity will be boosted to 76 million per year from the 52 million it served in 2007. The baggage system can handle 19,800 pieces per hour, it said.
Japan Airlines (JAL) parent JAL Group (JAL)/(JAS) in its Fiscal Year (FY) 2008 to 2010 "Medium Term Revival Plan" raised its profitability target for its 2010 to 2011 fiscal year to +¥96 billion/+$932 million from +¥88 billion in last year's "Medium Term Revival Plan." The decision to increase the target is owing to early successes in its ongoing restructuring program, which also contributed to its raising its operating profit forecast for the current year ending March 31 to +¥48 billion from +¥35 billion. Over the period of the plan, (JAL)/(JAS) will retire 46 airplanes, including 747-200s and MD-81s, while adding 65 777s, 737-800s and 787s. As of March 31, 2011, the fleet will number 291 airplanes, up from 272 today.
(JAL)/(JAS) also expects to expand the use on international and domestic routes of subsidiaries JALways (JAI), (JAL) Express (JEX) and J-AIR, which have overhead costs approximately -10% lower than the mainline. JAL Express (JAI) currently serves domestic routes, but in Fiscal Year (FY) 2009, will start operating 737-800s internationally, primarily to China. J-AIR, which operates regional jets domestically, will expand operations with EMB-170s in (FY) 2008. The group's strategy is focused on high-growth, high-profit markets. A key platform is the accelerated rollout of new first (F) and business class (C) seats on international services, along with premium economy. As previously announced, it plans to reduce staff numbers from 53,100 at the end of (FY) 2006 to 48,800 by the end of (FY) 2008.
April 2008: Japan Airlines (JAL) agreed to pay a $110 million fine as part of a plea agreement with the USA Dept of Justice (DOJ) related to its role in the fixing of international cargo rates. Qantas (QAN), British Airways (BAB), and Korean Air (KAL) already had pled guilty and agreed to penalties in a long-running investigation by the USA and European authorities that has targeted other carriers as well. The (DOJ) said (JAL) "engaged in a conspiracy . . . to eliminate competition by fixing the rates for international shipments of cargo to and from the USA and elsewhere from on or about April 1, 2000, to February 2006," earning nearly $2 billion on its USA - Japan routes.
(JAL) said it has "cooperated fully" with the (DOJ)'s inquiry and that the plea agreement "is the best resolution . . . in the circumstances." It had set aside a reserve of around ¥11.5 billion/$113.6 million to accommodate a potential penalty and promised it "will determinedly continue to expand and reinforce its current antitrust compliance program."
May 2008: JAL Group (JAL)/(JAS) last week issued a revised full-year forecast for the year ended March 31, 2008, saying that "trends in recent performance" led it to raise expected net earnings to +¥16 billion/+$153.9 million from the +¥7 billion projected in its most recent forecast last November. It reported a -¥16.2 billion loss in the year ended March 31, 2007.
Fiscal year operating income is expected be +¥90 billion, compared to the originally forecast +¥48 billion and last year's +¥22.9 billion. Operating revenue is expected to be slightly lower than originally forecast, ¥2.23 trillion versus ¥2.24 trillion. Both figures represent approximately a -3% drop from Fiscal Year (FY) 2006. The company will release final results May 9. "As a result of the effectiveness of 'premium strategies' aimed at attracting business and top-tier travelers through product and service enhancement and development, international passenger demand has been robust," (JAL)/(JAS) said. "Even though domestic passenger demand is slightly lower than expected, the JAL Group (JAL)/(JAS)'s revised forecast for operating revenue is almost the same as its previous forecast announced in November last year."
The key, the company said, has been "the effectiveness of group-wide cost reform implemented during (FY) 2007." It expects full-year costs to be ¥2.14 trillion, down -2.3% from the November forecast, and -6.1% from the prior year. (JAL)/(JAS) said it will take a ¥7.07 billion temporary depreciation charge related to a change in the expected lifetime of certain spare parts and that it has set aside ¥6.19 billion to deal with the ongoing European Commission (EC) investigation into alleged antitrust violations on international cargo shipments. Last month it agreed to pay a $110 million fine after reaching a plea agreement with the USA Dept of Justice.
The Japan Airlines Group (JAL)/(JAS) announced a significant earnings turnaround to a net profit of +¥16.9 billion/+$162.1 million for the fiscal year ended March 31 from a loss of -¥16.2 billion the prior year on the back of premium strategies on its international operation and route restructuring on its domestic network. The profit was achieved on a -3% drop in sales to ¥2.23 trillion as (JAL)/(JAS) disposed of a number of consolidated subsidiaries. In terms of air transportation, (JAL) Group (JAL)/(JAS)'s core business, revenue increased +1.4% to ¥1.82 trillion.
Leading the turnaround was international passenger demand bolstered by "premium strategies" launched over the past two years. International revenue increased +4% to ¥754.3 billion, while domestic demand was stagnant due to a reduction in supply after the airline restructured its network. Domestic revenue crept up just +0.3% to ¥677.4 billion. It was able to slash operating costs -6.1% to ¥2.14 trillion, and its operating income of +¥90 billion, up from +¥22.9 billion in Fiscal Year (FY) 2006, was the highest since the 2002 integration with Japan Air System (JAS).
Net profit would have been much higher, but for a series of extraordinary losses resulting from special early retirement programs, funds set aside for antitrust investigations by USA and European Union (EU) authorities, and temporary depreciation costs. (FY) 2007 passenger numbers eased +3.8% to 55.3 million, while (RPK)s traffic declined at the same rate to 92.17 billion. Capacity fell -4% to 134 billion (ASK)s, lifting load factor +0.2 point to 68.7% LF.
Key to the group's dramatic renaissance was its focus on high-profit, high-growth routes, and enhancing the role of its low-overhead international subsidiary JALways (JAI). (JAL) increased frequencies to China, India, Russia, and Vietnam. It also raised its profile through a greater commitment to Oneworld (ONW) Alliance, revamping lounges and check-in areas at Tokyo Narita's Terminal 2 and introducing (JAL) Premium Economy (PY) and first class (F) on some domestic flights.
Japan's Ministry of Land, Infrastructure and Transport announced the following policies that will take effect when Tokyo Haneda's fourth runway opens in 2010, the Centre for Asia Pacific Aviation reported: Night curfew will be reduced to 10 pm from 11 pm, to "allow more convenient schedules for USA and European flights," international slots will be restricted to 30,000 until October 2010, and eventually will increase to 60,000, with new slots going to "expansion of Asian city routes where business need is strongest," and domestic slots will double to 20,000 annually.
(JAL)/(JAS) continues to rationalize its fleet through a shift to twin-engine airplanes and retirement of older 747s and MD-81s, and said that soaring fuel prices will result in accelerated disposal of five 747-200Fs that will be replaced by 767-300Fs on routes to China, Vietnam, and Indonesia.
Going forward, (JAL)/(JAS) is forecasting a -23% drop in profit to +¥13 billion for (FY) 2009, due to escalating fuel prices and increased competition, particularly from the popular Shinkansen bullet train.
747-246F (23641, N723SA), sold to Southern Air (SOF).
June 2008: Japan Airlines (JAL) began placing its code on twice-daily , British Airways (BAB) flights between London Heathrow and Manchester , and from August 14, will place its code on Vietnam Airlines (VIE)'s 4x-weekly, Hanoi - Nagoya service.
Boeing (TBC) reached a deal with Japan Airlines (JAL) to equip current and future 777s with Class 3 Electronic Flight Bags (EFB)s following a validation trial that began last year. Two 777s have been operating with the (EFB)s since June 2007, and (JAL) expects to take delivery of three (EFB)-equipped 777-300ERs this year. Retrofit kit installation will begin in April 2009, and completion is slated for late 2011.
Japan Airlines will use the introduction of its 777-300ER on routes to the USA to unveil its latest first (F) and business class (C) seats. It will launch the (JAL) Suite in first class (F) and the (JAL) Shell Flat Neo Seat in business (C) starting with its Tokyo - New York (JFK) route thrice-weekly from August 1 and daily from August 11. San Francisco will come online September 13 and Chicago O'Hare and Los Angeles from April 1. The 777-300ER will replace 747-400s, cutting fuel burn by -20%. The carrier's popular (JAL) Premium Economy service and a new standard economy (Y) seat, also will debut on the USA services. The (JAL) Suites are +20% more spacious than the airline's current first class (F)offering. Reflecting changing times, it is fitting only eight suites on each airplane in a 1-2-1 configuration. (JAL) Premium Economy was introduced on international routes in December. The 777-300ERs will be configured with eight first (F), 77 business (C), 46 premium economy, and 115 economy (Y) seats - - a total of 246. (JAL) is joining a growing number of airlines that are downsizing to 777-300ERs, while adding a premium economy cabin and shedding traditional economy (Y) seats.
Japan Airlines (JAL) said the JAL Flight Crew Union (1,100 members), JAL Japan Pilots Union (JPU) (600), and Japan Air Commuter (JAC) union (113) staged a strike, forcing cancellation of 86 flights (all related to the (JAC) walkout). (JAL) added that the pilots (FC)'s action was "for a variety of reasons, including the summer bonus." It said (JPU) and (JAC) may continue the strike another day, which would affect more flights.
Air France (AFA)/(KLM), Cathay Pacific Airways (CAT), Martinair (MTH) and the (SAS) Group all reached agreement with the USA Department of Justice (DOJ) to plead guilty in USA court and pay criminal fines "for participating in a multiyear conspiracy to fix prices for air cargo rates," the (DOJ) said. (AFA)/(KLM) will pay a $350 million fine, Cathay (CAT) has agreed to pay $60 million, Martinair (MTH) $42 million, and (SAS) $52 million, bringing the total imposed by the (DOJ ) during its investigation into air cargo antitrust violations to $1.27 billion. The figure marks the highest amount ever imposed by the antitrust division in one investigation. British Airways (BAB), Korean Air (KAL), Japan Airlines (JAL), and Qantas (QAN) already have pled guilty and paid fines. In addition, a former Qantas (QAN) executive will serve eight months in a USA jail as a result of the investigation.
(AFA)/(KLM) Chairman & (CEO), Jean-Cyril Spinetta said the company has "taken thorough steps across the organization to prevent recurrence." (SAS) President & (CEO), Mats Jansson said there are "various control mechanisms" in place to prevent antitrust violations, adding that it was "very unfortunate and a serious problem that our policies were not fully observed in this case." Cathay (CAT) (CEO), Tony Tyler said that airline "carefully considered all applicable factors and concluded that entering into this agreement at this time presents the best resolution to the investigation," adding that "it transpired that some of our actions relating to shipments from Hong Kong to the USA were in conflict with USA antitrust laws, and we very much regret this."
The (DOJ) said that "the airlines each engaged in a conspiracy to suppress and eliminate competition, by fixing the cargo rates charged to customers for international air shipments. The charged conduct affected billions of dollars of consumer and other goods . . . shipped by these airlines and their competitors." Associate Attorney General, Kevin O'Conner added that the "price-fixing conspiracy undermines our economy and harms the American people who, due to lack of true competition in this area, end up footing the bill." The (DOJ) said its investigation is ongoing. Both Air Canada (ACN) and El Al (ELA), which were not included in the agreements recently announced, said they have made provisions for possible settlements with the (DOJ) regarding cargo antitrust violations. The European Union (EU) and other government agencies throughout the world, also are conducting continuing investigations into alleged anticompetitive airfreight rate practices.
Japan Airlines (JAL), Boeing (TBC), and Pratt & Whitney (PWC) will team up to conduct a demonstration flight "to accelerate current research and development into the creation of a second-generation biofuel," (JAL) announced. A (JT9D)-powered (JAL) 747-300 will fly for 1 hour with one of its four engines partially powered by a yet-to-be-determined biofuel, sometime toward the end of the fiscal year ending March 31, 2009.
July 2008: Japan Airlines (JAL) plans to introduce its new premium economy cabin on four more European routes this year. From October 2, it initially will be available on three of the seven weekly flights between Amsterdam and Tokyo, and from December 6 on all flights. Premium economy will be introduced on all three weekly, Moscow - Tokyo flights from November 29. The cabin will be offered on 3x-weekly flights between London and Osaka from October 1, going to daily from November 29. It will be introduced on daily service between Paris and Nagoya from December 6.
August 2008: 1st 6 months = 31.49 billion (RPK)s traffic - - see "JAL-08TOPWLD6MTHSRPK."
The Japan Airlines Group (JAL)/(JAS) posted a net loss for its fiscal first quarter ended June 30 of -¥3.4 billion/-$31.3 million, narrowed from a -¥4.3 billion/-$40 million deficit in the prior-year period, and unveiled the biggest review of its network since 2002 to mitigate the rising cost of fuel. The earnings result, while an improvement year-over-year, marked (JAL)/(JAS)'s fifth consecutive first-quarter loss. It said that from October 1, it will make major network changes, lifting capacity on high-growth, profitable flights such as those between Japan and Seoul, Shanghai and Hanoi. But it will suspend services on at least three underperforming international routes including Osaka - London Heathrow (LHR). It also will downsize airplanes on a number of international routes and operate fewer frequencies on 12 domestic routes. It will cut five domestic routes altogether. (JAL)/(JAS) said it will make alterations to its cargo network, including suspending routes and lowering frequencies where it believes revenue is waning. The airline already has been undergoing something of a restructuring and the narrowed first-quarter loss was partly attributable to slashed jobs, reduced bonuses and lower retirement benefits.
Quarterly revenue decreased -5.8% to ¥490 billion, mainly due to two companies being removed from the list of the (JAL) Group (JAL)/(JAS) subsidiaries. Its core air transportation segment posted a +1.4% increase in revenue to ¥428.1 billion and the segment's operating income was +¥14.2 billion, reversed from a -¥10.9 billion operating loss in the year-ago period. The group is holding to its forecast of a +¥13 billion profit for its full fiscal year.
International passenger traffic was down -5.7% to 13.22 billion (RPK)s on a -3.5% decrease in capacity to 19.95 billion (ASK)s, while domestic traffic lowered -0.3% to 7.43 billion (RPK)s on a -2.6% fall in capacity to 12.26 billion (ASK)s.
(ANA) and Japan Airlines (JAL)/(JAS) are looking to cut underperforming domestic and international routes. (ANA) told media that it may suspend 10 routes, while "Nikkei Business Daily" suggested that (JAL)/(JAS) may suspend 21 routes. Both airlines are expected to make formal announcements soon.
(JAL) Group (JAL)/(JAS) filed an application with the Japanese Ministry of Land Infrastructure, Transport & Tourism requesting that international normal interline fare rates be raised by +10% on flights to the Americas and by +5% on flights to other Asian destinations and to the Middle East and Africa.
(JAL) commenced "User Preferred Route" (UPR) trials for flights between Japan and Hawaii, enabling the airline to save fuel and cut CO2 emissions. (JAL) currently uses two flight paths on the route but now will capitalize on work begun last November by the USA (FAA) and Japan's Ministry of Land, Infrastructure, Transport and Tourism on (UPR) usage. It will conduct trials on scheduled flights serving Tokyo Narita (NRT) - Honolulu (HNL), (NRT) - Kona, Osaka - (HNL), and Nagoya - (HNL). The group operates approximately 4,700 combined one-way flights per year on the routes. If (UPR)s were used on all Japan - Hawaii flights, (JAL) has estimated that it could reduce fuel consumption by some -3.4 million lbs, resulting in an emissions reduction of -4,700 tons and a cost savings of -¥180 million/-$1.6 million.
777-346ER (36127, JA740J), delivery.
September 2008: The Japanese economy shrank -3% in the second quarter.
Japan Airlines (JAL) will place its code on Jetstar Airways (IMU)'s 5x-weekly, Osaka Kansai - Gold Coast - Sydney from October 1, replacing the routing via Brisbane, and daily Tokyo Narita - Cairns from December 18. Will stop three China routes: Tokyo - Xian; Osaka - Qingdao; & Fukuoka - Shanghai.
Japan Airlines (JAL) said it is canceling cargo flights between Tokyo Narita and New York (JFK) from October 1, part of a reduction in freighter services for the second half of its fiscal year ending March 31. "The airline is currently facing a tough environment, particularly in terms of its North American freighter business," (JAL) said. "Even though the price of fuel has stabilized, it has remained at a very high level. Furthermore, the business outlook centering on North America remains gloomy." (JAL) plans to operate a fleet of seven 747-400Fs by the end of its fiscal year, one fewer than originally planned. It is canceling the conversion of a 747-400 into a freighter. By the end of November, it will retire its last two 747-200Fs. It also operates three 767-300Fs.
(JAL) will continue to operate cargo flights to Chicago O'Hare and Los Angeles (LAX), but will reduce from six to five, the number weekly 747-400F flights to (LAX) from October 1. "By concentrating on fewer freighter destinations in North America and adjusting demand and supply, (JAL) aims to speedily respond to changes in the business environment and further improve profitability," it said. It noted that it will continue to operate 2x-daily, passenger flights to (JFK) and utilize belly space to move cargo, followed by truck services from New York to Chicago, its primary USA freight gateway.
Japan Airlines Domestic (JAS) warned that some of its pilots (FC) and flight attendants (CA) are planning a one-day strike on domestic services on October 1. It projected that 24% of domestic flights will be cancelled with no impact on international services.
October 2008: Japan Airlines (JAL) ordered nine 767-300ERs, plus four 777s. The 767-300ERs are to fill capacity shortfalls caused by the late delivery of their 787s.
November 2008: Japan Airlines (JAL) will launch daily, 767 Osaka Kansai (KIX) - Seoul Gimpo (GMP) flights from January 10 as it lowers from 21 to 14 the number of weekly flights it operates between (KIX) and Seoul Incheon. It additionally will add its code to daily, A300 (KIX) - (GMP) Korean Air flights from December 1.
December 2008: Japan Airlines (JAL) said that it will operate a 747-300 test flight from Tokyo Haneda on January 30 in conjunction with Boeing (TBC), Pratt & Whitney (PWC) and Honeywell (SGC). It will use biofuel primarily derived from camelina plants. A blend of 50% biofuel and 50% traditional jet fuel will be tested in one of the airplane's four (JT9D) engines. The biofuel will be a mixture of three second-generation feedstocks: Camelina (84%), jatropha (under 16%) and algae (under 1%). The flight will be the first using fuel derived from camelina and the first to use a combination of three feedstocks. It also will be the first biofuel test flight on an airplane powered by Pratt & Whitney (P&W) engines. It will last about 1 hour. (JAL) Environmental Affairs VP, Yasunori Abe said, "In the air, we will check the engine's performance during normal and nonnormal flight operations, which will include quick accelerations and decelerations and engine shutdown and restart."
Japan Airlines (JAL) parent, (JAL) Group said it will participate "on a voluntary basis" in trials of a Japan-only emissions trading scheme (ETS) developed by the government and set to run through 2012. (JAL) is targeting a -16% cut in carbon dioxide emissions per (ASK) of its domestic fleet each year through 2012.
January 2009: Japan Airlines (JAL) announced an expanded code share agreement with British Airways (BAB) under which (JAL) will place its code on (BAB) flights from London Heathrow to Lisbon, Newcastle, Aberdeen, Edinburgh and Glasgow International beginning January 14.
(JAL) plans to cut -2,140 jobs from its International unit by April 2011 and eliminate -1,640 of those positions altogether, while the remainder will be transferred elsewhere in the company, a spokesperson told "Bloomberg News." The unit currently employs 16,240 and the move is part of an effort to reduce labor costs by an additional -$109 million. (JAL) said there will be no layoffs and that the job cuts will come through attrition.
(ANA) and Japan Airlines (JAL) each released plans for their fiscal years beginning April 1 that feature network cutbacks and a greater focus on operational efficiency. (ANA) said it intends to "minimize the risk of falling revenue" and is focusing on opportunities "afforded by the expansion" of Tokyo Haneda and Narita (NRT) in 2010. International capacity is expected to fall -8% (ASK)s in the upcoming fiscal year while domestic (ASK)s decline -4.3%. (ANA) will suspend flights from Nagoya to Tainjin and Guangzhou from March 29 and temporarily suspend and/or decrease frequency on five other Asian routes. Six additional services, including flights from (NRT) to Washington Dulles, Paris Charles de Gaulle and Frankfurt, will be operated with smaller airplanes.
Domestically, (ANA) faces intense competition from the Shinkansen bullet train and will continue to massage its Japanese operation with route changes and a greater focus on connecting flights and code shares. (ANA) launches service at the new Shizuoka Airport on June 4 and will fly daily to Sapporo and Okinawa. Kobe - Sendai service will be suspended on April 1. In addition, (ANA)'s Okinawa cargo hub is scheduled to be operational in October. Cargo capacity (ATKs) in 2009 to 2010 is expected to increase +30.6% year-over-year. (ANA) will take delivery of 17 airplanes during the fiscal year, including its first 787 in February 2010. (ANA) will retire seven.
(JAL), meanwhile, promised a "bold review of its network" as a result of "weak demand" and said it will increase the role of its (JAL) Express (JEX) and J-AIR subsidiaries, with the former flying internationally for the first time. (JAL) will suspend its daily Osaka Kansai (KIX) - London Heathrow service on March 29, launch a daily (NRT) - (KIX) connection service and adjust several other long-haul routes while down-gauging equipment on seven more. (JAL) Express (JEX) will begin flying from (NRT) to Hangzhou and from (KIX) to Hangzhou and Shanghai on May 8. (JAL) will suspend five domestic routes from (KIX) and end service on seven cargo routings.
February 2009: Japan Airlines (JAL)/(JAS) parent, the JAL Group reported a net loss of -¥38.5 billion/-$428 million for its fiscal third quarter ended December 31, reversed from a +¥13.1 billion net profit in the year-ago period, citing a "downward slide" in demand and "volatile" fuel prices. "The global economic slowdown and the accelerating appreciation of the yen led to a substantial year-on-year decrease in demand on Europe and USA routes throughout" the first nine months of its fiscal year, (JAL)/(JAS) said in a statement. It noted that it is in the process of "extensively restructuring its network," downsizing its fleet and reducing capacity.
Third-quarter revenue declined -13% to ¥485.7 billion, while expenses lowered -1.4% to ¥524.7 billion, leading to an operating loss of -¥39 billion, reversed from an operating profit of +¥25.9 billion in the year-ago period. The company did not break out quarterly traffic figures but stated that traffic decreased -12.5% for the nine months ended December 31 to 39.97 billion (RPK)s on a -4.5% dip in capacity to 60.75 billion (ASK)s, producing a load factor of 65.8% LF, down -6.1 points.
Looking ahead, the carrier projects a -¥34 billion net loss for the full fiscal year ending March 31, a downgrade from a November forecast of a +¥13 billion profit. In revising the forecast, (JAL)/(JAS) pointed to "severe conditions facing the air transport segment due to the decline in demand resulting from the current global economic slowdown."
Japan Airlines (JAL) conducted the latest biofuel test flight, operating a 747-300 partially powered by fuel derived primarily from the camelina plant. The 90-minute flight from Tokyo Haneda followed recent biofuel demonstration flights conducted by Air New Zealand (ANZ) and Continental Airlines (CAL). A 50/50 blend of traditional jet fuel and camelina-based biofuel powered one of the airplane's four Pratt & Whitney (P&W) (JT9D)s. It was the first biofuel test flight using (P&W) engines.
Keiji Kobayashi, who piloted the 747, said, "There was no difference at all in the performance of the engine powered by the biofuel blend and the other three engines." Camelina made up 84% of the biofuel, which also contained jatropha oil (under 16%) and algae oil (under 1%).
Honeywell (SGC) subsidiary (UOP) converted the plant-based crude oil to biofuel and then blended it with jet fuel. Sustainable Oils provided the camelina oil, while Terasol Energy and Sapphire Energy sourced the jatropha oil and algae oil respectively.
The JAL Group (JAL)/(JAS) will integrate four subsidiary airplane maintenance companies on October 1, forming (JAL) Engineering Company in a move intended to enhance productivity "and further strengthen the quality of airplane maintenance services through the consolidation of expertise and technological know-how," according to the airline. The four companies are (JAL) Narita Aircraft Maintenance Company, (JAL) Tokyo Aircraft Maintenance Company, (JAL) Engine Technologies Company, and (JAL) Aviation Technologies Company.
B/E Aerospace won Supplemental Type Certificate (STC) approval from the USA (FAA) to provide Japan Airlines (JAL) with cabin interior retrofit installation on 777-200s. The (JCAB) also validated the (STC). Prototype installation was completed in December at (JAL)'s Tokyo facility.
767-346ER (37547, JA620J), delivery.
March 2009: Seizing on strong demand for Korea trips among currency-assisted Japanese travelers, Japan Airlines (JAL) will increase Tokyo Narita (NRT) frequencies to Seoul this summer. On the other hand, it will reduce weekly frequencies to Beijing, Shanghai and Taipei from Tokyo (NRT), as well as to Hong Kong from Tokyo Haneda (HND).
The Japanese economy shrank -13% last quarter, the most since 1974.
Sustainable biofuels could be in use by airlines by 2014, experts confirmed. "We think it is quite reasonable that there will be commercial availability of some type in the next 3 to 5 years," (TBC) Managing Director Environmental Strategies, Bill Glover said. "One of the key enablers is really feedstock availability, the right feedstocks being available at the right price and with the right sustainability . . . It's a market that is going to evolve exponentially," added Jennifer Holmgren, VP & General Manager Renewable Energy & Chemical for (UOP), a Honeywell (SGC) subsidiary, who along with Glover, participated on a panel at the Aviation & Environment Summit in Geneva. She suggested steps may be necessary to "incentivize the first movers."
Airbus (EDS) VP Sustainability & Eco-Efficiency, Christian Dumas said that by 2025 "quite a bit of biofuel could be available . . . and we hope we could go faster than that." He and others cited price as a key unknown.
Glover noted that at the environmental summit, DHL announced it is sponsoring the planting of 24 million jatropha plants in Malawi this year and over the next five years intends to plant 250 million. Last week, Glover testified that aviation biofuels from jatropha, camelina and halophytes will be first, with algae a longer-term solution. Holmgren said that another source, cellulosic material, could become available as well in "a five-year timeframe," although she noted there are challenges to be overcome.
Speaking at the (FAA) Aviation Forecast Conference in Washington, (TBC) President & CEO, Scott Carson said he has been informed that camelina "is now going to planted on thousands of more acres [in North and South Dakota] than was planned [in those states] before the (JAL) test flight." (JAL) earlier this year operated a 747-300 partially powered by fuel derived primarily from camelina. Carson stated that plant oil-derived biofuels are "the future of our industry" and dismissed as "naysayers" those who have questioned whether such energy sources are viable. "These are sustainable plant-based fuel sources that don't compete with food crops," he said, adding that the test flights by (JAL) and other carriers produced "initial results that are positive and included a dramatic improvement in carbon emissions on the test airplane."
767-346ER (37548, JA621J), delivery.
April 2009: Japan Airlines (JAL)/(JAS) applied for a ¥200 billion/$2.03 billion loan from the Development Bank of Japan, a spokesperson confirmed to "Bloomberg News," which said (JAL)/(JAS) has ¥35 billion in bonds maturing over the next four months. (JAL)/(JAS) forecast a -¥34 billion net loss for the fiscal year ended March 31.
Japan Airlines (JAL)/(JAS) now expects to report a -¥63 billion/-$651.3 million loss in its fiscal year ended March 31, nearly double the -¥34 billion it forecast in February, owing to a "relentless" decline in global demand. "Premium travel out from Japan slid against the backdrop of continuous cost-cutting measures by companies in this economic situation," the company said, adding that increasing outbound leisure demand was offset by a strong yen that "eroded both business and leisure demand from overseas." Operating revenue now is expected to be ¥1.95 trillion, down -1.4% from the previously forecast total, and expenses are expected to be ¥2 trillion, rather than ¥2.01 trillion. Projected operating loss of -¥51 billion compares to the -¥37 billion forecast in early February.
(JAL)/(JAS) said it brought forward savings initiatives that originally were scheduled to be implemented at the start of the current fiscal year, resulting in a -¥13 billion drop in expenses for the period ended March 31. The final result also will be affected by (JAL)/(JAS)'s decision to halt the sale of unidentified assets due to their depreciation.
(JAS) transported 41.2 million passengers on domestic routes during the year, down -1.8%, and flew 31.3 billion (RPK)s traffic, a -1.4% decline. Capacity fell -1.8% to 49.17 billion (ASK)s and load factor was 63.7% LF. (JAL) International passenger numbers dropped -12.4% to 11.7 million on a -13.6% fall in (RPK)s to 52.19 billion. Capacity slid -5.4% to 79.58 billion (ASK)s and load factor was 65.6% LF.
Canada and Japan announced an expanded air services agreement that will grant Canadian airlines unlimited access to cities outside Tokyo and offers access to Haneda "under certain conditions," Transport Canada said.
Japan's Ministry of Land, Infrastructure, Transport & Tourism increased the number of landing slots at Tokyo Haneda as a temporary measure "to support Japan's airline industry during the current difficult economic environment," Japan Airlines (JAL)/(JAS) said. (JAS) will use its allotment to operate an eighth daily flight to Hiroshima from May 8 to May 31 and a 20th daily flight to Fukuoka from June 1 to June 30. Additional flights in the July to October period have not been determined. (JAL) also said it will reduce its daily, Tokyo Narita - Delhi service to four-times-weekly from June 1 to October 24.
May 2009: Japan Airlines (JAL)/(JAS) blamed the economic downturn for a net loss of -¥63.1 billion/-$651.2 million for the fiscal year ended March 31, a -¥80 billion reversal from a net profit of +¥16.9 billion in the prior year. (JAL)/(JAS) recorded a -12.5% decline in revenue to ¥1.95 trillion. The result was in line with its forecast issued on April 28. It reported that while international passenger yields rose +8%, (RPK) demand fell -13.6%, resulting in a -6.7% drop in international passenger revenue to ¥703.5 billion. Domestic revenue eased -1.6% to ¥665.5 billion. International cargo revenue slumped -23% to ¥152.1 billion.
(JAL)/(JAS) achieved major strides in cost-cutting across the group that resulted in savings of -¥138.3 billion. Operating loss was -¥50.8 billion compared to an operating profit of +¥90 billion for Fiscal Year (FY) 2008.
(JAS) transported 41.2 million domestic passengers last year, down -1.8%, and flew 31.3 billion (RPK)s traffic, a -1.4% decline. Capacity fell -1.8% to 49.17 billion (ASK)s and load factor was 63.7% LF. (JAL) International passenger numbers sank -12.4% to 11.7 million on a -13.6% fall in (RPK)s to 52.19 billion. Capacity slid -5.4% to 79.58 billion (ASK)s and load factor was 65.6% LF.
(JAL)/(JAS) is forecasting further decreases in revenue of ¥203.1 billion in the current year but hopes to offset that with a -¥195 billion reduction in operating expenses and thus expects operating income to be only marginally lower than the figures posted in (FY) 2009. It estimated that the net loss will be much the same.
(JAL)/(JAS) will defer ¥100 billion in investments in the current fiscal year, which includes ¥80 billion related to adjustments to the payment period for new airplanes. It said it will forge ahead with its medium-term revival plan announced in January.
(JAL) and Qantas (QAN) will expand their code share agreement to include services between Australia (Sydney, Melbourne, Brisbane and Perth) and Japan (Tokyo Narita and Osaka Kansai) via Singapore from June 1. (JAL) also said it will place its code on Korean Air (KAL)'s daily, Incheon - Shizuoka service beginning June 4.
2 767-346ERs (37549, JA622J; 36131, JA623J), deliveries.
June 2009: The Japanese government is preparing to extend a loan of approximately ¥100 billion/$1.04 billion to Japan Airlines (JAL)/(JAS), Finance Minister, Kaoru Yosano said. Speaking to reporters, Yosano said he received a request from Transport Minister, Kazuyoshi Kaneko for the loan through the Development Bank of Japan (DBJ). "We hope to cooperate through (DBJ) loans" but the aid only will be granted "on the premise that [JAL] must do its best to improve management," he said. According to the Nikkei, the government is considering guaranteeing some 80% of the loan and three private sector banks are participating.
(JAL) unveiled a series international schedule cuts as it attempts to halt the bleeding that resulted in a -¥63.1 billion loss in the fiscal year ended March 31. (JAL) elaborated slightly on its "medium term" plan, which it expects to release in full by late September and which is designed to produce a business model "that does not overly rely on the recovery in the economy, but instead, to look within the company and implement sweeping cost cuts across the group wherever possible." (JAL)/(JAS) said it will cut seven domestic routes and one international route this fiscal year and will continue switching to smaller, more fuel-efficient airplanes.
Citing the "slow recovery in air transport demand," Japan Airlines (JAL) said it would "strive to improve profitability by adjusting capacity" and announced a reduction in its international schedule effective July 1. (JAL)/(JAS) reported a -¥63.1 billion/-$640.9 million net loss in the fiscal year ended March 31 and said it expects a similar result this term. Cuts in service implemented in March to Shanghai Pudong (PVG), Beijing (PEK), Taipei and Hong Kong (HKG), originally set to expire at the end of this month, will be reimposed. Tokyo Narita (NRT) - (PVG) will operate 21-times-weekly instead of 28 from August 1 to October 24, (NRT) - Taipei will operate 21-times-weekly instead of 28 from July 1 to October 24 and (NRT) - (PEK) will operate 14x-weekly instead of 19 August 1 - October 24. Tokyo Haneda - (HKG) will operate 3x-weekly rather than daily, September 1 to 17 and October 12 to 24.
New cuts will occur on flights from (NRT) to Incheon (to 21x-weekly from 28 July 1 to October 24) and New Delhi (to 3x-weekly from 4x-weekly July 1 to October 24) and from Osaka Kansai to (PVG) and Incheon (both to 14x-weekly from 21 August 1 to October 24).
(JAL) said unions representing (JAL) International pilots (FC), flight attendants (CA) and ground staff (MT) have threatened to strike. The (JAL) Pilots Union (660 members) "indicated plans" for a 72-hour strike, the (JAL) Labor Union (90) and (JAL) Japan Labor Union (660) flagged a 6-hour strike and the (JAL) Flight Crew Union (1,150) threatened a 24-hour walkout. (JAL)/(JAS) said only a pilot (FC) strike extending into a third day would affect domestic flight operations while its international schedule would operate normally. "The unions are still in negotiations with (JAL)/(JAS) management," the airline said. It was unclear weather the strike warnings were related to the aforementioned schedule cuts.
Later, (JAL) said the strikes scheduled to start by four (JAL) International unions were cancelled and that all flights were expected to operate normally.
July 2009: Japan Airlines (JAL)/(JAS) reported a steep -¥99 billion/-$1.04 billion net loss for its fiscal first quarter ended June 30, dramatically widened from a -¥3.4 billion loss in the year-ago period, and announced "drastic adjustments" to its international flight network. (JAL)/(JAS) said that operating conditions in the quarter were "starkly harsher" than the prior-year quarter, pointing to "significantly down" first (F) and business class (C) traffic and the swine flu scare. "The reduction in fuel surcharge and decline in the number of premium travelers led to a -33.7% decrease in yield . . . further contributing to the -46.1% drop in revenue from international passengers," (JAL)/(JAS) stated.
It said that in the second half of its fiscal year flights between Nagoya and Paris Charles de Gaulle and Seoul Incheon will be discontinued and frequencies will be reduced on eight international routes. For example, Tokyo Narita (NRT) - Guangzhou weekly flights will be lowered from 14 to 7, and Osaka - Shanghai Pudong weekly flights will be reduced from 21 to 14 from October 25.
In addition, it will initiate "a major downsizing of airplanes" that will affect 15 flights on 14 international routes "where jumbo 747-400s will be switched to medium-sized 777s and 767s, and medium-sized 767s will be switched to even smaller 737s." For example, flights between (NRT) and Chicago O'Hare, Los Angeles, New Delhi, Singapore and Bangkok will be operated with 777s instead of 747-400s from October 25.
(JAL)/(JAS) said leisure passenger demand "shows signs of recovery as a fear of a pandemic recedes" but it warned that "business (C) travel is projected to remain slow." It said it "will persevere in the drastic adjustments to our network, downsizing our airplanes and implementing 'nothing-off-limits' cost-cutting measures to improve profitability." It maintained its Fiscal Year (FY) 2009 to 2010 full-year forecast of a -¥63 billion net loss on ¥1.7 trillion in revenue.
Fiscal first-quarter revenue fell -31.7% to ¥334.8 billion, while expenses lowered -13.4% to ¥421 billion, producing an operating loss of -¥86.1 billion, reversed from a +¥3.9 billion operating profit in the year-ago period. Traffic decreased -20.6% to 16.41 billion (RPK)s on a -12.3% cut in capacity to 28.26 billion (ASK)s, producing a load factor of 58.1% LF, down -6 points.
(JAL) and Air France (AFA) will expand their code share network July 7 with daily, Paris Charles de Gaulle - Istanbul Ataturk service operated by (AFA).
(JAL)'s last 747 Classic, a 747-300, operated its final flight from Honolulu to Tokyo Narita. The airplane was in service for 26 years. (JAL) took delivery of its first 747-100 in 1970 and operated a record 65 747 Classics in 1987 through 1989. The 747-300 will be replaced by a 777-300ER.
August 2009: Japan Airlines (JAL) and Nippon Cargo Airlines (NCA) parent, Nippon Yusen said that the (JAL)/(NCA) are in talks to merge (JAL)'s cargo operations with (NCA), according to widespread press reports. The two cargo operations reportedly could operate as a merged entity as early as April 1, 2010.
Japan Airlines (JAL)/(JAS), coming off a more-than->$1 billion loss in its fiscal first quarter ended June 30, announced a "new corporate organization structure" aimed at streamlining internal processes and improving customer service. The revamped structure eliminates or consolidates "numerous intermediary functions within the organization in order to speed up decision-making processes that will strengthen the Group's overall efficiency, as well as to minimize the backend and overhead costs, which is a measure in line with (JAL)/(JAS)'s cost-reduction plans," the company said. The number of functional groups within the company will be reduced by -25%, as divisions are reorganized.
Its 100%-owned subsidiaries that provide airport-related services will be merged. JAL Sky Services, JALSky Tokyo and JALWave will form a new company called JAL Sky. The group previously announced that it would integrate its four subsidiary airplane maintenance companies on October 1, forming (JAL) Engineering. Also being combined are (JAL)-owned travel-related subsidiaries JALPAK, (JAL) Sales, (JAL) Sales Western Japan, (JAL) Sales Kyushu and (JAL) Sales Hokkaido.
(JAL)/(JAS) will establish a new Customer Experience Division with the purpose of centralizing "the planning functions involving the hardware, software and human-relation aspects of customer satisfaction." Executive VP & Assistant to the President, Corporate Planning, Tetsuya Takenaka has been put in charge of the new division.
(JAL) recently announced "drastic adjustments" to its international flight network.
2nd "Eco Jet' a 777-346ER (JA731J - - SEE PHOTO - - "JAL-777-300ER-AUG09"), delivery with green colors, starts Tokyo-Narita to Singapore.
It will be assigned to key international destinations such as London, Paris, Frankfurt and Seoul. The first "Eco Jet" (a 777-246) continues operating primarily on domestic routes for (JAS).
September 2009: Anxious for a financial boost in the wake of a -¥99 billion/-$1.08 billion loss in its fiscal first quarter ended June 30 and an increasing debt burden, Japan Airlines (JAL) launched negotiations with Oneworld (ONW) partner, American Airlines (AAL) and SkyTeam (STM) rival, Delta Air Lines (DAL) concerning a potentially significant investment, according to multiple sources. (DAL) is interested in investing in the struggling (JAL). (DAL) already has a major presence in Japan thanks to Northwest Airlines (NWA)'s hub at Tokyo Narita, but a partnership with (JAL) also might offer a foothold at Haneda, which is expanding its international profile. (DAL) has $5.4 billion in unrestricted liquidity, including $4.9 billion in cash, equivalents and short-term investments. (JAL) expects to lose -¥63 billion in the fiscal year ending March 31, 2010.
Japan Civil Aviation Bureau Director General, Ryuhei Maeda told "Bloomberg News" that the (DAL) reports "are probably true" and that such an arrangement "is one of the ideas I have strongly recommended" to (JAL). The TV network reported that (DAL) would become (JAL)'s largest shareholder if the deal goes through. In its "Airline Industry Weekly," Merrill Lynch said a capital injection from (DAL) "would likely include" a marketing arrangement that would "lead to doubts" about (JAL)'s continued membership in Oneworld (ONW). It said (DAL) would "gain tremendously" from the arrangement. It said (JAL)'s equity value is approximately $5.5 billion and that (DAL) would be acquiring a stake "at a historically depressed level."
A (JAL) spokesperson said that the airline would not comment on the reports, adding that "(JAL) is looking at a wide range of measures, including potential tie-ups with other airlines. But thus far, no decision has been made on any."
It became apparent that American (AAL) is one of those "other airlines." A spokesperson for parent (AMR) Corporation told the "Associated Press (AP)," "We are in discussions at the senior executive level in Japan with (JAL)." Another source told (AP) that the arrangement would include a joint venture (JV) that would seek antitrust immunity, similar to the one, several Oneworld (ONW) airlines are pursuing for transatlantic services. Expanded code sharing and an investment in (JAL) also are under discussion.
Sources told "The Wall Street Journal" that AMR's negotiations with (JAL) have been "intensive" and that (AAL) is willing to invest hundreds of millions of dollars in the deal. The reports coincided with full-delegation "open skies" negotiations between the USA and Japan in Washington.
British Airways (BAB) said that it has gotten involved in American Airlines (AAL)'s talks with Japan Airlines (JAL) as part of an effort to keep (JAL) in the Oneworld (ONW) fold, while Japan's new government indicated it may not be fully supportive of the carrier's restructuring plan. (JAL) confirmed that it was in talks with both American Airlines (AAL) and Delta Air Lines (DAL) regarding one of those carriers potentially taking a stake, and said it hoped to reach accord on a tie-up by mid-October. (BAB) confirmed to "The Wall Street Journal" that it also is engaged in talks with (JAL), which a spokesperson said is "valuable to us as part of (ONW)." The paper reported that other (ONW) carriers are involved in talks about possible further cooperation, driven by fear that a (JAL)/(DAL) deal could lead it to jump to the SkyTeam (STM) alliance, which lacks a Japanese affiliate.
Meanwhile, (JAL)'s restructuring plan may have to be revised in the wake of the Democratic Party of Japan (DPJ)'s decisive defeat of the long-entrenched Liberal Democratic Party (LDP) in national elections. The new government is reviewing (LDP) policies and financial help for (JAL) appears to be part of the examination.
While (JAL) is a private carrier, it has been receiving loans from the Development Bank of Japan to mitigate its steep losses, including a ¥99 billion/$1.09 billion deficit for its fiscal first quarter ended June 30. The former government established a panel to which (JAL) is required to report regarding its restructuring as a condition for receiving the aid and the panel signaled support for a planned -14% workforce reduction.
But Seiji Maehara, in his first press conference as Transport Minister, said that the (DPJ) government "would like to go back to the drawing board" on the (JAL) oversight panel. "I would like to hear advice from a variety of viewpoints regarding Japan's aviation policy," he told reporters, adding that he wants to "take a thorough look at whether the plan to restructure (JAL) can realistically be implemented."
(JAL) reportedly is planning to seek an additional ¥100 billion in government-backed loans in coming months. (DPJ) swept to victory in part by promising voters to be less business-friendly and more consumer/worker-oriented, leading to speculation that it may be wary of (JAL)'s planned job cuts.
(JAL)/(JAS) President, Haruka Nishimatsu is scheduled to meet with new Japanese Transport Minister, Seiji Maehara for the first time to discuss the airline's restructuring plan, "Nikkei" reported. There is speculation in Japan that (JAL)/(JAS)'s restructuring may be revised in the wake of the Democratic Party of Japan (DPJ)'s recent election triumph. (DPJ)'s Maehara has said he wants to "take a thorough look" at (JAL)/(JAS)'s plan, particularly since it continues to seek financial support from the Development Bank of Japan.
(JAL)/(JAS) President, Haruka Nishimatsu asked Seiji Maehara, Japan's new Transport Minister, for a government bailout, conceding that even a cash infusion from a foreign investor likely won't be enough to keep the troubled carrier afloat. Nishimatsu declined to say how much capital (JAL)/(JAS) is seeking from the government when talking to reporters following a meeting with Maehara. (JAL)/(JAS), which lost -¥99 billion/-$1.09 billion in its fiscal first quarter ended June 30, received government-backed loans from the Development Bank of Japan totaling around ¥100 billion in June and is in talks with (AAL) and (DAL) about one of them potentially taking a stake.
"The Financial Times," citing sources familiar with the situation, said (JAL)/(JAS) needs another ¥100 billion to maintain operations through early 2010 and ultimately hopes to raise more than >¥225 billion in new capital and loans. It previously announced a restructuring plan cutting -14% of its workforce, or nearly -6,800 jobs, over the next three years, while eliminating -50 routes, with a heavy emphasis on international reductions.
But following his meeting with the (JAL)/(JAS) President, Maehara told reporters that he's "not convinced" the company's restructuring plan will work. "I'm skeptical about the feasibility of (JAL)/(JAS)'s rehabilitation plan, so at this stage I have yet to say whether the government will inject public funds in (JAL)/(JAS)," he said. He added that he will consult with Prime Minister Yukio Hatoyama and plans to reach a decision "as soon as possible."
He rejected the notion that the government would take over (JAL)/(JAS) or force it to break up into smaller parts. "We are not considering anything other than for (JAL)/(JAS) to rebuild on its own," he said. Nishimatsu noted that (JAL)/(JAS) may need to revise its restructuring plan, possibly making deeper cuts, to secure government help.
Japan's Transport Minister said on Japanese TV that he will not force Japan Airlines (JAL)/(JAS), Asia's largest carrier by revenue, into bankruptcy, according to the "Associated Press (AP)." "We will not crush and liquidate [the airline]," Land, Infrastructure & Transport Minister, Seiji Maehara said on a TV Asahi talk show. "It's just impossible," the (AP) reported him as saying. The government set up a team of corporate directors to create a restructuring plan for (JAL)/(JAS), whose own draft reconstruction plan Maehara called "insufficient." The team is expected to make recommendations to the Transport Minister by early November. (JAL)/(JAS), which lost -¥99 billion/-$1.09 billion in its fiscal first quarter ended June 30, received government-backed loans from the Development Bank of Japan totaling around ¥100 billion in June, and is in talks with (AAL) and (DAL) about a potential stake sale. It revealed that it needs ¥450 billion through March 2011 for debt repayment.
2 777-346ERs (36128, JA741J; 36129, JA742J), deliveries.
October 2009: Japanese Transport Minister, Seiji Maehara moved to calm nerves over the fate of Japan Airlines (JAL)/(JAS), saying at a news conference that he believes (JAL)/(JAS) can revive itself on its own but that "the government is ready to step in" and offer its support for the loss-making carrier. He told reporters he wanted to quell "excessive anxiety" about the airline, which is restructuring under government supervision after receiving a state-backed loan. "I believe (JAL)/(JAS) still has more than enough reserve power, but in case the worst happens, the government will support," Maehara said.
(JAL)/(JAS) likely won't reach an accord with a potential foreign investor until after it and the Japanese government settle on a firm restructuring plan for the carrier, according to multiple media reports. (JAL)/(JAS) confirmed last month that it was in talks with both American Airlines (AAL) and Delta Air Lines (DAL) regarding one of those carriers potentially taking a stake and said it planned to reach agreement on a tie-up by mid-October. But the country's new Democratic Party of Japan-led government, which took office last month, has expressed misgivings about (JAL)/(JAS)'s restructuring plan, which had been largely endorsed by the previous Liberal Democratic Party government. Further complicating the issue is (JAL)/(JAS)'s recent request for a government bailout.
Japanese Transport Minister Seiji Maehara has said he's "not convinced" the company's restructuring plan, which calls for cutting about -6,800 jobs and significantly reducing international flying, will work. While a stake sale reportedly won't be agreed to by mid-October as originally hoped, (DAL) and (AAL) both are believed to remain interested in acquiring part of (JAL)/(JAS).
Later, (JAL)/(JAS) was not commenting on reports in the Japanese media that it would seek ¥250 billion/$2.78 billion in debt forgiveness from its creditors and increase its planned job cuts to -9,000. The country's new Democratic Party of Japan-led government, which took office last month, has expressed misgivings about (JAL)/(JAS)'s restructuring plan, which calls for cutting -14% of its workforce, or nearly -6,800 jobs, over the next three years, while eliminating -50 routes, with a heavy emphasis on international reductions.
According to the "Kyodo" news agency, (JAL)/(JAS) has developed a revised plan that calls for significant debt forgiveness and slashes an additional -2,200 jobs. The report also stated that Nishimatsu would resign, which the airline denied.
(JAL)/(JAS) lost -¥99 billion in its fiscal first quarter ended June 30 and received government-backed loans from the Development Bank of Japan totaling around ¥100 billion in June. "Kyodo" reported that the carrier's largest creditors are DBJ with ¥230 billion in total loans, Mizuho Corporate Bank with ¥57 billion in loans, Bank of Tokyo-Mitsubishi UFJ at ¥53 billion, and Sumitomo Mitsui Banking Corporation with ¥37 billion.
Japanese Transport Minister Seiji Maehara once again attempted to ease fears about (JAL)/(JAS)' weak financial prospects, saying at a news conference that "there is no change at all in our policy that the government will back up" the airline if it is in imminent danger of collapse. (JAL)/(JAS)'s share price hit a seven-year low, driven by concern over the struggling carrier's effort to develop a viable restructuring plan. Maehara expressed misgivings about (JAL)/(JAS)'s prior plan, which called for cutting -14% of its workforce, or nearly 6,800 jobs, over the next three years while eliminating 50 routes, with a heavy emphasis on international reductions. He told reporters that "the creation of a new restructuring plan is going smoothly."
Japan's Finance Minister is planning to meet with the country's Transport Minister to discuss a potential government bailout of Japan Airlines (JAL)/(JAS), which saw its weakened financial status deteriorate further over the weekend when its largest creditors balked at providing ¥300 billion/$3.3 billion in debt relief and equity swaps. (JAL)/(JAS) and a government task force overseeing its restructuring, proposed the relief plan but were rebuffed by the banks and asked to present a different plan, according to Japanese media reports. (JAL)/(JAS)'s biggest creditors reportedly are the Development Bank of Japan with ¥230 billion in total loans, the Mizuho Corporate Bank with ¥57 billion, the Bank of Tokyo-Mitsubishi UFJ at ¥53 billion, and the Sumitomo Mitsui Banking Corporation with ¥37 billion.
(JAL)/(JAS)'s initial restructuring plan, which called for -6,800 job cuts and slashing about 50 international routes, was deemed insufficient by Japan's new Democratic Party of Japan-led government. But Transport Minister, Seiji Maehara repeatedly has assured that "the government will back up" the airline if it is in imminent danger of collapse. The "Kyodo" news agency reported that Finance Minister, Hirohisa Fujii will meet with Maehara to discuss (JAL)/(jas), with options under consideration ranging from presenting the creditors with a new plan to a government bailout. (JAL)/(JAS) may be forced to sell its (JAL) Hotels subsidiary, according to the report, which added that (JAL)/(JAS)'s operating loss for its fiscal year ending March 31, 2010, is expected to exceed -¥200 billion.
Gerson Lehrman analyst, Daniel Lintz wrote in an analysis that "an injection of public funds remains the only viable option" for (JAL)/(JAS), estimating that "a figure approaching ¥1 trillion would seem . . . realistic, given the company's steep operating losses over the past two years and its stark earnings forecast." He added, "Without a doubt, (JAL)/(JAS) is too big to fail. (JAL)/(JAS) provides exclusive service on more than a handful of domestic routes and supports a broader food chain encompassing more than >100 affiliates and partners worldwide." He argued that the transport ministry should act because it "is complicit in creating the privatized carrier's bloated labor and pension cost structure and preserving its unprofitable domestic route schedules and fare structure."
The Japanese government and Japan Airlines (JAL)/(JAS) reportedly will unveil a new turnaround plan for the troubled carrier later this week that will include slashing -13,000 jobs and giving a new government-backed agency control over (JAL)/(JAS)'s restructuring process. "Kyodo News" reported that the new plan will nearly double the -6,800 job cuts that were called for in (JAL)/(JAS)'s original restructuring proposal. The reductions would be carried out in phases and concluded by March 2015, according to the report.
"Nikkei" reported that Enterprise Turnaround Initiative Corporation (ETIC) of Japan, a newly created quasi-government entity that is charged with buying debt from strapped companies and providing them with specialists to help oversee restructuring programs, will be put in charge of (JAL)/(JAS)'s turnaround. The report stated that (ETIC) could provide loan guarantees to enable skittish banks to lend (JAL)/(JAS) money, or could even lend funds directly to the airline. It reportedly needs a ¥200 billion/$2.17 billion loan to enable it to stay afloat through the end of its fiscal year that concludes March 31.
Meanwhile, foreign investors continued to show interest in taking stakes in (JAL)/(JAS), which last month revealed that it had held talks with both American Airlines (AAL) and Delta Air Lines (DAL) regarding one of those carriers investing in it. "Bloomberg News" reported that (DAL) has contracted Fleishman Hillard to help it lobby the Japanese government on the issue.
Later, (JAL)/(JAS) said it is seeking guidance on a turnaround plan from Enterprise Turnaround Initiative Corporation (ETIC) of Japan, a move that represents a formal first step toward a likely government-backed restructuring. (ETIC) is a newly created quasi-government entity designed to help rescue struggling companies. (JAL)/(JAS) said in a statement that it initiated a "preliminary consultation" with (ETIC) "to decide whether it would support the restructuring of our group." It added that "under" (ETIC) guidance, it would "render our maximum efforts in preparing a restructuring plan at the earliest opportunity that is satisfactory to all and strenuously strive to revitalize our business." (ETIC), which is charged with buying debt from strapped Japanese companies and providing them with specialists to help oversee restructuring, is designed specifically to target companies that "have revitalization potential but are carrying excessive debt."
Turning to (ETIC) was recommended by a task force set up by Transport Minister, Seiji Maehara to advise both (JAL)/(JAS) and the government on the best course of action. Task force head, Shinjiro Takagi told reporters that "reviving (JAL)/(JAS) will require a substantial amount of money, including public money." According to Japanese media reports, (ETIC) can provide loan guarantees to enable skittish banks to lend (JAL)/(JAS) money and also orchestrate direct financial support from the government. It additionally would oversee (JAL)/(JAS)'s restructuring plan, determining the right number of job cuts and route reductions. (JAL)/(JAS) initially proposed cutting -6,800 jobs but reportedly will be forced to slash at least -13,000 positions.
Maehara told reporters that (JAL)/(JAS) "is not your ordinary company" and the government is committed to keeping the carrier afloat. "If (JAL)/(JAS) were to stop flying, there would be serious repercussions for Japan's economy," he said. But he added that significant cost-cutting will be demanded by the government in exchange for public support. Maehara's Democratic Party of Japan last month replaced the long-entrenched Liberal Democratic Party after a decisive election victory. He complained that the previous government mistakenly provided bailout money to (JAL)/(JAS) without forcing the carrier to reform its cost structure. For example, it received around ¥100 billion/$1.1 billion in government-backed loans in June without being required to make significant changes. "Under the previous administration, there was no real due diligence, no real turnaround strategy," he said. In addition to mandating a tough restructuring plan, he said he also is pressing for legislation that would ease (JAL)/(JAS)'s heavy pension burden.
(JAL) downsized from 747-400s to 777-300ERs on flights from Tokyo Narita to Los Angeles and Chicago O'Hare.
Japan Airlines (JAL) conducted an (ASPIRE) (Asia and South Pacific Initiative to Reduce Emissions) flight on October 10 - 11. (ASPIRE) is a joint venture among USA (FAA), Air services Australia and Airways New Zealand. Three previous (ASPIRE) flights were conducted by United Airlines (UAL), Qantas (QAN) and Air New Zealand (ANZ).
ASPIRE flights use a host of optimized operational procedures and Air Traffic Control (ATC) routings, including tailored arrivals, to save time and fuel. "This is an important milestone in our collective effort to lessen aviation's environmental footprint," said (FAA) Administrator, Randy Babbitt, who signed the agreement along with Japanese Civil Aviation Bureau Director General, Ryuhei Maeda.
The October 10 - 11 747-400 flight was operated by (JAL) subsidiary JALways (JAI) on a scheduled trip from Honolulu to Osaka. Although specific results of the flight have not been disclosed, (JAL) previously had announced that it aimed to reduce fuel burn by -9,421 lbs and carbon dioxide emissions by -28,969 lbs through a variety of means: A precise estimate of fuel required for the flight, lighter cargo containers, reducing the weight of items loaded on board, including cabin attendants (CA)'s carry-on baggage, maximizing the use of ground electricity instead of the Auxiliary Power Unit (APU), engine washing, two-engine taxi, changing the runways for takeoff and landing to shorten taxi distance, faster climb to optimum cruise altitude, utilizing user preferred route, Dynamic Airborne Rerouting (DARPS), delayed flap and gear approach, and reduced reverse thrust.
Japan intends to transform Tokyo’s Haneda airport into the country’s
premier international hub, according to officials in the country’s
newly elected government. In fact, the new Transport Minister
aims to have half of all Haneda flights be international, noting that
Seoul’s Incheon hub is currently more competitive as a northeast
Asian gateway because of its combined domestic and international
networks. But that worries airports in other cities like Osaka and
Nagoya, which currently benefit from the domestic/international
split between Tokyo’s two airports. In fact, some politicians in
Osaka are advocating the closure of the city’s domestic oriented
Itami airport to consolidate traffic into the larger Osaka airport.
Next fall, Haneda will get a fourth runway and Narita will get an extended runway. Both will contribute to significant
increases in capacity handling.
Tokyo Narita's newly extended runway entered service, five months ahead of the original schedule, according to Narita International Airport Corporation. Runway B was lengthened to 2,500 m from 2,180 m. Runway A measures 4,000 m. The airport will have 20,000 additional slots available per year starting March 28.
777-346ER (36130, JA743J), delivery.
November 2009: Troubled Japan Airlines (JAL)/(JAS) reported a net loss of -¥32.1 billion/-$357 million for its fiscal second quarter ended September 30, reversed from a +¥40.1 billion profit in the year-ago period, and announced it has applied for "certified alternative dispute resolution," an out-of-court mediation process that enables strapped Japanese companies to negotiate debt settlements with creditors. The quarterly loss brought (JAL)/(JAS)'s fiscal first-half deficit to -¥131.2 billion, reversed from a +¥36.6 billion profit in the year-ago period and its worst first-half performance since the 2002 (JAL)/(JAS) merger. (CFO), Yoshimasa Kanayama conceded that the result, driven by the global economic downturn, was "extremely bad."
While Japanese government officials had indicated that elements of a restructuring plan could be unveiled prior to the results release, (JAL)/(JAS) said that "agreement regarding the proposed business revitalization plan has not yet been reached between the parties concerned." Its turnaround is expected to be overseen by the Enterprise Turnaround Initiative Corporation (ETIC) of Japan, a newly created quasi-government entity designed to help rescue struggling companies. But it may take (ETIC) some time to finalize a restructuring plan, necessitating the application for third-party mediation that could result in immediate debt relief while the turnaround strategy is formulated. In addition, the Development Bank of Japan may extend a bridge loan and the Japanese government is pushing for special legislation that would ease (JAL)/(JAS)'s pension burden. Kanayama said the company will need around ¥125 billion in loans to enable it to get through the second half of its fiscal year ending March 31.
Meanwhile, President, Haruka Nishimatsu said (JAL)/(JAS) would like to decide on an international tie-up by year end. American Airlines (AAL) and Delta Air Lines (DAL) have been jockeying to make an investment in (JAL)/(JAS), with (JAL)/(JAS)'s continued participation in the Oneworld (ONW) alliance or a switch to the SkyTeam (STM) alliance at stake. Nishimatsu told reporters it would "make more sense" to remain a part of the Oneworld (ONW) alliance, according to "Bloomberg News."
Fiscal second-quarter revenue fell -26.4% to ¥429 billion, while expenses lowered -21.2% to ¥438.7 billion, producing an operating loss of -¥9.6 billion, reversed from an operating profit of +¥26.4 billion last year. First-half traffic decreased -10.9% to 39.01 billion (RPK)s on an -8.5% cut in capacity to 60.42 billion (ASK)s, producing a load factor of 64.6% LF, down -1.7 points. Passenger yield plunged -35.5% year-over-year.
Japan Airlines International (JAL) announced closure of the following international routes: Osaka Kansai (KIX) - Hangzhou, Tokyo Narita (NRT) - Hangzhou, (NRT) - Qingdao (both passenger and freighter service), (NRT) - Xiamen (all on Dec. 7), (KIX) - Busan, (KIX) - Hanoi (both January 12), (KIX) - Singapore - Kuala Lumpur (January 17) and (NRT) - Vancouver (YVR) - Mexico City (January 18). It will close its offices in Hangzhou, Qingdao, Xiamen and Mexico City. (JAL) will code share with Mexicana (CMA) to serve Mexico City via Los Angeles and San Francisco. It will cut one of four daily, (NRT) - Taipei and one of two daily, (NRT) - London Heathrow frequencies from December 7 while increasing (NRT) - (YVR) service to daily from five-times-weekly effective January 18. On the domestic front, (JAS) will cease flights from Nagoya Chubu to Kumamoto (February 1), Hanamaki and Kushiro (both May 6) and from Kobe to Sapporo, Okinawa Naha (OKA) and Ishigaki (all on June 1). Tokyo Haneda - Kobe service will be discontinued on April 1 and Kitakyushu - (OKA) flights will end May 6. (JAL) will decrease frequencies on Tokyo Narita - Sao Paulo via New York (JFK) and Tokyo Narita - Shanghai Pudong. (JAL) will use smaller airplanes on its flights from Tokyo to Beijing and Hong Kong.
(JAL)/(JAS) is expected to report a heavy loss for its fiscal first half ended September 30, increasing pressure on (JAL)/(JAS) and the Japanese government to develop a restructuring plan to help assure investors and customers that the troubled company won't collapse.
"We will not create a situation in which airplanes do not fly," Transport Minister, Seiji Maehara insisted to reporters, adding that short-term government financing and other rescue measures could be unveiled in advance of the earnings release. (JAL)/(JAS)'s turnaround is expected to be overseen by the Enterprise Turnaround Initiative Corporation of Japan, a newly created quasi-government entity designed to help rescue struggling companies.
According to Japanese media reports, a key issue is the carrier's pension funding deficit, estimated to be more than >¥300 billion/$3.3 billion. Maehara has said he is pressing for legislation that would ease (JAL)/(JAS)'s pension burden and creditors reportedly are willing to provide relief if the government can help solve the pension problem. Creditors last month balked at supplying around ¥300 billion in debt relief and equity swaps. Pension relief legislation could be introduced as soon as next week, according to multiple reports.
Meanwhile, (JAL)/(JAS) announced that President, Haruka Nishimatsu and about 70 top executives will forego pay in December. "Agence France Presse" reported that (JAL)/(JAS) also is considering asking 17,000 nonexecutive employees to forego winter bonuses. Once a restructuring plan is developed, (JAL)/(JAS) likely will resume negotiations with Delta Air Lines (DAL) and American Airlines (AAL) about one of those carriers potentially taking a stake.
(JAL)/(JAS) President, Haruka Nishimatsu told former employees that the company's pension benefits must be cut significantly to enable it to become sustainable long-term. Its pension funding deficit, estimated to be more than ¥300 billion/$3.37 billion, is making both its creditors and the Japanese government wary about providing relief.
Nishimatsu addressed a large audience of retired (JAL)/(JAS) workers, personally apologizing for the weak state of the airline and proposing that retirees' benefits be slashed by -30% while current employees' pension benefits would be cut by -50% for a total collective reduction exceeding -40%. "With our current state, it will be difficult to turn around the company without public funds," he told the group, according to "Kyodo News." "I first want to explain the fact that pension reforms will be necessary to reconstruct our company through obtaining public funds in a way that can gain public acceptance."
Following the address, he told reporters that he is seeking current and former workers' "understanding" that it is necessary for pension benefits to be "largely slashed by over -40%." He added, "Without revising the pension plan, we cannot move forward" on a restructuring program. Nishimatsu told the former workers that he and his management team bore some responsibility for the airline's fiscal troubles and indicated he may resign once a viable restructuring plan is in place. "My biggest and last mission is to pass on the company . . . to the next generation," he said, according to "Kyodo." "I will make a decision on my future in an appropriate manner and it will not take long."
The "Dallas Morning News" published a transcript of comments made by (AAL) Chairman & (CEO), Gerard Arpey at (AAL)'s fall leadership conference late last month, that made it clear it will fight hard to keep (JAL)/(JAS) in Oneworld (ONW). SkyTeam (STM) Chairman, Leo van Wijk said that his group is keen on recruiting (JAL)/(JAS).
"(JAL)/(JAS) . . . is under quite a bit of financial stress right now and our friends in Atlanta are trying to capitalize on that by suggesting that (JAL)/(JAS) . . . should change alliances [to] SkyTeam (STM)," Arpey told (AAL) executives. "We obviously think that would be a very bad idea for (JAL)/(JAS). That certainly would be very bad for us." He added that "(DAL) is very dominant through [subsidiary] Northwest [NWA] in Japan . . . If (JAL)/(JAS) were to change horses, we would certainly argue that they might not be allowed to even code share, let alone have immunity with the dominant carrier [at Tokyo] Narita."
Arpey said, "We are convinced that we can deliver the most meaningful alliance value to (JAL)/(JAS) by a wide margin . . . not to mention the financial costs (JAL)/(JAS) would incur if it changed alliances at such a critical phase in its restructuring."
(DAL) revealed that it has made a comprehensive offer to Japan Airlines (JAL)/(JAS) to switch from the Oneworld (ONW) alliance to the SkyTeam (STM) alliance that includes financial assistance and guarantees totaling $1 billion, saying it wants (JAL)/(JAS) to be "the face of Asia" for (DAL). Struggling (JAL)/(JAS) is attempting to enter into a government-backed restructuring that would allow it to avoid bankruptcy, but no plan has been agreed to and Japanese Transport Minister, Seiji Maehara said that a court-administered bankruptcy is a possibility. He said his past assurances regarding (JAL)/(JAS) were not meant to rule out bankruptcy but to communicate that the government would make sure that (JAL)/(JAS) would not "collapse or disappear."
(DAL) President, Edward Bastian told reporters in Tokyo that (DAL) and other SkyTeam (STM) alliance partners are willing to provide a $500 million equity injection as well as an additional +$200 million in asset-backed financing. It also would guarantee the $300 million in annual revenue that (JAL)/(JAS) claims it now generates owing to its membership in the (OMW) alliance. (DAL) reiterated that it would cover the Information Technology (IT) costs of making an alliance switch, estimated to be about $15 to $20 million.
Bastian asserted that "The SkyTeam (STM) alliance is by far the strongest partner for (JAL)/(JAS) and the best ally to ensure (JAL)/(JAS)'s growth and stability." The SkyTeam (STM) alliance currently does not have a Japanese affiliate but has an Asia/Pacific presence with Korean Air (KAL) and China Southern Airlines (GUN). Bastian said the Tokyo-based carrier "for (DAL) would represent in many ways the face of Asia." He claimed (JAL)/(JAS)'s annual revenue would be boosted by around +$400 million through access to (STM) passengers. In a USA regulatory filing, (DAL) said it has "discussed a possible marketing alliance and joint venture with (JAL)/(JAS) covering routes between North America and Asia, including a related capital investment in (JAL)/(JAS) by us and one or more other [STM] members." Bastian told reporters that a (JAL)/(JAS) alliance switch could be achieved in less than a year. He added that the (DAL)/(STM) offer is "unconditional" and does not depend on how much financial assistance (JAL)/(JAS) receives from the Japanese government.
American Airlines (AAL) has indicated that it will put up a strong fight to keep (JAL)/(JAS) in the (ONW) alliance, including challenging a move to the (STM) on antitrust grounds owing to (DAL) subsidiary, Northwest Airlines (NWA)'s strong presence in Japan. (AAL) reportedly has teamed with (TPG) Capital to propose investing $300 million in (JAL)/(JAS).
Later, (JAL)/(JAS) said it reached agreement with the Development Bank of Japan for an emergency bridge loan "necessary for continuance of our flight operations." (JAL)/(JAS) said the Japanese government had approved the loan. (JAL)/(JAS) did not reveal the loan's amount but Japanese media pegged it at around ¥100 billion/$1.12 billion.
(JAL)/(JAS) is expected to enter into a turnaround program overseen by the Enterprise Turnaround Initiative Corporation (ETIC) of Japan, a newly created quasi-government entity designed to help rescue struggling companies, and proposed slashing its pension benefits by more than >40%. The (ETIC) restructuring program may take several weeks to finalize, necessitating short-term relief. (JAL)/(JAS) said in a statement that "an event which would interfere with our flight operations could occur" if didn't receive emergency funds.
The Japanese government reportedly is preparing to provide ¥700 billion/$7.74 billion in credit guarantees to (JAL)/(JAS) as part of an "extra budget" that could be finalized this week for the country's fiscal year ending March 31. Multiple press reports from Tokyo said the government wants to allay any doubts that (JAL)/(JAS) will continue to be able to operate as it goes through a restructuring expected to be overseen by the Enterprise Turnaround Initiative Corp of Japan.
Japanese analysts said the loan guarantee would not be the solution to (JAL)/(JAS)'s problems but would provide it with financial stability to weather its current crisis and complete a long-term restructuring. Gerson Lehrman Group analyst Addison Schonland wrote in a research note that owing to the loan guarantee, "(JAL)/(JAS) breathes deeper and easier, for now." But he said the move "puts the airline firmly in the hands of the state . . . As the state now calls the shots, we are likely to see (JAL)/(JAS) dismembered because assets will be sold to defray the investments." He projected that Nippon Cargo Airlines (NCA) would take over (JAL)/(JAS)'s cargo business and a Low Cost Carrier (LCC) could be "pulled out" of the carrier. "So the loan guarantee seems likely to set off a series of next steps that will impact the entire Japanese airline industry."
Later, Japanese officials said that the government will not guarantee any loans extended to Japan Airlines (JAL)/(JAS). Finance Minister, Hirohisa Fujii said the government had agreed to "consider" backing some ¥100 billion/$1.09 billion in loans from the Development Bank of Japan (DBJ), "but it did not say we would actually do it." He added: "This is a matter that should be worked out by private companies. The (DBJ) is wholly owned by the state but it has the status of a private bank so the government is not allowed to meddle in its business," "Reuters" reported.
Securing additional funds and the support of the Enterprise Turnaround Initiative Corporation of Japan may depend significantly on whether (JAL)/(JAS) can finalize agreements with employees on pension relief. Transport Minister, Seiji Maehara said the government would "support" (JAL)/(JAS) during its restructuring. "The government will make sure (JAL)/(JAS) can gain support, including bridge loans, even if there aren't any state guarantees," he said. A final decision on pension relief is due January 12.
The USA and Japan announced that they reached agreement on an "open skies" accord that will liberalize access, largely removing restrictions on the number of airlines allowed to serve each market as well as the number of flights. The long-elusive pact, agreed to after an intensive fifth round of negotiations this year took place in Washington, is contingent upon approval of antitrust immunity (ATI) for transpacific joint ventures (JV)s between Japanese and USA carriers. (ANA) is seeking to form a (JV) with Star Alliance (SAL) partners United Airlines (UAL) and Continental Airlines (CAL), while Japan Airlines (JAL) intends to form a (JV) with either American Airlines (AAL) or Delta Air Lines (DAL), both of which are negotiating with (JAL) about taking a stake. The pact would replace a bilateral air services agreement that dates back to 1952, though it was expanded in 1998.
No time frame was given for when the new agreement will go into effect, but the sides are eyeing October 2010, when Tokyo Haneda (HND)'s fourth runway will open. A key to the USA side agreeing to an accord was gaining access to (HND), Tokyo's close-in airport that has been closed to USA airlines for more than >30 years. Under terms of the pact, USA carriers will secure four daily round trip slots at (HND) from October.
The USA Department of Transportation said the agreement "would provide opportunities for growth of USA carrier operations at Tokyo's Narita airport and ensure fair competition regarding the new opportunities at [HND]."
Japanese Transport Minister, Seiji Maehara said that reaching the accord "is extremely meaningful" because "the Japan - USA route is the biggest aviation market for Japan." (JAL) said it "intends to apply for (ATI) with a strategic USA partner as soon as possible, so as to seize this opportunity to strengthen our network." It previously has said it hopes to choose between (AAL) and (DAL) by the end of this month.
(AAL) Senior VP Government Affairs, Will Ris said the agreement "will effectively reset the playing field and enable new working relationships, particularly pro-competitive joint ventures granted antitrust immunity (ATI) by the USA and Japanese governments." (DAL) said it "opens the door to antitrust immunity, which would enable Delta (DAL) and (JAL) to engage in deeper and more effective cooperation." (UAL) Chairman, President & (CEO), Glenn Tilton said (UAL) looks "forward to forming a joint venture (JV) across the Pacific with our longtime partner [ANA] and Continental (CAL)."
747-346 (23068, N818SA), returned and sold by JALUX to Southern Air (SOF).
January 2010: Japan Airlines (JAL) is code sharing on Vietnam Airlines (VIE)'s 5x-weekly, Hanoi - Osaka Kansai A321 service.
Japan Airlines (JAL)/(JAS) President, Haruka Nishimatsu suggested that the carrier may resist efforts by the Enterprise Turnaround Initiative Corporation (ETIC) of Japan to push it into a court-monitored bankruptcy restructuring process rather than a more straightforward government bailout, expressing concern that the "image of bankruptcy" could sour the public on the company and lead to adverse consequences.
Speaking to "Asahi Shimbun," Nishimatsu noted that the (ETIC), which is being directed by the Japanese government to oversee (JAL)/(JAS)'s restructuring, appears to favor a court-monitored bankruptcy proceeding that would allow it to reach agreements with creditors. But he warned bankruptcy would carry negative connotations and "lead to a drop in customers . . . I don't see why [ETIC] prefers a court-managed process." He added, "I myself believe rehabilitation is possible without [bankruptcy] proceedings. I hope [the (ETIC)] will understand." He pointed out that (JAL)/(JAS) is making progress in securing cost-cutting concessions outside of court. To that end, the airline announced that the required two-thirds of its 16,000 employees have voted to agree to allow their pension benefits to be cut by -50%.
The Centre for Asia Pacific Aviation (CAPA) said the Japanese government is backtracking from hints it will underwrite (JAL)/(JAS)'s rescue owing to "strong opposition [among the Japanese public] to using taxpayers' money for a bailout." (CAPA) said Deputy Prime Minister, Naoto Kan has become a strong anti-bailout, pro-bankruptcy voice, arguing that "the electorate would not look favorably on a costly intervention" while much of the public is "suffering from the downturn."
Any restructuring likely will include a stake-holding agreement with either current Oneworld (ONW) partner, American Airlines (AAL) or Delta Air Lines (DAL), which is trying to lure (JAL)/(JAS) to SkyTeam (STM). While (JAL)/(JAS) insists it has not made a decision, Nishimatsu raised eyebrows when he told the newspaper that switching alliances "will require enormous work in system changes and other fields, but the question is whether we will put emphasis on Asia. In the future, Asia will have an "open skies" deal. In that respect, SkyTeam (STM) has many members in Asia." The USA and Japan reached agreement on an "open skies" accord last month.
(AAL) stated that reports that (JAL) has chosen (DAL) are "inaccurate and misleading," adding that it continues to negotiate with the Japanese carrier.
Meanwhile, the Development Bank of Japan (DBJ) agreed to double its emergency bridge loan to (JAL)/(JAS) to ¥200 billion/$2.15 billion, to help keep it airborne until it establishes a definitive restructuring plan.
Later, (AAL) announced that its offer in conjunction with Texas Pacific Group (TPG) Capital to invest $1.1 billion in troubled Japan Airlines (JAL)/(JAS) has been raised to $1.4 billion, according to "The Wall Street Journal." (AAL) reportedly met with (JAL)/(JAS) officials and informed them of the improved offer. (AAL) and Delta Air Lines (DAL) are jockeying to participate in (JAL)/(JAS)'s restructuring, which could take the form of a court-monitored bankruptcy proceeding. (DAL) has offered an investment package valued at around $1 billion, but President, Ed Bastian said that the offer may be raised. "We are willing and able to raise additional capital through third-party resources," he said. But he cautioned that "the focus should be on who provides the most [beneficial] long-term commercial partnership, not who provides the most short-term cash."
Meanwhile, Nikkei reported that (JAL)/(JAS)'s net loss for its full fiscal year ending March 31 is expected to exceed >-¥1.2 trillion/-$13 billion.
Signs continue to point toward (JAL)/(JAS) entering into a court-monitored bankruptcy proceeding, with reports from Tokyo indicating that both the Enterprise Turnaround Initiative Corporation (ETIC) of Japan, which will oversee the restructuring, and the Development Bank of Japan, (JAL)/(JAS)'s largest creditor, favor bankruptcy over a government bailout. (JAL)/(JAS) President, Haruka Nishimatsu has expressed reservations about bankruptcy, warning that it would carry negative connotations that could drive away passengers.
But government officials appear increasingly leery of a direct bailout, worrying that providing taxpayer funds to the troubled airline would be frowned on in a country hit hard by the recession. "Kyodo News" reported that (ETIC) is developing a restructuring plan that would include (JAL)/(JAS)'s filing for bankruptcy under Japan's Corporate Rehabilitation Law but also would provide special safeguards that would keep the airline flying and minimize the process's uncertainty, similar in some respects to a USA Chapter 11 filing.
(ETIC) reportedly would ensure that (JAL)'s shares will continue to be listed on the Tokyo Stock Exchange after the filing in order to limit disruptions to (JAL)/(JAS)'s normal business functions. It also would ensure that enough capital is injected into (JAL)/(JAS) to keep it operating through the bankruptcy process, including guaranteeing sufficient funding to allow it to pay for fuel and cover maintenance and other operational costs, and would push the carrier's major creditors to forgive hundreds of billions of yen in debt.
Nikkei reported that the (DBJ) backs this option over a bailout because even though it would take a financial hit, the court-monitored process would allow for greater transparency and make it easier for (JAL)/(JAS) to cut labor costs, giving it a better chance for longer-term viability.
It is not clear how a bankruptcy filing would affect (JAL)/(JAS)'s negotiations with (DAL) and (AAL) about one of those carriers taking a stake. (AAL) Senior VP Government Affairs, Will Ris told "Reuters" that the carrier is "flexible" and along with partner (TPG) Capital would be willing to invest in (JAL)/(JAS) even if it filed for bankruptcy. "We are okay either way [bailout or bankruptcy] and what we want to do is position ourselves so that we can act very quickly depending on which scenario takes place and make our capital investment available at that time," he said. He added that (AAL) is "continually in conversation with (JAL)/(JAS)."
The last word is that (JAL)/(JAS) is expected to announce that it will file for bankruptcy later this month as part of a turnaround plan that will include eliminating -15,600 jobs, according to news reports from Tokyo. "Kyodo News" stated that the Enterprise Turnaround Initiative Corporation (ETIC) of Japan, which will oversee (JAL)/(JAS)'s restructuring, is detailing a recovery path that will enable it to keep operating during bankruptcy but force it to make significant cuts in jobs, pension benefits and wages and to sell assets such as (JAL) Hotels. The job reductions, amounting to about -30% of its workforce, reportedly would be achieved by March 2013.
According to reports, (ETIC) will inject +¥300 billion/+$3.2 billion or more into the company to ensure (JAL)/(JAS) has enough cash to keep operating through the court-monitored process. The Japanese government's reluctance to provide the airline with a direct bailout reportedly is driving the decision to seek a court-managed restructuring. Meanwhile, Nikkei reported that (ETIC) will reject investment offers from both American Airlines (AAL) and Delta Air Lines (DAL), instead directing (JAL)/(JAS) to enter into an arrangement with one of the carriers that will involve close cooperation but no foreign ownership stake. However, (AAL) Chairman & CEO, Gerard Arpey told the "Associated Press" that he has not been informed by (JAL)/(JAS) or the Japanese government that (AAL)'s bid will be rejected.
(AAL) confirmed that its offer to invest in (JAL)/(JAS) in conjunction with (TPG) Capital has been raised by +$300 million to $1.4 billion and said it and Oneworld (ONW) partner British Airways (BAB) will enhance cooperation with (JAL)/(JAS) to enable it to generate an additional +$500 million in revenue over the next three years. (AAL) has been jockeying with Delta Air Lines (DAL) to take a stake in (JAL)/(JAS), which appears to be on the verge of entering a court-monitored bankruptcy proceeding. However, reports from Tokyo indicate that (ETIC) favors rejecting foreign investment in the carrier and instead will push it toward noncapital commercial cooperation with either (AAL) or (DAL), which is attempting to lure (JAL)/(JAS) to SkyTeam (STM).
(AAL) Executive VP Finance & Planning plus (CFO), Tom Horton, speaking at a Tokyo news conference, said (ONW) has an "extraordinary commitment" to (JAL)/(JAS), which he claimed already generates around $500 million annually from its association with the (ONW) alliance. Enhanced cooperation with (ONW) partners can generate an additional $500 million over three years, he asserted. He said the incremental revenue would come primarily from closer ties with (AAL) and (BAB). An antitrust-immunized transpacific joint venture between (JAL)/(JAS) and (AAL) will "conservatively" generate an extra +$300 million over three years, he stated, adding that (AAL) "will guarantee this $100 million in new annual revenue for the first three years of the venture . . . to remove uncertainty."
In addition, (BAB) "has proposed a series of enhancements to its business relationships with (JAL)/(JAS) that will result in approximately $200 million in revenue over three years," Horton said. (BAB) Director Investments, Roger Maynard said (BAB) will "facilitate any decision by (JAL)/(JAS) to start services from [Tokyo] Haneda to London Heathrow (LHR)" by providing (JAL)/(JAS) with (LHR) "infrastructure . . . and slots" necessary for such services. He added that (BAB) would "double the number of European cities that (JAL) can reach through code sharing" on (BAB) flights from April.
Horton said (ONW) alliance partners Qantas (QAN) and Cathay Pacific Airways (CAT) are willing to assist (JAL)/(JAS) with its "complicated restructuring" by providing "expertise," including (QAN) helping (JAL) launch a Low Cost Carrier (LCC) affiliate based on its JetStar Airways (IMU) model. (CAT) General Manager Japan, Simon Large noted that (ONW) is willing to guarantee that "(JAL)/(JAS) is the exclusive north Asia partner in this alliance."
(JAL)/(JAS) executives and the Japanese government have been circumspect about discussing details of the airline's restructuring publicly, but Japanese Transport Minister, Seiji Maehara did say that (JAL)/(JAS)'s largest creditors are on board with the airline's recovery plan, though he did not confirm details of the plan.
Kazuo Inamori, one of Japan's most prominent business figures, has accepted Prime Minister, Yukio Hatoyama's offer to become (CEO) of (JAL)/(JAS) and guide the troubled carrier through its pending bankruptcy reorganization. (JAL)/(JAS)'s current head, President, Haruka Nishimatsu is expected to step down as soon as next week, when the airline reportedly plans to file for bankruptcy under Japan's Corporate Rehabilitation Law. Nishimatsu has expressed misgivings about a court-monitored bankruptcy proceeding, warning that negative connotations associated with bankruptcy could drive away passengers.
But he appears to have lost the argument, with the state-backed (ETIC) of Japan, which will oversee (JAL)/(JAS)'s restructuring, mapping out a recovery strategy that will include bankruptcy. Nishimatsu has said that he and his management team bore some responsibility for (JAL)/(JAS)'s fiscal troubles and indicated he would resign once a viable restructuring plan is in place.
Inamori, 77, founded Kyocera Corporation in 1959 and built it into a premier high-tech company manufacturing a range of products including cell phones and solar power equipment. In 1984, he founded (KDDI), now Japan's second-largest telecommunications provider.
Though retired, the ordained Buddhist monk is a popular writer and lecturer in Japan and widely regarded as one the nation's leading business minds. "I don't know anything about the transportation industry, but I would like to make my best contribution," he told reporters. He acknowledged he would not work full time and would select a (COO) to handle day-to-day affairs. "I am old and a full time job is hard for me, so I would like to work three or four days a week and I will work for free," he said. "I have great expectations for a man whose managerial skill built Kyocera and (KDDI) in a single lifetime," Hatoyama said.
On his official website, Inamori wrote that he has "struggled with many dead-end situations which caused me endless agony" throughout his career, but has achieved "amazing results" by adhering to management principles he dubs the "Kyocera Philosophy." Among the key tenets are "clearly stat[ing] the purpose and mission of your business" and working to "measure your inflow and control your outflow. Don't chase profit, but let it follow your effort." He added that "business management requires a persistent, 'rock-piercing' will" and "a more combative mentality than any martial art."
Later, (ETIC) officially confirmed that it will guide (JAL)/(JAS)'s restructuring plan, pledging in a statement to "ensure all of its business operations on and off the ground [will] be performed smoothly without any interruption as usual with sufficient amount of capital" during the "revitalization" process. (ETIC) did not mention the carrier's expected bankruptcy filing, which is widely believed to be a central element of the turnaround plan being developed by the quasi-government entity. To guarantee that the airline can pay for fuel, maintenance and other operational costs, (ETIC) is expected to inject ¥300 billion/$3.2 billion or more into the company and secure forgiveness of hundreds of billions of yen in debt (JAL)/(JAS) owes to its largest creditors.
Japanese Transport Minister, Seiji Maehara told "Bloomberg News" that whatever process (JAL)/(JAS) goes through, "a certain amount of public funds will be needed . . . I can't clearly say how much it will cost." He added that Kazuo Inamori, the legendary Japanese business figure who has agreed to become (CEO), will be with (JAL)/(JAS) for up to three years.
"If we steadily implement the rehabilitation plan that is being compiled by (ETIC), I believe revival is possible," Inamori told reporters.
Shortly after, Japan Airlines (JAL)/(JAS) filed for bankruptcy protection in Tokyo under Japan's Corporate Rehabilitation Law, initiating a restructuring process that it said will include major cost cuts and structural changes with the aim of returning to profitability by March 2012. Both (JAL)/(JAS) and the Japanese government insisted (JAL)/(JAS) will continue operating normally as it goes through the court-monitored proceeding. The government-backed (ETIC), which will oversee the restructuring, will inject ¥300 billion/$3.3 billion in capital into (JAL)/(JAS) and the Development Bank of Japan (DBJ) is extending the airline a ¥600 billion line of credit, funds that "will be sufficient to continue our business," the company said.
(JAL)/(JAS) stated in its court filing that its liabilities total a staggering ¥2.32 trillion. Transport Minister, Seiji Maehara conceded during a press conference that "if (JAL)/(JAS) was not [Japan's] biggest airline company, it would have been liquidated." Nevertheless, he and Prime Minister, Yukio Hatoyama emphasized (JAL)/(JAS)'s importance to the nation's economy and promised that it would not be allowed to collapse. "The government will support (JAL)/(JAS)'s efforts," Hatoyama said, encouraging passengers to continue flying aboard an airline that operates 1,100 flights daily and has a 66% international market share and a 46% domestic share in Japan. "Today is the starting point for (JAL)/(JAS)'s revival," Maehara said. "Needed support will be provided until it is reconstructed."
(JAL)/(JAS) President, Hakura Nishimatsu resigned effective immediately. As recently announced, Kazuo Inamori will take the helm as the company's new (CEO). "(JAL)/(JAS) symbolizes the slumping Japanese economy, so I accepted the job with the hope that its turnaround, if realized, would have a positive impact on the entire economy," said Inamori, who plans to rely on a new (COO) to handle day-to-day affairs. (JAL)/(JAS) said a new management structure will be "determined in early February." It added that Senior Managing Executive Officer, Masato Uehara will serve as "temporary" (COO) in the meantime.
(JAL)/(JAS) has laid out several basic premises upon which its turnaround plan is based, including a "proactive shift from low-efficiency large airplanes to high-efficiency smaller airplanes as well as regional jet airplanes." It said it would consolidate "under-performing" routes and is expected to eliminate 31. It will establish "a low-cost flight service model" for local flights and will cut about -15,600 employees, some -30% of its workforce.
(JAL)/(JAS) received approval from more than two-thirds of its current and retired workforce to reduce pension benefits significantly. Nishimatsu told a group of (JAL)/(JAS) retirees in November that the carrier needed to cut retiree benefits by -30%, while current employees' pension benefits would be slashed by -50% for a total collective reduction exceeding -40%. Another element of the turnaround plan is expected to be selling off non-core assets, such as (JAL) Hotels.
(ETIC), which said (JAL)/(JAS)'s debt exceeds its assets by ¥860 billion, is asking creditors to forgive more than ¥700 billion in liabilities. Its largest creditors reportedly are the (DBJ), Mizuho Corporate Bank, Bank of Tokyo-Mitsubishi, and Sumitomo Mitsui Banking Corporation. (JAL)/(JAS)'s net loss for its full fiscal year ending March 31 is expected to exceed -¥1.2 trillion. (JAL)/(JAS) will be delisted and stop trading on the Tokyo Stock Exchange on February 20.
Neither (ETIC) nor (JAL)/(JAS) made any comments regarding the ongoing efforts by American Airlines (AAL) and Delta Air Lines (DAL) to negotiate a capital investment in the struggling company. (JAL)/(JAS) said only that part of its route restructuring would be "leveraging our multiple alliances to expand our [international] networks." Currently a member of the Oneworld (ONW) alliance, it is considering switching to the SkyTeam (STM) alliance if it enters into a partnership with (DAL). The (ONW) alliance said that (JAL)/(JAS)'s "position in the (ONW) alliance is unaffected" and that (ETIC) has assured it that "it is business as usual for the airline commercially and operationally."
ST Aerospace, which provides heavy maintenance for (JAL)'s MD-11s, 747-400s, 767s and 777s, issued a statement saying that it understands "(JAL) may likely undergo some form of court-led restructuring similar to a Chapter 11 filing in the USA." It added that the government likely "will issue a statement to countries where (JAL) has operations to guarantee public support for its national carrier." President, Tay Kok Khiang said the ST Aerospace "will continue to work with the airline as we are confident that (JAL) will overcome its current difficulties."
Japan Airlines Group (JAL)/(JAS) named Japan Air Commuter President, Masaru Onishi President of both the Japan Airlines Corporation holding company and the Japan Airlines International (JAL) operating unit as well as (COO) for (JALS). Onishi, who joined the company in 1978, will join recently appointed (CEO), Kazuo Inamori in leading it through bankruptcy. (JAL)/(JAS) also named Hisao Taguchi, Executive VP of both the group and (JALI). He has run (JAL)/(JAS)'s Kyushu operation since last April.
February 2010: Months of high-stakes jockeying between the Oneworld (ONW) alliance's American Airlines (AAL) and the SkyTeam (STM) alliance's Delta Air Lines (DAL) over partnering with troubled Japan Airlines (JAL)/(JAS) came to an end when (JAL)/(JAS) announced it will stay in the (ONW) alliance and jointly apply for antitrust immunity (ATI) on transpacific routes with (AAL).
(JAL)/(JAS) President & (COO), Masaru Onishi said (JAL)/(JAS), which last month entered into a court-monitored bankruptcy restructuring, had "analyzed this issue in great detail" and reached the conclusion that "the advantages of this development with (AAL) can strongly support (JAL)/(JAS) at a time when we are striving towards the revival of our business."
(JAL)/(JAS) Senior VP Corporate Planning, Daiji Nagai told reporters that the near-term stability gained from sticking with the (ONW) alliance outweighed the potential long-term benefits of jumping to the (STM) alliance, a move that would have given that alliance a dominant hold on the USA - Japan market. "We had a fierce debate over whether we should choose (DALO) and the (STM) alliance for future profitability or stay in the (ONW) alliance and avoid incurring a loss from making a switch this year," he explained. "If we don't survive the first two years, there will be no future for (JAL) after the third year of restructuring. We decided that we can minimize risk by staying with American (AAL)."
(JAL)/(JAS) said that upon receiving approval from the the USA Department of Transportation and the Japanese Ministry of Land Infrastructure, Transport and Tourism, it intends to enter into "a joint business venture (JV) [with (AA)] which will enhance [the two carriers'] scope of cooperation on the routes between the USA and Japan through adjustments to their respective networks, flight schedules and other business activities."
(ATI) approvals for (AAL)/(JAL)/(JAS) and for a similar (JV) between United Airlines (UAL)/Continental Airlines (CAL) and (ANA) are prerequisites for enactment of the Japan/USA "open skies" accord tentatively agreed to in December. It appears that (AAL) will not take a stake in (JAL)/(JAS) through a capital investment as previously had been considered. "We respect that this was an important decision for (JAL)/(JAS) . . . and we believe they have made the right choice for (JAL)/(JAS)'s many stakeholders, for Japan's national interests and for consumers travelling between Japan and the United States," said (AAL) Chairman & (CEO), Gerard Arpey, who had vowed to "move aggressively to block" a (JAL)/(JAS) attempt to partner with (DAL). He added that (AAL) "remains confident" (ATI) will be cleared.
"The members of the (STM) alliance respect the decision made by (AL)/(JAS)," the (STM) alliance said in a statement. "We believe that cooperation with (JAL)/(JAS) would have brought good opportunities to all parties involved."
Later, the USA Department of Transportation (DOT) issued a show cause order tentatively approving the application for antitrust immunity (ATI) from Oneworld (ONW) alliance partners (AAL), British Airways (BAB), Iberia (IBE), Finnair (FIN) and Royal Jordanian (RJA) and also tentatively approved the three-way transatlantic joint venture (JV) among (AAL), (BAB) and (IBE) under which the carriers jointly will plan and manage capacity and share revenues.
But the (DOT) said the (ONW) alliance "could harm competition" on certain routes between the USA and London Heathrow (LHR) and is requiring that the carriers surrender four slot pairs at (LHR) for up to 10 years to enable competitors to launch new USA - (LHR) service. (AAL) and (BAB) had argued that they should not have to give up slots at (LHR). They withdrew an earlier application in 2002 for (ATI) rather than surrender slots at Heathrow. The European Commission (EC) also has identified competitive concerns but has yet to render a decision.
The (DOT)'s ruling came less than a day after Japan Airlines (JAL)/(JAS) and (AAL) applied for (ATI) to operate as one airline for commercial purposes on transpacific routes.
In its finding, the (DOT) said that "the proposed [transatlantic] alliance would enhance competition around the globe by creating a viable third immunized alliance that is comparable and more competitive with the product and service offerings of the Star (SAL) alliance and SkyTeam (STM) alliance, which have already received grants of antitrust immunity (ATI) and are proceeding with their own alliance plans and integrated joint ventures (JV)s."
However, the department noted that granting (ATI) to (AAL) and (BAB) will have the effect of boosting the combined carriers' market share at (LHR) to 47.4% and is proposing to require divestiture of four slot pairs, two of which will be earmarked for new service in the Boston - (LHR) market, while two may be used in any USA - (LHR) city-pair. It added, "This slot remedy would offset the potential loss in competition that results from combining the international operations" of (AAL) and (BAB).
The slot surrenders need not be permanent - - the (DOT) is "proposing that the applicants make the slots available for a period of 10 years from the date of issuance of a final order in this case." It also will require changes to the agreement "to ensure capacity growth, and require the carriers to submit traffic data and implement the proposed alliance within 18 months of a final decision."
In a statement, (AAL) said it "will review the (DOT)'s tentative order and will respond according to the time frame established for comments."
The tentative finding came less than 24 hours after (AAL) and Japan Airlines (JAL)/(JAS) applied for (ATI) to operate as if they are one airline for commercial purposes on flights between North America and Asia. The filing, which had been expected, followed (JAL)/(JAS)'s decision last week to maintain its membership in Oneworld (ONW) rather than jumping to SkyTeam (STM), which had been wooing the bankrupt carrier for several months. (JAL)/(JAS) and (AAL) said they also will notify Japan's Ministry of Land, Infrastructure, Transport and Tourism of the application. Should (AAL) and (JAL)/(JAS) receive (ATI), they will "cooperate commercially on flights while continuing to operate as separate legal entities . . . coordinat[ing] fares, services and schedules in order to attract new customers and boost revenues." They noted that the (JBA) will be "metal neutral," meaning both "will benefit from a customer's ticket purchase regardless of which one carries the passenger, as the airlines will share revenue on all (JBA) flights."
Koito Industries of Yokohama was ordered by the Japanese Civil Aviation Bureau (JCAB) to re-test some 150,000 airp-lane seats installed on around 1,000 airplanes operated by 32 airlines worldwide and make fixes if necessary. The (JCAB) accused the company of falsifying data from tests on the seats' fire and shock resistance and Koito, which is 20% owned by troubled automaker Toyota Motor Corporation, later admitted to the wrongdoing. Koito President, Takashi Kakegawa told reporters at a press conference that "the whole section in charge [of the testing] was systematically involved" in falsifying results. The (JCAB) said it has evidence the false test data dates back to the 1990s. Koito lists Japan Airlines (JAL)/(JAS), (ANA), Singapore Airlines (SIA), Continental Airlines (CAL) and Virgin Atlantic Airways (VAA) as "major customers" on its website.
Airbus (EDS) acknowledged that (EASA) barred it in September from delivering airplanes with Koito seats, according to "Bloomberg News." The European safety agency determined that the seat-maker failed to share enough pertinent data on its seats to warrant continued approval and that there was evidence of "irregularities" at Koito. (SIA) reportedly was forced to delay delivery of its 11th A380 owing to the issues surrounding Koito seats, while (ANA) said the launch of its Inspiration of Japan long-haul product aboard a 777-300ER would be postponed until April because of a delay in the development of its new premium economy seats by Koito. Thai Airways (TII) announced that it has canceled a contract with Koito, blaming repeated seat-installation problems for the delayed delivery of five A330-300s. It said the seat-maker claimed it could resolve its issues and install the seats by August, but (TII) was unwilling to continue waiting for airplanes it said have been sitting idle in Hamburg since September.
March 2010: Japan Airlines (JAL)/(JAS) posted a net loss of -¥177.9 billion/-$1.99 billion for the first three quarters of its fiscal year ended December 31, 2009, considerably widened from a -¥1.9 billion loss for the prior-year period. The result represented a record nine-month deficit for the bankrupt carrier, which said it is establishing an independent investigative committee to "examine past business practices." It said in a statement that it "recognizes and is deeply apologetic for the current situation that has caused great inconvenience and concern to our shareholders, financial creditors, customers, suppliers and other related parties."
(JAL)/JAS) filed for bankruptcy protection last month under Japan's Corporate Rehabilitation Law, admitting in court filings that its liabilities total ¥2.32 trillion. This month, it applied for antitrust immunity (ATI) to operate as one airline with Oneworld (ONW) alliance partner American Airlines (AAL) on transpacific routes.
Operating revenue for the nine-month period slumped -26.6% to ¥1.14 trillion, while expenses lowered -19.3% to ¥1.27 trillion, producing an operating loss of -¥120.8 billion, significantly widened from an operating loss of -¥8.8 billion in the prior-year period. Traffic decreased -9.5% to 58.15 billion (RPK)s on -9.5% capacity dip to 88.91 billion (ASK)s, producing a load factor of 65.4% LF, flat year-over-year. Cargo traffic declined -13.2% to 7.77 billion (RTK)s on a -14.8% cut in capacity to 13.05 billion (ATK)s, producing a load factor of 59.5% LF, up +1 point.
(JAL)/(JAS) announced that it will establish a "Compliance Investigations Committee," which it described as "an independent investigative organization formed by third-party members" including a current and former member of Japan's Supreme Court. "Committed to executing a fair and transparent restructuring under the Corporate Reorganization proceedings, [JAL/(JAS] will commission the committee to launch an investigation into past business management . . . to determine if there were any issues about compliancy and to identify problems in that aspect," (JAL)/(JAS) said.
Fiscal third-quarter net loss was -¥46.7 billion, widened -21.3% from a -¥38.5 billion deficit in the year-ago period, on a -21.6% slide in revenue to ¥380.8 billion.
Japan Airlines (JAL)/(JAS) announced that it has ended negotiations related to a possible merger of its cargo operations with Nippon Cargo Airlines (NCA). (JAL)/(JAS) and (NCA) parent, Nippon Yusen announced last August that talks about a merger were underway. (JAL)/(JAS), which is in the midst of a bankruptcy restructuring, said that both sides reached a "common understanding to halt discussions about the merger" but agreed to continue existing ties such as code sharing flights and coordinating ground handling activities.
(JAL)/(JAS) (CEO), Kazuo Inamori, the iconic Japanese business figure who took the helm of the bankrupt carrier in January, told reporters that he has been surprised by the lack of business acumen among company executives but vowed to return (JAL)/(JAS) to operating profitability as soon as this fall. He candidly expressed his assessment of (JAL)/(JAS)'s corporate office in a Tokyo news conference, according to multiple reports, saying that an "extremely low" number of the airline's executives have business sense. He said he has told them, "You guys wouldn't be able to run a greengrocery with your ideas."
The carrier entered a court-monitored bankruptcy proceeding in January and last month reported a record nine-month net loss of -¥177.9 billion/-$1.99 billion) for the first three quarters of its fiscal year ended December 31. Inamori, 78, who was lured out of retirement by Prime Minister, Yukio Hatoyama to revive the troubled airline, said that (JAL)/(JAS) will "have to proceed with drastic restructuring including cost cutbacks" to survive. He said operating profitably on a monthly basis by this fall is possible. He rejected suggestions that the carrier will shrink its international network significantly, saying, "'I'm fully confident that we can make the international operation profitable. If we can't, there won't be any reason for (JAL)/(JAS)'s existence."
Japan Airlines (JAL)/(JAS)'s restructuring includes the retirement of a significant number of pilots (FC) this year, which could change the landscape of the Japanese air transport industry.
Geoffrey Tudor, a leading analyst with the Centre for Asia Pacific Aviation who also is the principal analyst with Tokyo-based Japan Aviation Management Research, said Japanese cockpit crew (FC) always have been in short supply and the need to hire foreign pilots (FC) has been a major barrier to expansion or entry.
He suggested that a "new supply of qualified pilots (FC) could be a big gain for (ANA)'s expansion plans, new airlines that are also looking to expand, would-be new entrants and low-cost carrier start-ups in the future."
He said that a "ready supply of qualified flight crew (FC) holding licenses issued by the Japan Civil Aviation Bureau is a chance that some airlines and would-be airlines in Japan will not want to miss." More than >1,500 captains now flying for (JAL)/(JAS) and 800 first officers (FC) aged 35 or older are eligible to apply for the (JAL)/(JAS) voluntary early retirement program by May 30.
Tudor noted that it is "unlikely that much will be said in public on the topic, but some (JAL)/(JAS) competitors are thought to be making plans to approach (JAL)/(JAS) flight crew (FC) members who may take the early retirement program."
Japan Airlines (JAL)/(JAS) announced that it will ground its freighter fleet after more than half a century of operations and continue its cargo business "solely" through utilizing belly space on its passenger flights.
(JAL)/(JAS), which is in the midst of a court-monitored bankruptcy restructuring, operated its first freighter flight on May 2, 1959, aboard a DC-4 from Tokyo Haneda to San Francisco. But it said it will suspend freighter service at the end of October owing to "market conditions for international cargo . . . expected to remain severe." It said its "new cargo business structure . . . aims to secure a stable profit . . . that can boost the recovery of (JAL)/(JAS)'s financial standing."
It insisted it would be "maintaining access to almost all destinations currently served by its freighter flights with passenger flights," adding, "The airline will continue its cargo business by productively using the belly space of 508 weekly passenger flights plying 56 international routes and on 134 domestic routes with 904 daily one-way flights."
According to its website, (JAL)/(JAS) operated 11 freighters on 28 international routes at the end of its last fiscal year on March 31, 2009, comprising seven 747-400Fs, one 747-200F and three 767-300Fs. Of those airplanes, six were owned and five leased.
April 2010: Japan Airlines (JAL)/(JAS) announced that it will cut -45 routes by the end of September as part of a radical shakeup intended to return it to profitability and sustainability. (JAL)/(JAS) filed for bankruptcy under Japan's Corporate Rehabilitation Law in January and (CEO), Kazuo Inamori, who took the helm when it began the court-monitored reorganization process, has been indicating in recent weeks that cuts will be harsher than originally planned. The airline confirmed speculation by Japanese media that its reductions would be far more than the -30 previously expected when it unveiled a new route, flight frequency and fleet plan that will see it abandon many long-range routes and focus more intently on short/medium-haul services.
International capacity is being cut by -40% and domestic by -30%, translating into 86 weekly international and 58 daily domestic round trips. Among the destinations it will drop altogether as it axes -15 international routes are Amsterdam, Milan, Rome, Sao Paolo, Brisbane, Denpasar, and Kona. It also will terminate -30 domestic routes. "(JAL)/(JAS) has restructured its overall network with the clear objective of returning to profitability as swiftly as possible," it said in a statement.
The cuts are even more severe when considering that closures announced prior to its bankruptcy filing mean that total international routes slashed by this fall will amount to -28. Cumulative domestic routes cut will total -50. (JAL)/(JAS) also will also close 18 offices. Along with the route terminations, its 747-400 and A300-600 fleets will be grounded. Additionally, many routes will see a downsizing of equipment.
(JAL)/(JAS) said the plan has been "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 three years." It added, "The extent to which the route and flight frequency plan has been streamlined is vital to achieving a swift revival of the (JAL)/(JAS) Group. (JAL)/(JAS) seeks the understanding of its customers who will be inconvenienced by the changes announced."
Part of the restructuring will include greatly expanding the use of Tokyo Haneda (HND) for international flights with a focus on pivotal routes that can yield higher business demand. New (HND) routes will include daily flights to San Francisco, Honolulu, Bangkok, and Paris Charles de Gaulle. (JAL)/(JAS) also will expand (HND) flights to destinations in Asia.
May 2010: Japan Airlines (JAL) and China Eastern Airlines (CEA) expanded their code share agreement to include daily (CEA)-operated flights from Shanghai Pudong to Xi'an, Wuhan, and Shenzhen, as of June 3. They also will increase the frequency of existing Shanghai code share routes to Chengdu and Chongqing, from 4x-daily to 9x-daily.
Japan's Transport Ministry said Tokyo Haneda (HND) officially will begin handling international scheduled flights on October 31 following the opening of its fourth runway and new international passenger terminal on October 21. Japan Airlines (JAL) said that from October 31 it plans services from (HND) to San Francisco, Honolulu, Paris Charles de Gaulle, Bangkok, and Taipei. It also will convert current charter flights from (HND) to Seoul, Beijing, Shanghai, and Hong Kong to scheduled passenger flights. The USA Department of Transportation tentatively has proposed awarding two of four routes at (HND) available under the new USA - Japan "open skies" agreement to Delta Air Lines (DAL) for services from Los Angeles and Detroit. It also proposed granting one route to American Airlines (AAL) for service from New York (JFK) to the downtown airport and one to Hawaiian Airlines (HWI) from Honolulu.
June 2010: Japan Airlines (JAL)/(JAS) will cut -19,300 jobs, more than originally planned but not quite as many as reported when (JAL)/(JAS) decided earlier this year to retrench more severely to turn around its business. Most of the positions will be abolished by the end of the current financial year, March 31, 2011.
(JAL)/(JAS), once Asia’s largest, will aim for a small profit this financial year. The new staffing plan will be part of a turnaround proposal to be submitted in August to the court that is handling the bankruptcy, says the "Yomiuri Daily." The government is supervising the restructuring through its Enterprise Turnaround Initiative Corporation. The original plan envisaged -15,700 job cuts, but creditors regarded that as inadequate. A cut of “about -20,000” was reported in March, but the actual figure will be -19,300. (JAL)/(JAS) will eventually be left with 32,600 employees, about -40% fewer than it and its subsidiaries had in January, when it filed for protection from creditors.
With 15 international and 30 domestic routes to be eliminated, revenue will fall -9% to ¥1.3 trillion/$14.1 billion this fiscal year, while operating costs will fall -22% to ¥1.28 trillion. The biggest contribution to the cost cuts will come from salaries, the "Nikkei" newspaper says, analyzing the turnaround plan, details of which were reported in major media.
July 2010: Japan Airlines (JAL) and Finnair (FIN) expanded their code share agreement to allow (JAL) to place its code on (FIN) flights from Helsinki (HEL) to Berlin, Dusseldorf, Hamburg, Munich, Brussels, Warsaw, and Gothenburg, effective August 1. The carriers already code share from (HEL) to Tokyo Narita, Osaka Kansai, and Nagoya.
Japan Airlines (JAL)/(JAS) detailed its schedule for international operations from Tokyo Haneda (HND) beginning October 31, explaining that it will use its extensive network of domestic flights to/from the airport to feed passengers to international services and to offer arriving international passengers transport from (HND) to destinations throughout Japan.
Japan's Transport Ministry recently announced that (HND) would officially begin handling international scheduled flights on October 31 following the opening of its fourth runway and new international passenger terminal on October 21. (JAL) said it will serve San Francisco (SFO), Honolulu, Paris Charles de Gaulle (CDG), Bangkok, Singapore (SIN), and Taipei from the airport. It also will convert current charter flights from (HND) to Seoul Gimpo, Beijing, Shanghai, and Hong Kong into scheduled passenger flights.
"Counting the new international routes and an increase in one daily flight to Gimpo this autumn, (JAL) will be operating a total of 10 international routes with 13 daily flights," it stated. President & (COO), Masaru Onishi said, "Haneda Airport is conveniently located in the heart of Tokyo and will be opened round-the-clock, greatly enhancing the convenience of travelers. Furthermore, with (JAS)'s extensive domestic operations at the hub, passengers can make smooth connections from our new international flights to many other destinations in Japan. We intend to fully utilize Haneda's strategic advantages for operations to Europe, America and Asia."
(JAL) added that "late-night flights from Haneda to Europe, America and long-haul Asia will complement existing daytime services at Narita to these regions and greatly expand flight options to meet the demands of business (C) travelers with convenient flight timings." International flights to/from (HND) will be operated with a mix of 767s and 777s and many will take advantage of the airport's 24-hour operations to operate at late hours with prime arrival times at destinations. For example, flights to (CDG) will depart at 1:30 am for a 6:20 am arrival, flights to (SFO) will depart at 12:05 am for a 4:05 pm arrival, and service to (SIN) will depart at 11:50 pm for a 6:30 am arrival.
Japan Airlines (JAL) will move its flight operations at Indira Gandhi Airport in New Delhi to the newly-opened Terminal 3 from Terminal 2 on July 30. The 120-acre terminal features a dedicated (JAL) check-in island.
The Japanese government reportedly is considering guaranteeing repayment of private bank loans to bankrupt Japan Airlines (JAL)/(JAS). According to Yomiuri Shimbun, the Enterprise Turnaround Initiative Corporation (ETIC)of Japan would back the loans in order to enhance (JAL)/(JAS)'s efforts to negotiate with creditor banks ahead of its rehabilitation plan deadline at the end of August.
The newspaper reported that Hideo Seto, Chairman of the government-backed turnaround body's committee overseeing (JAL)/(JAS)'s bankruptcy restructuring, said that the (ETIC) may throw a lifeline to (JAL)/(JAS) by guaranteeing repayment of about ¥500 billion/$5.7 billion in loans. Seto told media that "we'll probably reach an agreement by around early August."
The state-affiliated Development Bank of Japan and the turnaround body already have arranged a total of ¥650 billion in loans, of which half has been used. However, the government wants to switch (JAL)/(JAS)'s creditors to private banks as soon as possible to rehabilitate the airline with private-sector funds.
There are also calls for more route and staff cuts, which (JAL)/(JAS) warns could ruin its operations. It is further understood that a cancellation of seven 777s is from (JAL).
August 2010: Japan Airlines (JAL) and Vietnam Airlines (VIE) will expand the scope of their code share agreement from October 1 to again offer (VIE)-operated code share flights between Nagoya Chubu and Ho Chi Minh as well as between Tokyo Narita and Hanoi.
Japan Airlines (JAL)/(JSA), in the midst of a bankruptcy restructuring, announced it will sell its 79.6% stake in (JAL) Hotels and additionally will merge four sales subsidiaries into one unit.
The (JAL) Hotels' shares will be acquired by Hotel Okura under terms of a stock transfer agreement. (JAL)/(JAS) is aiming the complete the transaction by the end of next month. Financial terms were not disclosed. "There has been intense competition in the hotel industry with a decline in guest figures following challenging economic conditions," (JAL)/(JAS) said. The airline filed for bankruptcy under Japan's Corporate Rehabilitation Law in January and said last week it is "aiming to make swift, fundamental reforms." The Japanese government reportedly is considering guaranteeing repayment of private bank loans to (JAL)/(JAS) ahead of the company's deadline at the end of this month to file its official rehabilitation plan.
(JAL)/(JAS) said it will keep an 11.1% stake in (JAL) Hotels and the brand names of hotel chains owned by the company, "Hotel Nikko" and "Hotel (JAL) City," will "be retained" and guests will still be able to accumulate (JAL) frequent flyer miles. The airline said it plans to cooperate "closely with Hotel Okura as a strong business partner." (JAL) founded (JAL) Hotels in 1970. It now manages 58 hotels including 40 in Japan.
(JAL)/(JSA) announced that four of its subsidiary sales companies (JAL Sales Company, (JAL) Sales Hokkaido Company, (JAL) Sales West Japan Company and (JAL) Sales Kyushu Company) will be merged into a single company called (JAL) Sales from October 1. The combination "will constructively draw together the strengths of the four companies in terms of marketing and sales expertise, management skills, human resources (HR) and know-how," (JAL) said, adding that it would "rapidly improve …operating efficiencies and…help drive the early recovery of [JAL]/(JAS)."
(JAL)/(JAS), undergoing bankruptcy rehabilitation, plans to cut -19,133 jobs from its workforce of 47,000 by the end of March 2015, according to documents cited by "Kyodo News." (JAL)/(JAS) filed for bankruptcy under Japan's Corporate Rehabilitation Law in January and is facing an August 31 deadline for filing its official reconstruction plan. "Kyodo," citing a final draft of that plan, unveiled many of the airline's targets for cuts, some of which are more severe than previously stated. For example, (JAL)/(JAS)'s prior high estimate on job cuts was around -16,000.
The job cuts and overall reduction of associated costs are expected to bring (JAL)/(JAS) savings of -¥255.2 billion/-$2.98 billion in its 2011 to 2012 fiscal year, according to a "Reuters" summary of "Kyodo's" report. By 2014, (JAL)/(JAS) hopes to post a +¥106.7 billion net profit, according to the draft plan.
Even while slashing staff and selling off assets, (JAL)/(JAS) said it plans to continue with the introduction of 65 new airplanes comprising 737-800s, 777-300ERs and 787-8s. It will retire 22 A300-622Rs and 36 747-400s by March 2011. Some 25 MD-80/-90s are also slated to be retired during the restructuring process.
"Kyodo" additionally reported that (JAL)/(JAS) plans to sell off two subsidiaries, Chubu Sky Support Company and (JAL) Ground Service Kansai Company, which manage ground operations for Chubu and Kansai airports, respectively.
The painful restructuring of Japan Airlines (JAL)/(JAS), which is under bankruptcy protection, is reflected in its traffic results for the traditional Japanese summer vacation period August 6 to 15. (JAL) carried 325,498 passengers on international flights during the 10 days, down -11.9% compared to the same period last year, although load factor jumped +5.9 points to 89.2% LF on a -17.7% (ASK) drop in capacity. On domestic routes, (JAS) carried a total of 1,146,315 passengers, -10.8% less than a year ago. Domestic capacity was down -8.2% (ASK)s.
Japan Airlines (JAL) has formally unveiled a winter schedule that reflects the dramatic route restructuring announced in April through which (JAL)will drop 45 routes in addition to previous cuts. Among the destinations it is in the process of eliminating are Amsterdam, Milan, Rome, Sao Paolo, Brisbane, Denpasar, and Kona. Even on many routes (JAL) will continue to operate, (JAL) will downsize airplanes.
(JAL) said Tokyo Narita (NRT) - Seoul Incheon flights will be operated with a 767-300ER instead of 777-300ER from October 31, while (NRT) - Honolulu will be operated with a 767-300ER instead of a 747-400 from March 1, 2011. (NRT) - Singapore will be operated with a 767-300ER in place of a 777-200ER from October 31, while Nagoya - Tianjin flights will switch from a 767-300ER to a 737-800 from October 1.
But (JAS) will increase the number of daily flights between Tokyo Haneda and five domestic destinations from October 31. (JAL)/(JAS) filed for bankruptcy in January under Japan's Corporate Rehabilitation Law.
September 2010: American Airlines (AAL) said it will move its Tokyo-based Asia/Pacific regional office to a vacant floor at Japan Airlines (JAL)/(JAS)'s (JAL) Building headquarters by January. The Oneworld (ONW) alliance partners have jointly applied to the Japanese Transport Ministry and the USA Department of Transportation for antitrust immunity (ATI) to operate as if they are one airline for commercial purposes on flights between North America and Asia. "With American (AAL)'s proposed Pacific joint business with (JAL)/(JAS) anticipated to receive government approval by the end of this year, co-locating our offices with those of (JAL) will be beneficial and enable us to forge closer working relationships," (AAL) said in a statement. "We have been working closely so that we will be able to implement our joint business as quickly as possible after government approvals are received."
Japan Airlines (JAL)/(JAS) unveiled a more radical restructuring plan than expected, calling for the retirement or layoff of more than >-16,000 staff by March 31, 2011, as well as the disposal of 103 airplanes and the scrapping of 49 loss-making routes.
(JAL)/(JAS) outlined its ambitious reorganization plan aimed at achieving a profit margin of 9.2% by March 2013 in a filing with the Tokyo court overseeing its bankruptcy case under Japan's Corporate Rehabilitation Law. It had been considering eliminating more than >-19,000 jobs but at a more gradual pace. Initially, (JAL)/(JAS) had suggested that just 31 routes would be terminated.
The restructuring package is dependent on a ¥521.5 billion debt waiver from financial institutions including the Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, Mizuho Financial Group and the Development Bank of Japan. The state-affiliated Enterprise Turnaround Initiative Corporation of Japan announced it will inject another ¥350 billion into the airline.
(JAL)/(JAS) is aiming for a November 30 court approval of its reorganization plan and intends to implement it from December 1. Key points include reducing employment from 48,714 as of March 31, 2010 to "roughly 32,600" by next March; reducing and downsizing the fleet; eliminating unprofitable routes; reforming airport cost structures and facilities; reviewing wage and benefit systems; liquidating and selling subsidiaries including hotel businesses; and enhancing its network via utilization of bilateral alliances with other carriers, particularly Oneworld (ONW) alliance partner, American Airlines (AAL).
The changes will be matched by what the airline called "a more efficient and strategic organization that is capable of reliably sharing the [company's] managerial policy." In a stark admission of past failings, (JAL)/(JAS)'s court submission said airline executives must learn "more quickly [about] the actual state of the Group's profit and loss." A panel of experts determined in August that "mismanagement and a lack of risk awareness" led (JAL)/(JAS) to bankruptcy.
In its court filing, (JAL)/(JAS) said it will be "clarifying where the responsibility lies for meeting numerical targets." It will construct a management control structure that is capable of reliably executing business plans."
(JAL)/(JAS) said it had debt of ¥959 billion/$11.3 billion as of the March 31 end of its fiscal year. It filed for bankruptcy in January with liabilities totaling ¥2.32 trillion.
(JAL)/(JAS) said it reached a stock transfer agreement with Hamakyorex, which owns and manages cargo distribution centers, to sell (JAL)/(JAS) its 72% stake in (JAL) Logistics. The move is part of (JAL)/(JAS)'s continuing effort "to achieve a swift and fundamental reform" via its ongoing bankruptcy reorganization process. Selling off subsidiaries is a key plank of its aggressive restructuring plan.
Founded in 1970, (JAL) Logistics provides ground transportation, warehousing, airfreight forwarding and customs clearance services to (JAL)/(JAS) and other clients. (JAL)/(JAS) said that Shizuoka-based Hamakyorex "possesses a high level of know-how in the field of third party logistics. Going forward, under the management of Hamakyorex, JAL Logistics will develop into an efficient third party logistics business that can offer customers the most suitable solutions that match their distribution needs." (JAL)/(JAS) is targeting October 1 for transferring its 172,700 shares in (JAL) Logistics to Hamakyorex.
(JAL)/(JAS)'s fleet changes involve the grounding of all its 747-400s, A300-600s, MD-81s and MD-90s by March 31, 2011, with the fleet going forward to be built around the 787, 777, 767, 737 and Embraer E170.
"This revitalization plan is the start of the rebirth of (JAL)/(JAS)," CEO, Kazuo Inamori told reporters in Tokyo. "We must do our utmost to make sure that this does not end as just fantasy."
767-346ER (40363, JA651J), delivery.
October 2010: All Nippon Airways (ANA) and Japan Airlines (JAL) have both secured regulatory approval from the Japanese Ministry of Land, Infrastructure, Transportation and Tourism for their respective transpacific joint ventures (JV)s with Continental Airlines (CAL) and United Airlines (UAL), on one hand, and American Airlines (AAL) on the other.
The approvals follow tentative Anti Trust Immunity (ATI) clearance for both alliances earlier this month from the USA Department of Transportation. On receipt of final (DOT) approval, the airlines say they will accelerate preparation of their joint network, with implementation expected in the first half of 2011.
(JAL) says that following the formal signing of "open skies" between the USA and Japan, which is anticipated shortly—and upon obtaining the final (DOT) approval—the two airlines will enter into a joint business agreement as two independent legal entities, enabling them to cooperate commercially on routes between North America and Asia.
(JAL) President, Masaru Onishi said, "There has been and will be more developments in the Japanese aviation sector and we are intent on keeping the marketplace competitive so that customers can benefit from more travel options and enhanced services. I look forward to taking our partnership with American Airlines (AAL) to a deeper level so that we can more effectively serve the needs of our valuable customers." (AAL) (CEO), Gerard Arpey called the (JV) "a win-win situation for all involved."
Japan Airlines (JAL) and American Airlines (AAL) reached a code share agreement under which (JAL) will place its code on daily (AAL) New York (JFK) - Sao Paulo Guarulhos 777 flights beginning October 31.
Japan Airlines (JAL) and Qantas Airways (QAN) expanded their code share agreement to allow (JAL) to place its code on (QAN)'s 2x-daily, Singapore Changi - Brisbane service from October 1. (JAL) is suspending its own Tokyo Narita - Brisbane service on September 30 after 22 years of operating the route. Japan Airlines (JAL) and Cathay Pacific (CAT) have expanded their code share to include flights operated by (CAT) on several destinations beyond Hong Kong. From November 1, (JAL) will put its code on (CAT) flights from Hong Kong to Mumbai, Chennai, New Delhi, Penang, Surabaya, Ho Chi Minh City, Johannesburg, Brisbane, Rome, and Milan. Other routes in the new arrangement are Bangkok - Mumbai, Bangkok - New Delhi and Singapore - Colombo. This will add 11 destinations and 13 new routes to the (JAL) network. The expansion follows their recent agreement to code share on every route between Japan and Hong Kong, and 13 selected (JAL) domestic routes, from October 31.
Coral Gables, Florida-based AerSale said it has acquired 19 747-400s from Japan Airlines (JAL), which is in the midst of an aggressive bankruptcy restructuring and made the decision this year to retire its 747-400 fleet. AerSale (CEO), Nicolas Finazzo said the 19 airplanes are "the remaining 747-400 passenger airplanes in (JAL)'s fleet." He called the purchase "a substantial financial commitment to AerSale's growth plan, enabling us to provide quality airplanes that have been impeccably maintained by a top-tier international airline. This is the second of several large scale multi-fleet acquisitions included in our 2010 business plan, with another announcement to follow soon." Earlier this year, it acquired (UPS)'s DC-8F freighter fleet.
AerSale describes itself as "a global provider of aftermarket airplanes, engines and their component parts to airlines, leasing companies and Original Equipment Manufacturer (OEM)/Maintenance Repair & Overhaul (MRO) service providers." (COO), Robert Nichols said some of the (JAL) 747-400s could be converted to freighters while others will be parted out.
"We believe most of these airplanes will continue to fly, whether as passenger airplanes or as freighters," he explained. "This said, we are proceeding to disassemble a few of the airplanes and a good many of the 76 (GE) (CF6-80C2B1F) engines installed on wing so as to position AerSale to become the leading provider of aftermarket (CF6-80C2) engines and material."
November 2010: The Tokyo court handling Japan Airlines (JAL)/(JAS)'s bankruptcy approved the company's restructuring plan calling for the retirement or layoff of more than >16,000 staff by March 31, 2011, the disposal of 103 airplanes and the scrapping of 49 loss-making routes.
(JAL)/(JAS) aims to achieve a profit margin of 9.2% by March 2013. The restructuring package includes a ¥521.5 billion/$6.2 billion debt waiver from financial institutions including the Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, Mizuho Financial Group and the Development Bank of Japan. The state-affiliated Enterprise Turnaround Initiative Corporation (ETIC) of Japan will inject another ¥350 billion into the airline, effectively becoming its owner for the time being. The plan calls for the re-listing of (JAL)/(JAS)'s stock following an Initial Public Offering (IPO) by the end of 2012.
(JAL)/(JAS) President, Masaru Onishi told a Tokyo news conference that the company will conduct "the rehabilitation plan faithfully," while Chairman, Kazuo Inamori said the -16,000 job cuts would be achieved "no matter what in order to turn (JAL)/(JAS) into a strong company." Onishi said the size of (JAL)/(JAS)'s workforce needs to be "appropriate to the scale of business."
Inamori revealed that even with the (ETIC) injection, (JAL) will still need another ¥50 billion. He suggested that the high-tech company he founded in 1959, Kyocera Corporation, "has ample capital" and could "provide such support." (JAL)/(JAS) filed for bankruptcy under Japan's Corporate Rehabilitation Law in January with liabilities totaling a staggering ¥2.32 trillion.
A key component of the company's restructuring strategy has been the offloading of non core assets, and (JAL)/(JAS) announced it has reached a stock-transfer agreement to sell its 50.7% stake in airline caterer (TFK) Corporation to Singapore's (SATS). (TFK) has a strong presence at both Tokyo airports, Narita and Haneda.
The USA Department of Transportation gave final approval for antitrust immunity (ATI) to Oneworld (ONW) alliance members American Airlines (AAL) and Japan Airlines (JAL) and, separately, to Star (SAL) Alliance members United Airlines (UAL), Continental Airlines (CAL) and All Nippon Airways (ANA), to operate their respective transpacific joint ventures (JV)s.
The (DOT)'s official clearance of both (JV)s follows tentative approval last month and enables the implementation of the USA - Japan "open skies" accord to which the two nations agreed late last year. The Japanese government has already approved both partnerships.
(ANA) President & (CEO), Shinichiro Ito said, "The clearance enables us to begin the preparatory work necessary to launch our joint venture (JV) next spring, and to cooperate more closely with United (UAL) and Continental (CAL) for the benefit of customers." (UAL)/(CAL) parent, United Continental Holdings President & (CEO), Jeff Smisek added that the (JV) will allow for "more convenient, more seamless" transpacific travel.
(JAL) President, Masaru Onishi noted that the (DOT)'s approval of its (JV) with (AAL) "clears all regulatory procedures necessary" for the carriers to begin working "expeditiously" toward implementation. (AAL) said the companies "anticipate launching their transpacific joint business in early 2011. It will provide enhanced travel options and experiences for passengers of both (AAL) and (JAL)."
(AAL) plans to launch daily, New York (JFK) - Tokyo Haneda (HND) service on January 20. (JAL) launched daily, (HND) - San Francisco service at the end of October. The carriers will code share on the flights.
Japan Airlines (JAL) will launch premium economy service on one of two daily 777-200ER Tokyo Narita - Bangkok services on January 26. The 777-200ERs are also equipped with (JAL) Shell Flat Seats in executive class.
The (JAL) Group announced a change in (JAL)/(JAS)’s organizational structure under renewed management. In order to “realize an effective and speedy revitalization,” (JAL)/(JAS) said it aims to create a “leaner financial constitution” while “maintaining the highest levels of safety” in its operation. These changes, which will include a change in the board of executive officers, are expected to take place from December 15.
According to (JAL)/(JAS), current Chairman, Kazou Inamori and President, Masaru Onishi will retain their positions. Akitoshi Nakamura, representative Director of a state-backed bankruptcy administrator, will assume the newly created post of Assistant to Inamori. Senior Managing Director, Koichi Mizutome will assume the post of Executive VP; Kyocera Communication System Company Chairman, Naoyuki Morita will share the Executive VP role with Mizutome.
Retiring from December 14 will be Senior Managing Executive Officers, Hiroyasu Omura and Chihiro Tamura, along with seven other executive officers.
In September, (JAL)/(JAS) unveiled a restructuring plan, calling for the retirement or layoff of more than >-16,000 staff by March 31, 2011, as well as the disposal of 103 airplanes and the scrapping of 49 loss-making routes.
The USA Department of Transportation on November 10 gave final approval for antitrust immunity (ATI) to (JAL)/(JAS) and American Airlines (AAL) for a transpacific joint business in early 2011.
The European Commission (EC) fined 11 airlines a total of €799 million/$1.1 billion for "operating a worldwide cartel which affected cargo services within the European Economic Area." In a statement, the (EC) said the carriers "coordinated their action on surcharges for fuel and security without discounts over a six-year period." Air France (AFA) received the largest fine at €182.9 million, followed by its affiliate (KLM) at €127.2 million. Other fines include British Airways (BAB) (€104 million), Cargolux (CLX) (€79.9 million), Singapore Airlines (SIA) (€74.8 million), (SAS) (€70.2 million), Cathay Pacific Airways (CAT) (€57.1 million), Japan Airlines (JAL) (€35.7 million), Martinair (MTH) (€29.5 million), Air Canada (ACN) (€21 million), Qantas (QAN) (€8.9 million) and (LAN) Airlines (€8.2 million).
Lufthansa (DLH) and its subsidiary Swiss International Air Lines (CSR) "received full immunity from fines under the (EC)’s leniency program, as it was the first to provide information about the cartel," the (EC) stated.
"It is deplorable that so many major airlines coordinated their pricing to the detriment of European businesses and European consumers," said (EC) VP Competition, Joaquin Almunia. "With today’s decision, the (EC) is sending a clear message that it will not tolerate cartel behavior." The (EC) charged that the "cartel members" coordinated pricing from December 1999 to February 2006.
The (EC) in late 2007 sent out official statements of objections to as many as 25 carriers regarding cargo price fixing. It said that 11 carriers originally charged were not fined.
The (EU), USA Department of Justice, Australian Competition and Consumer Commission and other authorities worldwide have been investigating anti-competitive practices in air cargo since 2005. Cargolux (C LX) President & (CEO), Ulrich Ogiermann and Senior VP Sales & Marketing, Robert Van de Weg were recently indicted in a USA court on charges of conspiring to fix and coordinate certain surcharge rates on air cargo shipments to and from the USA.
In a statement, Air France (AFA)/(KLM) said it considered the level of the fine to be "disproportionate given the fact that the economic analysis demonstrated that the actions in question had no detrimental effect on the freight shippers or the freight forwarders. Moreover, the level of the fines disregards the economic hardship that the air cargo industry has suffered, and will have a distortive effect on the level playing field." It added that it intends to appeal the decision to (EU) courts. Because the level of the fine exceeds the level of provisions already taken by the company for potential cargo antitrust payments, (AFA)/(KLM) will book a charge of €127 million for the first half of its current fiscal year.
(SAS) said in a statement it has not been involved in a global cartel and the fines are disproportionate. It also plans to appeal the decision, a process that could take several years. The fines will be accounted for in (SAS)'s third-quarter earnings.
Air Canada (ACN) said it may appeal the decision and said the penalty is “more than adequately” covered by a C$125 million provision it made in 2008. "We are highly disappointed and strongly contest the considerable level of the fines, which we believe to be disproportionate to (SAS) Cargo's actions," said (SAS) Chief Legal Officer, Mats Loennkvist. "We have cooperated fully with the (EC) during the entire investigation and, for slightly >4 years, we have disputed the (EC)'s view that (SAS) Cargo has been involved in a global cartel."
767-346ER (40365, JA653J), delivery.
December 2010: 767-246ER (23213, N767DA), sold to Dynamic Aviation.
January 2011: SEE ATTACHED "JAL-2011-01-2010 WORLD TOP TRAFFIC."
Japan Airlines International (JAL) has won the 2010 "Arrival Performance among Major International Airlines" award presented by http://www.FlightStats.com. (JAL) achieved a 2010 on-time performance record of 89.90%. For the category, the average on-time performance was 77.75% during this same period. This is the second year in a row (JAL) has won in this category, which includes airlines that fly a significant number of trans-oceanic or international flights spanning at least three continents with at least 30,000 flights operated annually.
Japan Airlines (JAL) and China Southern Airlines (GUN) reached a code share agreement under which (JAL) placed its code on (GUN)'s 4x-weekly, Tokyo Narita - Dalian service using an A321. (JAL) and (GUN) now code share on 23x-week on five routes.
Japan Airlines (JAL)/(JAS) said its Information Technology (IT) joint venture (JV) with (IBM) launched in 2001 will be "significantly reorganized" to enable (JAL)/(JAS) to have independent control of developing and operating (IT) systems as it moves toward emergence from its bankruptcy restructuring. By the end of June, (IBM) Japan's 51% stake in (JAL) Information Technology (IT) (JIT) will be transferred to (JAL), giving the airline a more than >90% holding in the company.
Under a reworked outsourcing agreement, (IBM) Japan "will continue to provide services in the area of system usage," (JAL) said in a statement, adding that the new contract terms will be in effect through June 2014. (JAL) (IT) "has been creating and maintaining business applications and providing almost all aspects of (IT) services to the (JAL) Group and has accumulated extensive know-how in related fields," (JAL) noted. "To ensure plans for the system renewal run smoothly in support of the revitalization of (JAL)/(JAS), it is essential to reinvigorate (JAL)/(JAS)'s internal (IT) department alongside the development of (JIT). From hence, (JIT) will operate distinctly as a core subsidiary providing fundamental support."
American Airlines (AAL) and Japan Airlines (JAL) said their transpacific joint venture (JV) will commence on April 1 with cooperation on 10 routes initially. The (JV) is made possible by antitrust immunity (ATI) approved by both countries' governments last year following agreement on a USA/Japan "open skies" air services accord. Initial flights included in the (JV) to be jointly operated are (JAL) service from Tokyo Narita (NRT) to New York (JFK), Chicago O'Hare (ORD), Los Angeles (LAX) and Vancouver, and from Tokyo Haneda (HND) to San Francisco (SFO). (AAL) flights included are (NRT) to (JFK), (ORD), (LAX) and Dallas/Fort Worth; (HND) - (JFK); Beijing - (ORD); and Shanghai to (ORD) and (LAX).
(AAL) President, Tom Horton said during a Tokyo news conference that "more than >$1.5 billion in revenue [was generated last year on] the transpacific routes included in the joint venture, and that doesn't include new routes" such as (JAL)'s (HND) - (SFO) flights. He said the Oneworld (ONW) alliance partners are in the process of co-locating facilities at airports and will coordinate schedules to create maximum flexibility for passengers. The 10 routes are "expected to be expanded upon [after] obtaining the required approval from authorities of third-party countries to add routes linking destinations beyond Japan and North America," (AAL) said in a statement. In addition to the joint routes, (AAL) and (JAL) plan to code share on 123 flights, including (AAL) flights throughout the USA and (JAL) flights in Japan beyond (NRT) and (HND). Horton noted that the (JV) will give (AAL) "more opportunity to expand [in the Asia/Pacific region] in years to come."
(JAL) President, Masaru Onishi added, "With our complementary strengths, the (JAL) - (AAL) team is well positioned to pursue further service enhancements for our customers and greater synergies for our businesses."
United Airlines (UAL), Continental Airlines (CAL) and (ANA) have similarly been granted (ATI) to operate a transpacific (JV).
767-346ER (40366, JA654J) delivery.
March 2011: Tokyo Narita (NRT) and Haneda (HND) airports partially reopened for some flights after a massive 8.9 magnitude earthquake forced the busy facilities to shut down for most of the day, leaving thousands of passengers stranded. Sendai Airport, close to the epicenter of the quake in northeast Japan, was inundated by a tsunami, with photos from the scene showing people gathered on the roof of a terminal to avoid flood waters.
News reports from Tokyo estimated that more than >20,000 people were stranded at (NRT) and (HND) in the aftermath of the earthquake. Airlines throughout the world announced that flights to Tokyo had been cancelled, delayed or diverted, with All Nippon Airways (ANA) saying around 130 of its flights were axed.
The "Kyodo" news agency reported that 700 flights overall have been cancelled as a result of the quake. Neither (NRT) or (HND) has reported serious damage. Some flights en route to Tokyo at the time of the quake were diverted to airports in southern Japan such as Osaka Kansai, while others went to Seoul Inchon.
Momentum in the air transport operational recovery in Tokyo following the devastating earthquake and tsunami could be difficult to maintain in the face of growing fears over radiation exposure from unstable nuclear reactors. Tokyo Narita and Haneda reported no major damage from the quake and flights to/from the airports were mostly operating normally the following Monday. But airlines on Tuesday started announcing new flight adjustments as the situation at the Fukushima nuclear facility worsened.
Japanese Prime Minister Naoto Kan warned that there is "still a very high risk of further radioactive material escaping" from damaged nuclear reactors in northeast Japan. The country has imposed a no-fly zone for civil airplanes in a 18-mile radius over the troubled Fukushima power plant.
Reports from Tokyo describe full outbound flights and passengers gathering at the airports hours before scheduled departures. Narita (NRT) said nearly 1,100 passengers were still stranded in its passenger terminals.
Derek Sadubin, a senior analyst with the Center for Asia Pacific Aviation (CAPA), said air travel to and from Japan is likely to be severely disrupted with changes in traffic flows possible. "Japanese tourists make up 25% of the Hawaiian market and 16% of the Australian market and in the short-term, trips are being canceled," he explained. He noted that one complicating factor is that the Japanese have generally chosen not to travel in the aftermath of previous disasters out of respect for the victims. The outbound Japanese air travel market is estimated at over 30 million passengers annually.
Most airlines said service to Tokyo would remain on schedule while the situation is carefully monitored. Japan Airlines (JAL)/(JAS) said all flights to Sendai are canceled until at least March 26 but added it will operate 32 extra flights to help move people and supplies to the most hard-hit areas. It will operate some flights to Hanamaki Airport, which is now reopened. Scheduled flights to the affected region will be operated with larger airplanes. Included in the 32 added flights will be two between Haneda (HND) and Yamagata.
(ICAO) and four other United Nation (UN) bodies issued a joint statement declaring air travel to/from Japan safe, adding that they are "monitoring the situation closely and will advise of any changes."
With Japan scrambling to manage unstable nuclear reactors following the March 11 earthquake and tsunami, the World Health Organization (WHO), the International Atomic Energy Agency (IAEA), the World Meteorological Organization (WMO), and the International Maritime Organization (IMO) joined with (ICAO) to state, "International flight and maritime operations can continue normally into and out of Japan's major airports and sea ports, excluding those damaged by the tsunami, according to the latest information available."
The organizations added that there is "currently no medical basis for imposing restrictions" and "screening for radiation of international passengers from Japan is not considered necessary at this time."
(IATA) said it welcomed the (UN) statement and reiterated that there "are no restrictions to normal air transport operations at Japan's major airports, including both [Tokyo] Haneda and Narita." Director General & (CEO), Giovanni Bisignani said in a statement: "Effective air links are critically important at this time. Our members are rising to the challenge of bringing relief supplies, equipment and people to Japan as well as connecting families affected by this tragedy." (IATA) has warned of a "major slowdown" near-term in the Japanese air transport market.
(JAL)/(JAS) officially unveiled the reintroduction of its iconic crane livery on a 767-300ER at its maintenance center at Tokyo Haneda. The change in logo was announced January 19 to emphasize (JAL)/(JAS)'s “new philosophy and corporate policy underscoring a re-commitment to provide the highest levels of service to customers.”
(JAL) Group President, Masaru Onishi said the “significance of adopting this new motif after a year since we entered the corporate reorganization proceedings in January 2010 is to mark the rebirth of Japan Airlines (JAL)/(JAS).” SEE ATTACHED - - "JAL-2011-03-TAIL LOGO CHANGE-A/B."
(JAL)’s last 747 has flown into retirement. (JAL) at one time operated the world’s largest fleet of 747s. (JAL)’s first 747 in service was in 1970 on the Tokyo Haneda - Honolulu route.
April 2011: This month marks the formal launch of the joint venture (JV) between American Airlines (AAL) and Japan Airlines (JAL), allowing them to coordinate schedules, fares and marketing efforts on trans-Pacific routes. The airlines, which already have a code sharing arrangement, account for about 28% of airline seats between North America and Tokyo's main international airport. Experts say the (JV) could result in more flexible schedules and lower fares, helping to win more business customers. Still, the launch comes at a difficult time, with all carriers trimming capacity following Japan's natural disasters and subsequent nuclear crisis.
Japan Airlines (JAL)/(JAS) said it will offer a limited number of administrative and maintenance staff (MT), flight attendants (CA) and pilots (FC) “special unpaid leave during the months of May and June” as a result of capacity reductions in the aftermath of the devastating natural and nuclear disasters in Japan. Recently, (JAL)/(JAS) announced a temporary reduction in capacity on international and domestic routes.
All Nippon Airways (ANA) and Japan Airlines(JAL)/(JAS) will operate relief flights to Sendai Airport (SDJ), more than a month after the airport was inundated by water following the March 11 earthquake and tsunami that devastated Japan's northeast. The badly damaged airport has been closed to commercial flights.
The Japanese government announced that it will "partially" reopen the airport. "The airport is being opened sooner than originally expected," (ANA) said, crediting the efforts of the Japanese transport ministry, the Japanese and USA militaries and "other organizations." (ANA) will operate thrice-daily, (SDJ) - Tokyo Haneda airport (HND) relief flights using a 737-800 painted with the message, "Forward together as one, Japan." The message will also be painted on several other (ANA) airplanes in both Japanese and English.
(JAL)/(JAS) said that while "operating conditions at Sendai Airport remain subject to change," it plans to operate daily flights to (SDJ) from (HND) and Osaka Itami (ITM) from April 13 to 20 utilizing 737-800s. It has also extended the temporary suspension of (SDJ) flights from Fukuoka, (ITM) and Sapporo until May 31. Since March 12, (JAL)/(JAS) has operated "more than >700 extra flights to airports in the north, namely Yamagata, Hanamaki, Akita and Aomori from Tokyo, Osaka and Sapporo," it said.
Japan Airlines (JAL)/(JAS) announced it is operating extra flights to Tohoku during the Japanese Golden Week holidays, from April 29 to May 8. (JAL)/(JAS) also added extra flights from Tokyo Haneda and Osaka Itami to Aomori on April 28.
May 2011: The (JAL)/(JAS) Group reported a consolidated operating profit of +¥188.4 billion/+$2.3 billion for the 2010 - 2011 fiscal year ended March 31, (JAL)/(JAS) said. It reported operating revenue of ¥1.36 trillion. (JAL)/(JAS) posted an operating profit of +¥147.7 billion and operating revenue of ¥1.14 trillion for the 2010 to 2011 year. (JAL)/(JAS) lost -¥649.5 million in its fiscal year ended March 31, 2009. It filed for creditor protection in January 2010 and emerged from its court-monitored bankruptcy restructuring in March 2011. It endured a steep drop in demand in the aftermath of the March 11 earthquake, tsunami and nuclear disaster.
(JAL)/(JAS) will operated non-scheduled extra round trip flights to Yamagata from Tokyo Haneda (May 13) and Sapporo, as well as to Hanamaki from Osaka Itami and Sapporo between May 9 to 22.
(JAL) will resume regular Tokyo Narita service to Honolulu (3x-daily) and Shanghai (2x-daily) in June. It temporarily suspended one daily flight on each route in April.
Japan Airlines (JAL) will expand its partnership with China Eastern Airlines (CEA) to increase the number of eligible flights under (JAL)'s Mileage Partnership Agreement. From June 1, (JAL) Mileage Bank members can earn mileage on all flights operated by (CEA) on Japan - China routes as well as China domestic routes, including non-code share flights that were not applicable.
(JAL) and (CEA) entered into a mileage agreement in 2008 and have also been code share partners since 2002. Currently, (JAL) code shares on (CEA)-operated flights, flying 18 routes between China and Japan and on five Chinese domestic routes.
(JAL) intends its first 787 route to be Tokyo Narita - Boston. The new 4x-weekly (JAL) flights will begin in April 2012, increasing to daily on June 1, 2012, and become part of the joint venture (JV) it operates with American Airlines (AAL), which will also provide some Boston feeder flights. (JAL) is also working on a partnership with Boston’s largest airline, JetBlue (JBL). Boston will become (JAL)’s first new USA gateway in 13 years.
July 2011: "Nikkei Business Daily" reported that Japan Airlines (JAL)/(JAS) will team up with Australia's Jetstar (IMU) to create a new Low Cost Carrier (LCC).
August 2011: Japan Airlines (JAL)/(JAS) will expand its Boeing (TBC) Airplane Health Management (AHM) coverage to its future 787 fleet. (AHM) is a software system that monitors, collects and analyzes airplane data to give airplane customers valuable, real-time maintenance information. This information allows (JAL)/(JAS) to initiate the needed maintenance immediately upon arrival at the airport gate.
(JAL)/(JAS) has 35 787 airplanes on order, and has licensed (AHM) for these airplanes in addition to its existing fleet of 46 777 airplanes.
“The (AHM) program has been helping (JAL)/(JAS) optimize the reliability of our fleet of 777s, and it will greatly support a successful introduction of the 787 into the family,” said Nobuhiro Sato, Executive Officer Engineering & Maintenance, (JAL)/(JAS). “On-time performance is very important to passengers and our goal is to continue providing our customers a positive experience.”
(JAL)/(JAS) was a developmental partner for the original (AHM) development effort and has used the service continuously since 2005. (JAL)/(JAS) will use the (AHM) Real Time Fault Management Module on their 777 and 787 airplanes to communicate in-flight information to ground stations for diagnosis and quick operational decisions by scanning troubleshooting and historical repair data. (JAL)/(JAS), recognized in the last 2 consecutive years as the most punctual major global airline, uses the system’s output to organize any needed maintenance operations and put the right people, parts and equipment in the right place at the right time for faster turnaround.
“Delivering real-time decision support information that improves airplane performance has proven to be very valuable to our customers,” said Per Noren, VP Information Services for Boeing Commercial Aviation Services (TBC).
(AHM) is easily accessed through the MyBoeingFleet.com portal. Alerts and notifications are delivered to airline personnel through a variety of communication methods including internet, personal digital assistants (PDA)s, e-mail and mobile devices. (AHM) is a key component in the larger Boeing (TBC) vision of helping customers succeed by transforming data into information they can use in real time to operate as efficiently as possible.
Qantas (QAN) low-cost carrier (LCC) subsidiary, Jetstar Asia (JSA) is expected to set up an airline in Japan as the demand for cheaper travel sweeps across Asia. The new carrier will be a partnership between Jetstar Asia (jsa), Japan Airlines (JAL)/(JAS) and the Mitsubishi Corporation.
The yet-to-be named airline will be launched at the end of 2012 and will be based at Tokyo Narita. The most likely name will be "Jetstar Japan," or simply "JJ."
According to sources in Australia, Mitsubishi will own 33.4% and (JAL)/(JAS) and Jetstar (IMU) will hold 33.3% each.
Discussions surrounding a (LCC) partner for (JAL)/(JAS) date back to January 2010 when (JAL)/(JAS) entered into a government-supervised bankruptcy restructuring. The (LCC) was touted as part of the reconstructed (JAL)/(JAS).
However, in October last year, (JAL)/(JAS) Chairman, Kazuo Inamori appeared to pour cold water on a (LCC), telling media he had reservations about delving into (LCC) operations. "I think we should refrain from chasing after scale expansion," he said. "Look at the USA example, where many low-cost carriers (LCC)s that entered the market have since exited."
September 2011: Japan Airlines (JAL) and China Southern Airlines (GUN) reached an agreement to expand their code share partnership. The two carriers will now place their codes on every flight operated by the other, between cities in China and Japan.
October 2011: The Qantas (QAN) Group's low-cost carrier (LCC) subsidiary, Jetstar Japan has named Miyuki Suzuki as (CEO) of the recently launched joint venture (JV) airline. Jetstar Japan is a partnership between the Qantas Group, Japan Airlines (JAL)/(JAS) and the Mitsubishi Corporation.
Suzuki, a Japanese national with 30 years of Information Technology (IT) and telecommunications experience across the Asia Pacific region, will start his job on December 1st.
Jetstar Japan, which hopes to begin operations by the end of 2012, will have a fleet of new Airbus A320s, configured for 180 passengers. The fleet will grow to 24 airplanes within the first few years. Initially, the (LCC) will fly domestically with short-haul international flights expected to start in 2013. It will announce domestic destinations by mid-2012, to possibly Sapporo, Fukuoka, and Okinawa.
767-346ER (40369, JA657J), delivery and 747-446 (27646, JA8922), sold to TransAero (TRX) and registered as (N922UN).
November 2011: Cathay Pacific Airways (CAT) announced an expansion of its code share with Japan Airlines (JAL)/(JAS) under which its (CAT) code will be placed on selected (JAL)/(JAS) service from Tokyo Haneda to Izumo, Miyazaki, Misawa, Matsuyama, Nagasaki, Oita, Tokushima, and Ube; Tokyo Narita - Nagoya; and Sapporo - Nagoya.
December 2011: Japan Airlines (JAL) and WestJet Airlines (WJI) have reached a code share agreement under which (JAL) will place its code on (WJI) flights between Vancouver and Calgary (6x-weekly), Edmonton (daily), Kelowna (daily), Montreal (daily), Toronto (6x-weekly), and Winnipeg (6x-weekly), beginning December 15.
The first Japan Airlines (JAL) 787-8 Dreamliner rolled out of Boeing (TBC)’s paint hangar in Everett, Washington. The 787-8 will be used for (JAL)’s new Tokyo Narita - Boston route and will be delivered early next year. SEE ATTACHED PHOTO - - "JAL-787 - 1ST - 2011-12."
The airplane's livery features the iconic new brand mark on its tail.
(JAL) (which placed the original 787 Dreamliner order in 2004 with a 2008 expected delivery date) has 35 787-8s on order.
January 2012: Japan Airlines (JAL) is operating -10% fewer seats to Hawaii and Guam this winter holiday season versus last season.
Japan Airlines (JAL)/(JAS), which exited bankruptcy last year, is planning an initial public offering (IPO) that may raise as much as ¥1 trillion/$13 billion as early as September, sources have told "Bloomberg."
A (JAL)/(JAS) spokesman confirmed to "Bloomberg" that Nomura Holdings and Daiwa Securities Group have been hired to lead the (IPO), and the airline is seeking overseas underwriters.
Japan’s Enterprise Turnaround Initiative Corporation (ETIC), the government-affiliated agency, holds 97% of (JAL)/(JAS)’s voting rights. Other stakeholders are considering selling ¥500 billion to ¥1 trillion of shares.
(JAL)/(JAS) reported a consolidated operating profit of +¥188.4 billion for the 2010 - 2011 fiscal year ended March 31. It filed for creditor protection in January 2010 and emerged from its court-monitored bankruptcy restructuring in March 2011.
(JAL)/(JAS) plans to submit its (IPO) filing to the Tokyo Stock Exchange in July, "Bloomberg" said.
(ETIC), which injected ¥350 billion of capital as part of the airline’s bankruptcy, must sell its stake by January 2013, three years after taking over (JAL)/(JAS).
(JAL)/(JAS) has outlined its plans for routes, fleet and flight frequency for the first half of fiscal year 2012 year ending March 31, 2013, as the 787 is introduced into service.
According to (JAL)/(JAS), it will launch the first 4X-weekly, 787 non-stop service between Tokyo Narita (NRT) and Boston Logan Airport, Massachusetts, USA on April 22, increasing to daily from June 1.
(JAL)/(JAS) plans to deploy the 787 on five existing 777 and 767 routes in (JAL)'s international network from the end of March. Routes include (NRT) - Delhi, (NRT) - Moscow, Tokyo Haneda (HND) - Beijing, (NRT) - Singapore (SIN) and (HND) - (SIN).
(JAL) said it will increase flight frequencies on its (NRT) - (SIN) route from 7x-weekly to 14x-weekly from October 28.
On the domestic side, (JAS) plans to reinstate daily Fukuoka - Hanamaki service from March 25, as well as 2x-daily, Niigata - Sapporo service from July 13. (JAS) will also schedule an increase in flight frequencies on nine other routes from (HND), Osaka Itami, Osaka Kansai, Sapporo and Chubu, and will suspend its Chubu - Ishigaki route from March 25.
February 2012: Japan Airlines (JAL)/(JAS)’s (JAL) Group reported consolidated net income of +¥146 billion/+$1.92 billion for the period April 1 - December 31, 2011, the first three quarters of the fiscal year ending March 31.
The Group reported total operating revenue of ¥909.1 billion, operating costs of ¥747.4 billion and operating income of +¥161.6 billion.
Japan Airlines (JAL)/(JAS) in March 2011 completed its court-monitored bankruptcy restructuring under Japan's Corporate Rehabilitation Law, and also announced more flight reductions as it dealt with a steep drop in demand in the aftermath of the March earthquake and tsunami.
(JAL)/(JAS) said it “continued to review airplane scheduling on each route and enforced measures to increase revenues, while examining every cost category to achieve greater cost reduction, such as in fuel costs. Profit consciousness of each department has also been enhanced through the implementation of a new revenue management system introduced last April, which has helped to increase management efficiency.”
(JAL)/(JAS) said consolidated international capacity declined year-over-year by -21.2% (ASK)s, and traffic (RPK)s were down -27.5%. Load factor was 68.8% LF, down -6 points on the year-ago period. Revenue from international passenger operations for the first three quarters of the fiscal year on a consolidated basis was ¥288.9 billion, representing 31.8% of total revenue.
Domestic (ASK)s declined -17.7% year-over-year, while (RPK)s declined -16.9%. Load factor rose slightly to 63.3% LF. Domestic passenger revenue in the first three quarters of the fiscal year on a consolidated basis was ¥367.2 billion, representing 40.4% of total revenue.
(JAL) and International Airlines Group (CAL)/(UAL) have announced plans for a new joint business between Japan Airlines (JAL) and British Airways (BAB) on flights between Europe and Japan. The joint business has been submitted for government approval.
Air Berlin (BER) and Japan Airlines (JAL) have reached a code share agreement under which (JAL) will place its code on (BER)’s 6x-weekly Frankfurt - Berlin service on February 12.
(JAL) will launch Tokyo Narita service to San Diego (4x-weekly on December 2012; to daily on March 2013) and Helsinki (4x-weekly March 2013, to daily in first half of fiscal year 2013) using the 787, code sharing with American Airlines (AAL) and Finnair (FIN).
JetBlue Airways (JBL) and Japan Airlines (JAL) announced an interline agreement, which launched February 15. Under the terms, customers can book tickets for combined travel on JetBlue (JBL) and Japan Airlines (JAL) through New York John F Kennedy Airport and Los Angeles International Airport.
Pratt & Whitney (P&W) has signed two seven-year agreements worth an estimated $450 million with Japan Airlines (JAL)/(JAS) to provide maintenance services for its (PW4090) engines, as well as part repair services for its fleet of (PW4074), (PW4077) and (JT9D) engines.
Japan Airlines (JAL)/(JAS) has placed a firm order for 10 787-9s and converted 10 787-8s it already had on order to 787-9s.
The new order and conversion bring (JAL)/(JAS)'s total 787 Dreamliners on order to 45, comprising 25 787-8s and 20 787-9s. It also still has 20 787 options.
"The 787-9 is a slightly larger version that can fit approximately 50 more seats than the 787-8 configured for international routes," JAL said in a statement. "Equally efficient as the 787-8 but with more seat capacity, the unit cost per seat on the 787-9 is estimated to be lower."
March 2012: Japan Airlines (JAL) has taken delivery of its first 787-8 as the second 787 operator after rival (ANA) - All Nippon . It plans to initially use the new 787 for a new route from Tokyo Narita New Tokyo International airport (NRT) to Boston General Edward Lawrence Logan International airport (BOS) that it will launch on April 22. Singapore Changi International airport (SIN) is expected to receive the 787 next on services from both Tokyo Haneda airport (HND) and Tokyo Narita New Tokyo International airport (NRT) in the fall.
SEE ATTACHED - - "JAL-2012-03-A/B/C/D - 787 DELIVERY.
April 2012: Japan Airlines (JAL) and JetBlue Airways (JBL) reached a code share agreement under which (JAL) will place its code on select (JBL) New York and Boston flights to 21 USA destinations, from April 22.
May 2012: The (JAL) Group (JAL)/(JAS) reported a consolidated net profit of +¥186.6 billion/+$2.33 billion in the fiscal year 2011, which ended March 31.
Operating revenue was ¥1.205 trillion, while expenses were ¥999.8 billion, producing an operating income of ¥204.9 billion.
(JAL)/(JAS) said it was badly impacted by the aftermath of the earthquake and tsunami that hit Japan in March 2011 as well as floods in Thailand later in the year. Balancing this, the strong yen boosted tourist traffic and some routes, such as India, showed growth.
Consolidated international passenger capacity declined -16.8% for the reporting period when measured in (ASK)s; demand declined -20.3% in terms of (RPK)s year-over-year.
Domestic passenger capacity fell -13.5% in terms of (ASK)s and demand reduced -12.3% in terms of (RPK)s compared to the year-ago period. Load factor was +0.8 points, up to +62.7% LF from the same period last year.
“The outlook for fiscal year 2012 is uncertain due to the prevailing economic situation faced by the company, such as concerns of a downward swing in the global economy due to the European financial crisis and rising fuel prices caused by geopolitical risks in the Middle East.” However, (JAL)/(JAS) said the operating environment is “entering a new phase with the launch of (JAL)/(JAS)’s 787 Dreamliners and the entry of low-cost carriers (LCC)s into the Japanese market.”
Japan Airlines (JAL)/(JAS) has now also named Denpasar Ngurah Rai Bali International airport (DPS) as a potential destination that it might add to its network again, thanks to the 787-8s it has started putting into service recently.
Japan Airlines (JAL)/(JAS) and the International Airlines Group (IAG) (BAB)/(IBE) have been granted antitrust immunity (ATI) from the Japanese Ministry of Land, Infrastructure, Transport & Tourism (MLIT) to cooperate commercially on flights between Europe and Japan.
The joint business, which will provide better links and more routes between the European Union (EU) and Japan, is expected to launch by late March 2013.
The revenue-sharing agreement will strengthen the Oneworld (ONW) alliance, enabling it to compete more effectively with other global alliances, according to (JAL)/(JAS).
(JAL) President, Yoshiharu Ueki said, "Amid the evolving Japanese aviation industry, the (ATI) will enable us to build a strong value-creating relationship with British Airways (BAB) that can benefit our customers as well as our businesses.”
June 2012: Virgin America (VUS) has announced an interline agreement with Japan Airlines (JAL), connecting their networks across North American and Asian routes.
(VUS) has grown to 18 destinations and a fleet of 52 new airplanes since its launch in August 2007. It also has interline agreements with Virgin Australia (VOZ), Virgin Atlantic (VAA), Air New Zealand (ANZ), Emirates (EAD), Korean Air (KAL), Singapore Airlines (SIA), Cathay Pacific (CAT), South African Airways (SAA), El Al (ELA), Qantas (QAN), China Airlines (CHI), Ethiopian Airlines (ETH), Hawaiian Airlines (HWI) and Air Pacific APC).
(JAL) operates daily service from San Francisco to Tokyo Haneda and daily nonstop service from Los Angeles (a focus city for (VUS)) to (JAL)'s hub at Tokyo Narita (NRT), where travelers may connect to most major cities in Asia including Bangkok, Beijing, Hong Kong, Kuala Lumpur, Singapore, Seoul, Shanghai, and Taipei.
In addition, (JAL) serves (NRT) from Boston, Chicago O'Hare, and New York (JFK). Both airlines will transfer baggage between connecting flights to passengers’ final destinations.
Japan Airlines (JAL) has adjusted its international route and flight frequencies for this financial year. (JAL) confirmed it will launch 4x-weekly, Tokyo Narita (NRT) - San Diego, California on December 2, which will be jointly served with Oneworld (ONW) alliance partner, American Airlines (AAL).
(JAL) will increase its (NRT) - New Delhi service to daily on October 28, initially using its 777-200ER on three of 7x-weekly through November 30. After that, the 787-9 will take over the route.
The first two operators of the 787-8 are seeing better-than-anticipated fuel burn, despite prior expectations of below-par performance as a result of data from predelivery flight tests.
The numbers, though based on early experience with a relatively small fleet on a variety of routes, are surprisingly positive given the early configuration of the airframes and engines. The operators have not yet incorporated all the planned weight and fuel burn improvements of follow-on production versions.
Four of the current active 787 fleet are from an early production block in which each is thought to be around 8,800 lbs over specification weight, while the remainder are lighter airplanes built from the block point change introduced from line No 34.
Boeing (TBC), which is expected to comment officially on the 787’s in-service fuel burn numbers at the Farnborough air show next month, is in the midst of introducing weight reductions and other enhancements to compensate for what was expected to be a relatively significant shortfall in the planned +20% improvement over the 767.
Yet figures from launch airline All Nippon Airways (ANA) show fuel savings are up to -21% on long-range flights, while figures for the General Electric (GEnx-1B)-powered airplanes at Japan Airlines (JAL) indicate potentially slightly better numbers.
(GEC) says initial performance data show its (GEnx-1B) engine has a 2% fuel burn advantage over the competing Rolls-Royce (RRC) (Trent 1000), not counting an additional 1% benefit from expected performance retention in terms of sustained exhaust gas temperature margin. The first (GEnx-1B)s are in service with (JAL), while 787 launch operator (ANA) uses 787s powered by the (Trent 1000).
(ANA) earlier this month was the first to reveal that its airplanes were producing around -21% lower fuel burn on international flights compared to the 767-300ER that the 787 is designed to replace.
(ANA), which accepted its ninth 787 on June 24, is believed to have been anticipating a -17 to -19% improvement, based on the (Trent 1000) Package B that Rolls (RRC) introduced to counter some deficiencies seen in flight testing.
After its first six months of service, (ANA) says the 787 efficiency levels are slightly up on the -20% savings originally expected at the beginning of the program. On domestic routes, the saving is -15 to -20%, which meets expectations, say (ANA) officials. The short-haul sub-fleet includes four early delivery 787S powered by the interim (Trent 1000) Package A standard engine. (ANA)’s long-haul configured 787s operate between Tokyo Haneda Airport and Frankfurt Airport, with additional transpacific routes from Tokyo Narita International Airport to Seattle-Tacoma International Airport and Norman Y Mineta San Jose International Airport in California due to be launched by early 2013.
July 2012: Japan Airlines (JAL)/(JAS) is pressing on with plans to return to the stock market, the company confirmed.
“It is true that the (JAL)/(JAS) is aiming to relist, but we are not able to discuss any details of its schedule or size,” a company official said.
(JAL)/(JAS) President, Yoshiharu Ueki had said in the "Financial Times" that the relisting was “proceeding as scheduled.” Ueki declined to give details about its timing. “We are under tight restrictions not to discuss any details related to the Initial Public Offering (IPO), so Mr Ueki gave no comments on that,” the (JAL)/(JAS) official explained.
After its 2010 bankruptcy, (JAL)/(JAS) introduced a rigorous cost and fleet-planning exercise that has seen it return to the black. It posted profits of +JPY186.6 billion/+$2.36 billion for the FY2011/2012 on revenues of JPY1.2 trillion.
(JAL) launched a code share with NIKI (NKI) July 1 under which (JAL) will place its code on (NKI) 6x-weekly, Frankfurt - Vienna service.
August 2012: Japan Airlines (JAL)(JAS) has reported a first-quarter net income of +JPY26.9 billion/+$343.5 million, more than twice the net income of +JPY12.7 billion in the year-ago quarter. (JAL)/(JAS) said strong yen and good demand lifted its balance sheet. (JAL)/(JAS)’s first reporting period for fiscal year 2012 runs from April 1 - June 30.
Consolidated operating revenue increased +12.5% to JPY286.7 billion against a +7.4% increase in operating expenses to JPY255.3 billion.
“Robust demand from outbound-Japan leisure travelers driven by the strong yen yielded a greater influence on overall international demand, which increased +28% year-on-year, measured by revenue passenger kilometers (RPKs). The load factor was consequently pushed up by +12.3% points to 73.4% LF.”
First-quarter revenue for (JAL)/(JAS)’s consolidated international passenger operations increased +21.6% to JPY95.9 billion year-over-year.
On the domestic side, post-earthquake and tsunami recovery saw traffic (RPK)s rise +18% compared to the year-ago period. Load factor was 59.6% LF, up +3.5% points. Cargo was described as stagnant, which (JAL)/(JAS) attributed to problems in Europe.
Looking forward, (JAL)/(JAS) said there was no need to revise its full-year profit figures, which remain at +JPY130 billion.
Japan Airlines (JAL)/(JAS) has tentatively set the price for its initial public offering (IPO), scheduled for September 19, at between ¥3,500/$44.5 and ¥3,790 per share, according to the multiple reports from Tokyo. With 175 shares to be sold, (JAL)/(JAS) believes it can raise as much as ¥663 billion/$8.4 billion.
The (IPO) will enable the Enterprise Turnaround Initiative Corporation of Japan, the government-backed entity set up in January 2010 to bail out (JAL)/(JAS) and guide it through a bankruptcy restructuring, to end a more than two-year period of owing the carrier.
(JAL)/(JAS) was delisted from the Tokyo Stock Exchange shortly after entering bankruptcy restructuring.
Japan Airlines (JAL) will launch 4x-weekly, Tokyo Narita (NRT) - San Diego 787-8 service December 2, increasing to daily in March and 4x-weekly, (NRT) - Helsinki 787-8 service in March, increasing to daily from the middle of 2013.
Japan Airlines (JAL)/(JAS) and All Nippon Airways (ANA) are battling to get rights for new domestic services at Tokyo Haneda airport (HND). (HND)’s domestic arrival and departure slots will increase from 320,000 to 340,000 from the end of March 2013.
(ANA) holds 37.4% of (HND)’s domestic slots and (JAL)/(JAS) holds 41.3%.
(ANA) believes (JAL)/(JAS), which declared bankruptcy in 2010, should not get any slots. “It’s a failed company, which should be properly reflected in the decision” an (ANA) spokesman said.
(JAL)/(JAS) argues that during its restructuring, it withdrew from destinations that were also serviced by alternative carriers. Last month, (JAL) announced it was pressing on with plans to return to the stock market.
“From the point of view of encouraging inbound Japan travel, it is important to improve the connectivity between international-domestic travels. In the past, we saw a notable increase in visitors from Taipei to Matsuyama via Haneda when we started the flights, and in the same way, we want to bring the growth of Asia to more local regions and contribute to the hub functions of Haneda,” a (JAL)/(JAS) spokesperson added.
Japan’s Land, Infrastructure, Transport & Tourism Ministry, which is overseeing the process, has said it will announce a decision on the new slots in the fall.
Japan Airlines (JAL) will install new seats in every cabin class on its 13 777-300ERs with 8F in first- , 49C in business-, 40PY in premium economy- and 135Y in economy-class. The upgraded cabins will debut on daily, Tokyo Narita - London Heathrow service in January 2013.
(JAL) will next outfit its fleet of 767-300ER airplanes with full-flat business class beds, followed by a complete renewal of seats in every other class beginning in the second half of 2013.
September 2012: Japan Airlines (JAL) will increase daily, Tokyo Narita (NRT) - Singapore service to 3x-daily on October 28 and weekly (NRT) - New Delhi service to 7x-weekly on October 29.
(JAL) and British Airways (BAB) expanded a code share agreement, adding each other’s codes on daily London Heathrow - Tokyo Narita service as well as on (BAB)'s 5x-weekly service from Tokyo Haneda.
Japan Airlines (JAL) will temporarily cut some of its daily services to China due to escalating political tension between the two countries over a chain of disputed islands in the East China Sea.
(JAL)’s Tokyo Narita (NRT) - Beijing and Osaka (Kansai) - Shanghai (PVG) service will reduce from 2x- to once daily. (JAL) will cut (NRT) - (PVG) service from 3x- to 2x-daily, it said. The cuts will be effective October 10 - 27.
(JAL) said reduction in services were “in response to recent irregular changes in travel demand.”
All Nippon Airways (ANA) said that 40,000 seat reservations were cancelled on flights between Japan and China from September to November, due to escalating political tension between the two countries over a chain of disputed islands in the East, "Reuters" reported.
Juneyao Airlines (JYA) has delayed the opening of its new 4x-weekly, Shanghai - Okinawa route to November, which was scheduled to launch September 20. Spring Airlines (CQH) cancelled its 10 charter flights to Tottorri, which was to launch September 23.
Japan Airlines (JAL)/(JAS) launched "JAL Sky Project," a revamp of its in-flight products and services on international routes. Under the project, (JAL)/(JAS) will first install seat design changes to 13 777-300ERs.
October 2012: All Nippon Airways (ANA) said that 40,000 seat reservations were cancelled on flights between Japan and China from September to November, due to escalating political tension between the two countries over a chain of disputed islands in the East, "Reuters" reported.
Japan Airlines (JAL) last month announced it would temporarily cut some of its daily services.
Juneyao Airlines (JYA) has delayed the opening of its new 4x-weekly, Shanghai - Okinawa route to November, which was scheduled to launch September 20. Shanghai-based Spring Airlines (CQH) cancelled its 10 charter flights to Tottorri, which was to launch on September 23.
Japan Airlines (JAL) will launch 4x-weekly, Tokyo Narita - Helsinki service on February 25, increasing to daily in the first half of Fiscal Year (FY) 2013.
Japan Airlines (JAL) and British Airways (BAB) have added Rome, Milan, Bologna, Amsterdam, and Warsaw to their code share cities. (JAL) will place its code on the (BAB)-operated service from London.
(JAL) started operating the 787-8 to Singapore on the Tokyo Narita - Singapore route. (JAL) initially operated the 787s three times a week on services from Narita and Tokyo's Haneda airport, before increasing that to twice daily from Narita and daily from Haneda on 28 October.
November 2012: Bangkok Airways (PGB) and Japan Airlines (JAL) launched a code share agreement under which (PGB) will place its code on (JAL) service to Bangkok from Tokyo Haneda, Tokyo Kansai and Mumbai. (JAL) will place its code on (PGB) service from Bangkok to Samui, Phuket, and Chiang Mai.
(JAL) is running an 84% LF on its new Tokyo - Boston 787 flights, significantly above its system usage. (JAL) will launch 4x-weekly, Tokyo - San Diego 787 service on December 2, increasing to daily March 1.
December 2012: (JAL) became the first carrier to launch a route to Asia from San Diego, California (SAN) on December 2, as it launched non-stop services to Tokyo Narita (NRT). The 9,000 km route is operated with one of (JAL)’s 787s, making San Diego the third, after Seattle and Boston, USA city to boast long-haul 787 Dreamliner flights.
January 2013: American Airlines (AAL) will code hare with Japan Airlines (JAL) beginning January 27. (JAL) will place its code on (AAL)-operated service from Dallas Fort Worth to Sao Paulo (daily) and Rio de Janeiro (3x-weekly) and from New York (JFK) to Rio de Janeiro (daily) and Sao Paulo (daily).
(JAL) and S7 Airlines (SBR) entered a code share agreement under which (JAL) will place its code on (SBR) service from Tokyo Narita to Khabarovsk (weekly) and Vladivostok (2x-weekly) beginning January 30. (SBR) will begin placing its code on (JAL)-operated flights between Narita and domestic points in Japan beginning February 15.
INCDT: A fire erupted on a Japan Airlines (JAL) 787 while the airplane was parked at Boston Logan Airport.
There were no passengers aboard the airplane at the time of the January 7th incident. According to "The Boston Globe," Massachusetts Port Authority, Fire Rescue Chief, Robert Donahue said the fire occurred in the middle part of the fuselage “in the avionics compartment underneath.” He added the fire appeared to originate in a battery used by the 787’s auxiliary power unit (APU). Firefighters successfully extinguished the fire and there were no injuries, the "Globe" reported.
The USA National Transportation Safety Board (NTSB) said it “has opened an investigation into a fire discovered on a Japan Airlines (JAL) 787 after it landed in Boston.”
Boeing (TBC) said it is “working with our customer” to determine what happened and will provide updates later.
The incident is the latest problem for the 787 Dreamliner program. At least three 787s (two operated by United Airlines (UAL) and one by Qatar Airways (QTA)) had electrical problems last month. In early December, the USA (FAA) issued an Airworthiness Directive (AD) ordering 787 operators to inspect the airplane for “improperly assembled” engine fuel feed manifold couplings, citing a fire risk.
A fire during a November 2010 787 test flight necessitated an emergency landing and halted the 787 Dreamliner flight test program for several weeks.
The USA National Transportation Safety Board (NTSB) began its investigation into the Japan Airlines (JAL) 787 fire that occurred January 7th in Boston.
Meanwhile, another Japan Airlines 787 had to return to the gate at Boston Logan Airport on January 8th after taxiing for takeoff owing to a fuel leak, according to multiple media reports and statements made by the Massachusetts Port Authority.
Regarding the fire, the (NTSB) said in an initial statement on its investigation that the 787’s auxiliary power unit (APU) battery “had severe fire damage.” The fire is believed to have erupted in the (APU) battery, Massachusetts Port Authority officials said.
The (NTSB) stated, “Thermal damage to the surrounding structure and components is confined to the area immediately near the (APU) battery rack (within about 20 inches) in the aft electronics bay.” It added that (JAL) has indicated maintenance (MT) and cleaning personnel boarding the 787 (which was empty of passengers and crew following a flight to Boston from Tokyo) detected smoke in the cabin and contacted firefighting officials at Logan. “Rescue and fire personnel and equipment responded to the airplane and detected a fire in the electronics and equipment bay near the (APU) battery box,” the (NTSB) said. “Initial reports indicate that the fire was extinguished about 40 minutes after arrival of the first rescue and fire personnel. One firefighter received minor injuries.”
The (NTSB) noted the USA (FAA) and Boeing (TBC) are parties to its investigation, adding that the Japan Transport Safety Board will also participate.
Boeing (TBC) said in an emailed statement it is “working closely with the (NTSB), our customer and other government agencies” to determine what sparked the fire. (TBC) warned it “would be premature to discuss additional details at this stage as the investigation is ongoing. However, nothing that we’ve seen in this case indicates a relationship to any previous 787 power system events, which involved power panel faults elsewhere in the aft electrical equipment bay.”
INCDT: All Nippon Airways (ANA) has grounded its 787 fleet after one of its 787s made an emergency landing at Takamatsu airport, the "BBC" and other news agencies have reported.
The "BBC" said a spokesperson for (ANA) said all passengers and crew were taken off the airplane, which was operating as flight NH 692 from Yamaguchi Ube to Tokyo Haneda. It also reported that the flight crew (FC) had reported a battery malfunction and that passengers were evacuated via the 787's emergency chutes.
According to a "Reuters" report, smoke appeared in the 787’s cockpit.
The 787 is under review by the (FAA) and the Japanese government following a number of safety incidents. A fire the previous week aboard a Japan Airlines (JAL) 787 at Boston Logan Airport was the most high-profile of a number of safety incidents that have occurred on 787s in recent weeks. The USA National Transportation Safety Board (NTSB) is conducting an investigation into that incident.
(JAL) and (ANA) combined have taken delivery of 24 of 50 787s in service worldwide; (ANA) was the 787 Dreamliner’s launch customer.
A very short time later, all 787 operators grounded their airplanes following the (FAA)’s emergency airworthiness directive (AD); the European regulatory authority, (EASA) also adopted the (AD).
Air India (AIN), Ethiopian Airlines (ETH), (LAN) Airlines, (LOT) Polish Airlines, Qatar Airways (QTA) and United Airlines (UAL) all suspended 787 flights. All Nippon Airways (ANA) and Japan Airlines (JAL) had already grounded their 787s after an (ANA) 787 was forced to make an emergency landing following a battery malfunction.
The (EASA) said it is working closely with the (FAA) as the primary certification authority and Boeing (TBC). “(EASA) has adopted the (FAA) (AD) in order to ensure the continuing airworthiness of the European fleet (currently two 787s operated by (LOT) Polish Airlines).
(QTA) (CEO), Akbar Al Baker said: “I previously stated that (QTA) will only stop operating our 787 Dreamliners if we receive such an instruction from the regulators. Safety remains the number one priority for (QTA). We ensure all our airplanes meet the most stringent safety standards and this will not be compromised in any way. We are actively working with Boeing (TBC) and the regulators to restore full customer confidence in the 787. “(QTA) will resume 787 operations when we are clear that the 787 meets the full requirements of the (AD) and our standards, which assure the safety of our passengers and crew at all times. So we are not flying the 787 until and only such a time this is achieved.” (QTA) has five 787s.
(ANA) confirmed that all 17 of its 787s remained suspended and it has cancelled 24 domestic flights and six international flights that were scheduled for tomorrow. (JAL) said it has made adjustments to flights originally scheduled to be operated with the 787 for the period January 19 to January 25. “During this period, the affected flights will remain as scheduled with a change in airplanes, except for the service between Narita and San Diego, which will be cancelled, and the service between Narita and Boston, which will have a set delay in departure time on certain days,” (JAL) said.
February 2013: Japan Airlines (JAL) has postponed the launch of 4x-weekly, Tokyo Narita - Helsinki 787 service originally scheduled for February 25. It has made adjustments to its international routes affected by the grounding of the 787 since January 16.
The All Nippon Airways (ANA) Boeing 787 lithium ion battery that failed January 16 exhibits signs of “thermal runaway,” according to Japanese investigators. Additionally, Boeing (TBC) is asking the USA (FAA) to allow it to conduct 787 test flights.
The Japan Transport Safety Board (JTSB) told reporters that the badly burned (ANA) 787 battery experienced an “uncontrollable high temperature” associated with thermal runaway, according to multiple reports from Tokyo. The USA National Transportation Safety Board (NTSB) has said the Japan Airlines (JAL) 787 lithium ion battery that sparked a fire in Boston January 7 similarly shows indications of thermal runaway.
The (JTSB) and (NTSB) both have been unable to determine a root cause of the lithium ion battery failures.
As part of the effort to determine what happened on the two airplanes and facilitate the process of lifting the worldwide 787 Dreamliner grounding, Boeing (TBC) is asking the (FAA) for permission to operate 787 test flights. An application for 787 test flights is “under evaluation” by the (FAA). (TBC) is not commenting further on the proposed flight testing.
The (ANA) event (involving the main battery in the forward electronic equipment bay) occurred in-flight and caused an unusual smell to permeate the airplane, prompting an emergency landing. The (JAL) 787 event (involving the battery used to start the auxiliary power unit (APU)) led to an on board fire while the airplane was parked following a Tokyo - Boston flight.
April 2013: Japan Airlines (JAL) and (LAN) Peru (LPU), Oneworld (ONW) Alliance members, will code share flights on USA, Japan and Peru services upon government approval.
(JAL) and LAN Peru (LPU), both oneworld members, will code share flights on USA, Japan and Peru services upon government approval.
Japan’s Ministry of Land, Infrastructure, Transport & Tourism has approved Boeing (TBC)’s fix for the 787’s battery system. The clearance issued April 26th follows in the footsteps of the (FAA)’s approval and paves the way for All Nippon Airways (ANA) and Japan Airlines (JAL)/(JAS), which operated 24 of the 50 787s in service worldwide when the 787 Dreamliner fleet was grounded January 16, to resume commercial service with their 787s. The airlines are not expected to restart commercial flights immediately; both carriers said all of their 787s will be test flown first and all pilots (FC) operating the 787s will have to gain renewed approval to fly 787s. (JAL)/(JAS) indicated it plans to begin commercial flights again by June.
According to multiple reports from Japan, (ANA) and (JAL)/(JAS) also said that once the 787s are back in service, they will remotely monitor the airplane’s lithium ion batteries in flight and remove, test and replace those lithium ion batteries after the airplanes have been in commercial service for several months.
Aviation Partners Boeing (APB) announced that Japan Airlines (JAL)/(JAS) has ordered six blended winglet systems (with options) for its 767-300ERs.
May 2013: Japan Air Lines (JAL) announced new flights with the re-introduction of 787-8 service June 1. (JAL) will begin daily, Tokyo Narita - Boston and – San Diego in the USA, Narita - and Haneda - Singapore, and Haneda - Beijing. Daily, Tokyo Narita - Helsinki will be launched from July 1. From July 12, Narita - Delhi will begin. On September 1, 787 Narita - Moscow (3x-weekly), Haneda - San Francisco, Narita - Sydney and – Bangkok will begin.
(JAL) has paid a dividend to stockholders worth 20% of its annual earnings.
June 2013: Japan Airlines (JAL)/(JAS) wants to start replacing "around 40" of its older 777 airplanes from 2019, Chairman, Masaru Onishi has said. Currently, (JAL)/(JAS) is considering the A350-1000, as well as the 787-10X and 777-9X. Onishi said the airline could come to a decision "soon" should the right terms be arrived at, but that (JAL)/(JAS) was not in any hurry. As with fellow Japanese carrier, (ANA) - All Nippon Airways, the prospect of a deal with Airbus Industrie (EDS) marks a possible departure from the carriers' historic allegiance to Boeing (TBC). (JAL)'s 777 fleet consists of 26 777-200s, 7 777-300s and 13 777-300(ER)s whose overall average age is 10.5 years.
(JAL) serves 22 countries, 75 destinations, and 123 routes.
787-8 (34842, JA834J), delivery.
July 2013: SEE NEW UPDATE - - "JAL-2013-07-A/B/C/D/E/F/G/H."
Japan Airlines (JAL) commenced services on the 7,800 km route from its Tokyo Narita (NRT) hub to Helsinki (HEL) on July 1. Daily flights are offered on the newly launched route and operated using 787s. Finnair (FIN), a fellow member of the Oneworld (ONW) alliance, provides direct competition in the market with its also daily service. (JAL) initially planned to launch flights on the route from Tokyo to Helsinki on February 25, but then had to postpone the launch due to the grounding of all 787s.
August 2013: (AJW) Aviation will provide spares support across Japan Airlines (JAL)/(JAS)’s fleet and subsidiary airlines. (AJW) will support (JAL)/(JAS)’s Boeing (TBC) airplanes from its Singapore stocks, which have extensive Boeing (TBC) component inventories. AJ Walter (AJW) added that it is "working closely" with (JAL)/(JAS)'s Engineering department to accommodate Japanese Civil Aviation Bureau regulations in its operations.
October 2013: Japan Airlines (JAL)/(JAS) has reported a first-half net income of +¥81.9 billion/+$834 million for the period ended September 30, down -17.8% from a year ago.
Japan Airlines (JAL) introduces 787-8 service December 1 on Narita - Sydney and December 2 on Narita - Bangkok routes.
Japan Airlines (JAL)/(JAS) said it will “formally seek a rational explanation and correction” of slot allocations at Tokyo Haneda Airport announced by Japan’s Ministry of Land, Infrastructure, Transport & Tourism (MLIT).
(JAL)/(JAS) said it had been notified by the (MLIT) that, of 16 additional slots available for Japanese airlines at the airport, it had been awarded just five, with the remaining 11 allocated to All Nippon Airways (ANA).
(JAL)/(JAS) said it had requested “an equal allocation based on the idea that equal distribution among the two airlines operating international flights would lead to the maximization of both convenience for passengers and benefit to the national interest.” However, it said the (MLIT) notification “diverged greatly from an even allocation.” “In addition,” (JAL)/(JAS) said, “the new criteria pertained to the establishment of a given new route which set the limitation for free business activities, and we sincerely regret that we cannot accept this.”
(ANA) had lobbied for a lion’s share of the slot allocation, pointing out that (JAL)/(JAS) had received a massive government bailout to save it from bankruptcy in 2010, putting (ANA) at a competitive disadvantage.
But (JAL)/(JAS) insisted that passenger and national interests should be the deciding factors. “Decisions regarding the allocation of national assets such as departure and arrival slots were not made from the standpoint of maximization of passenger convenience and the national interest. Additionally, no rational reason was given by (MLIT) as to how the current allocation would bring about such benefits,” (JAL)/(JAS) said.
(JAL)/(JAS) said it had received clarification that the decision was based on whether or not the criteria pertained to the establishment of a given new route. But it said: “It has not been specifically explained why new criteria have been abruptly established, why it is that routes established at Tokyo [Haneda] Airport are to be regarded as ‘new,’ or how they might impede or distort an appropriate competitive environment.”
Japan Airlines (JAL)/(JAS) reserves the right to sue the Japanese government for favoring rival (ANA) Holdings by allocating it more landing slots, raising the prospect of an unprecedented battle that could batter the nation’s airline industry. Asking a court to force the government to review its recent allocation would be a rare step for a Japanese company, especially one that once enjoyed cozy ties to politicians and regulators but which has fallen out of favor of Prime Minister, Shinzo Abe’s one-year-old administration. “It’s one of the steps we might take in the future,” said Yoshiharu Ueki said, when asked if legal action was one possibility.
Ueki said his company had asked the government to give a satisfactory explanation for the landing-rights handout, which saw (ANA) receive more than twice as many of the prized international slots at Haneda airport than (JAL).
(BAE) Systems officials signed a comprehensive agreement with Japan Airlines (JAL) to provide maintenance support for (JAL)’s commercial airplane fleet for three years. (BAE) Systems will provide repairs, spares, and modifications to the airplane electronics of (JAL)’s 737-800, 767, and 777 planes.
Under the three-year agreement, (BAE) Systems will maintain (JAL)’s fleet of 737-800, 767, and 777 airplanes at (BAE) Systems’ Boeing Gold Performance Excellence Award-winning Singapore Service Center and its Commercial Aircraft Solutions facility in Fort Wayne, Indiana.
(BAE) Systems supplies high-integrity flight and engine controls and a broad range of cockpit and cabin electronics for the maintenance, repair, and overhaul (MRO) market. The company’s global customer base includes many Asian carriers.
Japan Airlines (JAL)/(JAS) has signed a purchase agreement for 31 A350 XWBs (18 A350-900s and 13 A350-1000s), plus options for a further 25 airplanes - - SEE ATTACHED - - "JAL-A350-900 A350-1000 XWB 2013-10 ORDERS." It is also the first order Airbus (EDS) has received from Japan for the A350 XWB, confirming its continuing success with world leading airlines across the globe. (JAL)/(JAS) and Airbus (EDS) aim for entry into service (EIS) from 2019, with (JAL)/(JAS)’s A350 XWBs gradually replacing its ageing fleet approximately over a six year period.
“We will utilize the A350 XWB to maximum, which offers high level of operational efficiency and product competitiveness, while positively catering to new business opportunities after slots at airports in Tokyo are increased,” said Yoshiharu Ueki, President of Japan Airlines (JAL)/(JAS). “In addition to improving profitability with advanced airplanes, we always aim to deliver unparalleled services to customers with the latest cabin and steady expansion of our route network.”
In a typical three-class layout the A350-900 comfortably seats more than >300 passengers on routes as long as 8,100 nautical miles (nm). The A350-1000 is the largest member of the A350 XWB Family, seating 350 passengers on even longer missions up to 8,400 nm. All A350 XWB models are equipped with the new Rolls-Royce (RRC) (Trent XWB) engines.
Over >70% of the A350 XWB’s weight-efficient airframe is made from advanced materials combining composites (53%), titanium and advanced aluminium alloys. In addition to innovative materials, the A350 XWB brings together the very latest in aerodynamics, design and advanced technologies and provides significant improvement in fuel efficiency compared with competing models.
To date, the A350 XWB (MSN1) has completed around 300 flight test hours out of the campaign’s total 2,500 hours, which are to be achieved by five flight test A350’s over the next 12 months. Entry into commercial service of the A350-900 is scheduled for the second half of 2014. With this latest commitment, Airbus (EDS) has recorded more than >750 firm orders for the A350 XWB from 38 customers worldwide.
This is not (JAL)/(JAS)’s first ever order for Airbus airplanes. Before the merger by Japan Airlines (JAL) and Japan Air Systems (JAS), (JAS) ordered Airbus (EDS) airplanes.
SEE ATTACHED - - "JAL-2013-10 - AIRBUS ORDER-A/B/C/D."
November 2013: The (FAA) is poised to order airlines to avoid flying 787 Dreamliners and 747-8 jumbo jets with General Electric Company (GEC) engines near thunderstorms after some of the planes experienced ice buildup.
An airworthiness directive (AD) due to be released is an “interim action” to ensure pilots (FC) fly clear of icing conditions that could reduce thrust from (GEnx) engines. The USA move follows Japan Airlines (JAL)’s decision to shift to other jets from 787s on some Asia routes. The icing risk adds urgency for pilots (FC) to steer clear of thunderstorms already shunned because of potentially deadly lightning and turbulence. Jets flying at high altitudes through tropical zones can be at risk from powerful storms that promote the formation of performance-sapping ice, according to (GEC). “It’s a relatively rare phenomenon, because it requires just the right meteorological conditions,” Hans Weber, President of San Diego-based aviation consultant, Tecop International Inc, said. “This isn’t a problem that will be limited to (GEC) engines. These crystals have been found in all engines at high altitudes near thunderstorms.”
The 787 Dreamliner, the first jet made chiefly of composite materials, entered service with (ANA) Holdings Inc’s All Nippon Airways (ANA) in October 2011. (ANA), the biggest 787 Dreamliner operator, uses Rolls-Royce Holdings (RRC) engines on its planes.
(JAL)’s 787s have (GEnx) engines, as do the 787S flown by United Airlines (UAL), the only USA airline flying 787s. (UAL) hasn’t changed schedules or routes for its 787s, said Christen David, a spokeswoman.
Atlas Air Worldwide Holdings Inc (AAWW) (TLS), the lone USA operator of 747-8s, adjusted operations after Boeing (TBC)’s November 23 warning for (GEnx)-equipped jets to stay 50 nautical miles/93 kilometers from storms, said Bonnie Rodney, a spokeswoman. Any disruptions for the freighters “will be minimal and can be managed with only minor re-routings,” Rodney said.
Cathay Pacific Airways (CAT), the Hong Kong-based airline, said it has 10 Boeing 747-8Fs in its fleet that are powered by (GEnx) engines. As a precautionary measure, it’s standard operating procedure for 747-8F freighters is to avoid flying into thunderstorms, (CAT) said in an e-mailed response.
“This looks a lot like a classic teething issue,” Richard Aboulafia, an Aerospace analyst at Fairfax, Virginia-based consultant, Teal Group, said by e-mail. “It’s probably isolated to just the engine, and even then just one of the two engines available as options. It’s also probably easily fixed with a software tweak, rather than any kind of hardware modification.”
(GEC) said it’s making software modifications to eliminate the ice-buildup risk and expects them to be available in the first quarter. Marc Birtel, a Boeing (TBC) spokesman, said the engines’ design and maintenance practices, together with the new instructions, allow for the jets’ “continued safe operation.” “The (FAA) has been working closely with Boeing and (GEc) to monitor and understand these events as the companies develop a permanent solution,” the (FAA) said. It didn’t give a specific time for issuing the (AD) on the planes, which only covers USA carriers.
Both the 787 and 747-8 have had bumpy debuts. The 747-8 was two years late in starting service in 2011, and slack demand forced Boeing to cut output. The 787, whose 2011 entry was 3 1/2 years late, was grounded for three months in January after meltdowns in the lithium-ion battery packs on two 787s.
There have been six cases since April of planes with (GEnx) engines temporarily losing thrust in high-altitude icing conditions, (GEC) said November 23. Five were with 747-8s and one was with a 787.
(JAL) will replace 787s on flights between Tokyo and Delhi with 777s until November 30, and will switch to 767s on its Tokyo to Singapore route.
Boeing (TBC) surpassed 1,000 orders for the 787 with its haul at the Dubai Air Show this month. (TBC) handed over 57 of the 4-engine 747-8s, through the end of last month, most of which are freighters.
“Airlines wouldn’t be too concerned about engines in terms of costs,” K Ajith, a Singapore-based analyst at (UOB) Kay Hian Pte. “There will be some of sort compensation for airlines. Despite the problems, the airplane is quite popular.”
To contact the reporters on this story: Tim Catts in New York at firstname.lastname@example.org; Alan Levin in Washington at email@example.com
To contact the editors responsible for this story: Ed Dufner at firstname.lastname@example.org; Bernard Kohn at email@example.com
(BAE) Systems will provide maintenance for Japan Airlines (JAL)/(JAS) for 3 years. (BAE) will provide repairs, spares and modifications for electronic systems on (JAL)/(JAS)’s 737-800s, 767s and 777s.
December 2013: Japan Airlines (JAL) may seem to be reclaiming something of its former glory by bringing back a second-daily Tokyo (NRT) to New York (JFK) service, which it last offered prior to its bankruptcy and deep restructure. But the route will have a different strategy (and implications) when resumed on March 30th 2014. The service will be on (JAL)'s relatively small 186-seat 787-8, not the 747-400s of past times. That represents a decrease in seat capacity, further aggravated by the service largely replacing American Airlines (AAL)'s recently-cancelled New York to Tokyo flight. The (JV) between (AAL) and (JAL) makes that switch relatively easy, coupled with the convenience of being able to alter market profiles with the 787.
Whereas previously 1 of (JAL)'s New York services continued to Sao Paulo, the re-introduced second daily service will have better connections to South America on partner airlines, not on (JAL)'s own metal. The 787 will overnight at New York, allowing for an early return the next day. (JAL) will have the 2nd earliest morning departure from (JFK) to Asia, allowing for more time in Tokyo with limited improved connections. This contrasts to (ANA)'s 2nd daily New York to Tokyo service, which leaves (JFK) in the evening and arrives in Tokyo even later, when there are limited connecting opportunities and ground transport options.
January 2014: Japan Airlines (JAL)/(JAS) reported net income of +JPY123.5 billion/+$1.21 billion for the 9 months to December 31, 2013, down -17.1% from +JPY140.6 billion reported for the same period
Vancouver International Airport (YVR), Canada ushered in the "Year of the Dreamliner" with Japan Airlines' announcement that it will begin Boeing 787 operations on its daily non-stop service between (YVR) and Tokyo's Narita Airport (NRT) beginning Monday, February 3, 2014. This inaugural will mark the 1st-ever scheduled arrival of a 787 to (YVR).
(JAL) will introduce the 787-8 Dreamliner to the (YVR) to (NRT) route using a phased approach, beginning with 1x-weekly on Mondays and expanding to daily flights by March 2014.
February 2014: (JAL) Japan Airlines will switch its daily London Heathrow to Tokyo services with 777-300ERs from Tokyo Narita to Tokyo Haneda beginning March 30. The "Japan Times" says (JAL) will use its 5 newly allotted international slots at Haneda airport to double its current daily flights to Singapore Changi and Bangkok Suvarnabhumi. It will also use late night and early morning slots to launch 7x-weekly between Haneda and Ho Chi Minh City. All new services are to start on March 30. Given Haneda's convenient location compared to that of Narita, (JAL)'s President, Yoshiharu Ueki, recently expressed his disappointment at the government's decision to award (JAL) only 5 Haneda slots in comparison to the eleven granted rival (ANA) - All Nippon Airways.
Japan Airlines has emerged as the most reliable carrier in the world, posting the best on-time performance. After collecting real-time flight status information of the top 200 airlines in the world, Flightstats.com came up with a ranking that puts the Japanese carrier at the top of the heap: of the 129,300 flights tracked in 2013, Japan Airlines posted an impressive 93% on-time departure rate and an 89% on-time arrival rate.
For the report, on-time performance for departures was defined as leaving within 15 minutes of the scheduled time, while arrivals had to come in within 14 minutes of the scheduled time to qualify.
To be considered in the report, published earlier this month, carriers must rank in the top 60 worldwide in terms of capacity and data tracking must be available on 90% of scheduled flights.
After Japan Airlines, Dutch airline (KLM), (ANA) (All Nippon Airways), Iberia (IBE) (Spain), and (SAS) (Scandinavian Airlines) posted the top 5 on-time performance stats.
Here are the top 10 performing international airlines, according to on-time performance:
Japan Airlines (JAL)
Delta Air Lines (DAL)
Air New Zealand (ANZ)
Korean Air Lines (KAL).
The regional winners:
North America: Alaska Airlines (ASA)
European Major Airline: (KLM)
Asia-Pacific Major Airline: Japan Airlines (JAL)/(JAS)
Middle East and Africa Major Airline: Gulf Air (GUL)
Latin America Major Airline: Copa Airlines (Panama) (COP)
Low-cost carrier: Thai AirAsia (THA).
March 2014: INCDT: A Japan Airlines (JAL)-operated Boeing 787 made an emergency landing at Honolulu Airport after oil pressure in its right engine dropped. En route to San Francisco from Tokyo, the 787 diverted to Honolulu, landing at 1343 local time Saturday with 160 passengers on board. No one was injured in he incident. “We are investigating the cause of the drop in oil pressure,” the spokesman said. The 787 Dreamliner is still parked in Hawaii, he added.
Japan Airlines (JAL) and Russia’s (S7) Airlines (SBR) have agreed to a code share that will see (JAL) add its code to (S7) (SBR) flights on 12 new destinations in Russia from March 19.
These include routes between Moscow Domodedovo and Russian domestic destinations including Saint Petersburg and Sochi. With the move, (JAL) has extended its reach into what were previously considered marginal markets across the central Asian/Russian region.
Domodedovo-based (S7) Airlines (SBR) flies to 45 regional destinations across Russia, with connections to European, Asian and Middle East destinations in 20 countries.
This move positions (JAL) as an important player on Japan to Central Asian routes. This is underlined by the relative lack of code share connections with Russian airlines by Japanese competitors, including All Nippon Airways (ANA).
Other significant Asian players (such as Korean Air (KAL), China Airlines (CHI) and Asiana Airlines (AAR)) have already established similar routings and code shares with airlines including Aeroflot (ARO), Transaero (TRX), and Rossiya (SDM).
However, mining, natural resources extraction and (O&G) supply systems are all driving traffic across the borders between Asia and Russia/Eastern Europe. This has seen business expanding rapidly and the need for extra connectivity, according to the European Union (EU). “Central Asia has significant development and business potential based on availability of energy, natural resources and work force,” it said in a report on the region. However, the (EU) cautions over “major challenges linked to the heritage of a centrally planned system, legal and institutional reforms [and] limited regional integration” have meant that investing directly in the region sometimes gave pause to Japanese carriers looking at new routes. As a result, many operators (like (JAL)) are playing safe with a “kind of extended local, or extended regional customer market,” as Air Astana (AKZ) President Peter Foster described the region’s current networks. However, given a potential market of millions of new wealthy travelers, many looking for Asian tourism destinations and connections, this Russia to Asia trend looks increasingly likely to continue.
Japan Airlines (JAL) and JetBlue Airways (JBL) have agreed to expand their code share agreement beginning March 30, increasing the code share routes between Boston and select USA cities and will introduce new code share flights between San Francisco and select USA cities giving (JAL) more USA coverage. (JAL) recently launched 2x-daily, Tokyo Narita to New York (JFK) service from March 30.
Japan Airlines (JAL) reached an agreement with Panasonic to install (JAL) "SKY" Wi-Fi on its international Boeing 767-300ERs, 777-200ERs and 787s operated on its SE Asia and other international routes.
April 2014: Japan Airlines (JAL)/(JAS) reported net income of +¥166.2 billion/+$1.62 billion for the financial year to March 31, 2014, down -5.4% from net income of +¥171.6 billion year-over-year.
(JAL)/(JAS) said the profit drop was due to “a severe operating environment,” with the weakness of the Japanese yen pushing costs (especially for fuel) higher, increasing competition in both domestic and international markets, and the residual effects of the global economic downturn continuing to exert downward pressure on its domestic business.
Operating revenue for the 12 months was up +5.7% to ¥1.31 trillion year-over-year, but operating expenses increased +9.5% to ¥1.14 trillion, resulting in a -14.6% decline in operating income to ¥166.7 billion.
The number of passengers carried during the year was up +3.9% to nearly 39 million from 37.5 million in the previous financial year. Load factor was 71% LF, up +0.7 point. Traffic (RPK)s were 59.1 billion, up +3.5%, and capacity (ASK)s were 83.3 billion, up +2.6% year-over-year.
The (JAL) Group said it “faces intensifying competition at the Tokyo metropolitan airports as a result of the dramatic increase of international flight slots at Haneda Airport” and the fact that “fewer-than-expected” of those slots were allocated to (JAL)/(JAS).
In addition, (JAL)/(JAS) said “the escalation of fuel costs due to the weak yen may prevail and competition may intensify in both international and domestic market.”
(JAL)/(JAS) president Yoshiharu Ueki said the airline group would not be revising its operating income forecast of ¥140 billion for the financial year to March 31, 2015 cited in its "Rolling Plan 2014" that was announced last month. This is a -¥26.7 billion decrease compared to the financial year ended March 31, 2014 and based on an expected +¥67.5 billion year-on-year increase in operating expenses.
Ueki said: “We will continue to do our best to achieve the targets we set for fiscal year 2014 and prepare ourselves to realize growth from fiscal year 2015.”
Japan Airlines (JAL) and Korean Air (KAL) have expanded their code share agreement to the N Asian region, despite being key players in 2 different alliances. From April 22, Oneworld (ONW) Alliance member (JAL) and SkyTeam (STM) Alliance’s (KAL) will add around +8 more destinations from the original Seoul to Komatsu, Niigata, and Sapporo routes, and also include flights from Korea’s Busan and Jeju airports.
The new destinations (now available as (JAL)-flagged routes) will be from Aomori, Akita, Haneda, Oita, and Okayama to Incheon International.
In addition, (KAL) flights from Busan to Fukuoka and Sapporo, and from Jeju to Nagoya, will be part of the code share agreement.
Japan Airlines (JAL), which recently expanded its code share agreement with Korean Air (KAL), has now signed an 8-route agreement with Bangkok Airways (PGB) as it pushes further into SE Asia. (PGB) operates some 170 flights per day from Bangkok’s Suvarnabhumi International Airport to a wide range of Thai beach destinations, as well as Myanmar, Laos, Cambodia, Malaysia, Singapore, and the Maldives. (PGB) uses a mix of short- and medium-haul ATR 72-500s, Airbus A319s and A320s.
The 2 carriers have an existing code share agreement on 5 destinations including Phuket, Chiang Mai, Ko Samui, Mumbai, and Male. The new agreement will be expanded to include new routes to Yangon, Nai Pyi Taw, and Mandalay (in Myanmar), Phnom Penh and Siem Reap in Cambodia), and Vientiane and Luang Prabang in Laos.
(JAL) recently boosted connections to Bangkok with a 2x-daily Boeing 767 service, which will “ensure smooth connectivity” for the new code shares into the lucrative SE Asian centers of tourism, an expanding sector of the Japanese market currently served by low-cost carriers Peach Aviation (PCA), AirAsia X (ASX), and Vanilla Air (WAJ).
Japan Airlines (JAL)/(JAS) (which is revamping in-flight products and services in all classes across all domestic and international operations as part of its "New Sky" project) will launch its 1st domestic service featuring the "JAL SKY NEXT" configuration in late May. The project (which will launch on flights between Tokyo Haneda and Fukuoka from May 28) includes an updated cabin interior with leather seats and (LED) lighting in all classes and a new in-flight Internet service, "JAL SKY Wi-Fi." The 1st airplane to be retrofitted with the "JAL SKY NEXT" interior will be a Boeing 777-200 operating on the route 3x-daily.
According to (JAL)/(JAS), 77 airplanes are scheduled to be revamped sequentially and introduced on domestic routes.
(JAL) Express ((IATA) Code: JC, based at Osaka Itami) (JEX) is to be dissolved following the recent announcement of a merger with parent, (JAL)/(JAS) - Japan Airlines (JL, Tokyo Haneda). In a press statement, (JAL)/(JAS) said the decision to absorb its domestic subsidiary was taken at a recent group board meeting.
(JAL)/(JAS) says the move will help stabilize its domestic business by better matching capacity to demand. (JAL) Express (JEX) operates 41 737-800s. The merger is set for completion on October 1 of this year.
Japan Airlines (JAL)/(JAS) will start a trial of Gogo’s new dual-antennae product, "2Ku," which the supplier says will give airlines fast, reliable and affordable broadband worldwide. "2Ku," which is expected to enter commercial service in 2015, uses two low-profile antennae to increase in-flight data bandwidth and coverage. These are the same antennae as Gogo uses for its Ground to Orbit (GTO) technology, but instead of having a return link to the ground, 2Ku will upload and download data from a range of Ku-band satellites, giving global coverage.
Launching 2Ku at the Aircraft Interiors Expo in Hamburg, Gogo President & (CEO), Michael Small said trials performed last September in the USA showed a download rate in excess of >70 Mbps, enough to deliver live TV broadcasts. This capacity is expected to increase to >100 Mbps, as further satellites are launched.
This marks a drastic improvement from the 9.8 Mbps peak of Gogo’s (ATG)-4 service, which it launched last year. Within the North American market, (GTO) will be able to deliver a maximum of 70 Mbps, but 2Ku extends this bandwidth to a global capability. “It is cheaper, 2x- as spectrally efficient and will cut costs in half, bringing much more affordable bandwidth to the sky. In addition, it has a low profile [4.5 inch-tall] antennae, so there will be lower fuel burn,” Small said.
As 2Ku can tap into “many dozens” of existing Ku satellites, Small said it will have far greater coverage, particularly in tropical regions, where satellite signals typically degrade due to high skew angles. “We think this will unleash a global solution for in-flight connectivity for airlines around the world,” Small said.
(JAL)/(JAS) is expected to trial the system next year, although Small declined to specify the airplane type to be equipped and whether it will involve new or in-service models.
May 2014: Gogo announced a new Supplemental Type Certificate (STC) from the (FAA) and certification from the Japanese Civil Aviation Bureau (JCAB) to install its Ku-satellite based connectivity service on Japan Airlines (JAL)'s 777-300 airplanes.
The 777-300 is the 2nd airplane type in (JAL)'s fleet that Gogo has received (FAA) and (JCAB) approval for. The announcement of the 2nd airplane comes following an agreement signed by (JAL) with Gogo in October 2013 to install in-flight Wi-fi service across its entire commercial fleet.
SEE VIDEO OF (JAL) 777-300 FIRST SUITE TOKYO TO NEW YORK:
June 2014: Gogo has received certification from the (FAA) and the Japanese Civil Aviation Bureau (JCAB) to begin installing a Ku-band satellite-based, in-flight connectivity service across Japanese Airlines' (JAL)/(JAS) fleet of Boeing 737-800s. This is the 4th and final certification Gogo has received for (JAL)/(JAS)'s connectivity service, enabling the connected airplane company to reply its solution across (JAL)/(JAS)'s entire commercial airplane fleet.
JAL signed an agreement with Gogo in October 2013 to add the service across its fleet of 77 total commercial airplanes. Along with the connectivity service, (JAL)/(JAS) is also adding Gogo Vision, a wireless In-Flight Entertainment (IFE) service to its fleet.
July 2014: Japan Airlines (JAL)/(JAS) has reached an agreement with Amadeus for its full Altéa Suite of Information Technology (IT) solutions.
SEE VIDEO JAPAN AIRLINES 777-300ER FIRST CLASS TOKYO - LONDON:
August 2014: The latest round of route announcements by Japan’s major airlines includes the notable return of a domestic trunk service that was previously squeezed out by competition from high-speed rail.
All Nippon Airways (ANA) and Japan Airlines (JAL)/(JAS) are both boosting flights from Tokyo’s Haneda Airport, although (JAL)/(JAS) also cut flights from elsewhere in its network. Most of the changes will be effective from October 26, and will apply to their schedules for the second half of the fiscal year.
(ANA) is adding a new route from Tokyo Haneda to Nagoya’s Chubu Centrair Airport using Boeing 737-800s. (ANA) last operated this route in 1982, although at that time, it used Komaki Airport in Nagoya since Centrair had not yet been built.
The flight was suspended due to the challenge of the Shinkansen bullet trains, which can travel between Nagoya and Tokyo in 1 hour 40 minutes. Many relatively short domestic routes have come under pressure from the Shinkansen trains, as they offer extremely high frequency on trunk lines such as Tokyo to Nagoya to Osaka.
The reason the flights are being resumed on this route is not to compete with the trains for commuter traffic, but to offer convenient connections to international flights at Haneda. Thanks to recent expansion at Haneda, (ANA) has increased its international services at what used to be a domestic airport. (ANA) already operates flights from Nagoya to Tokyo Narita Airport, which is still the major international airport in Tokyo.
As well as the new Nagoya service, (ANA) has added three more daily frequencies to existing domestic routes from Haneda. It has also added three daily frequencies to routes from Fukuoka. On the international side, (ANA) is changing airplane types on a number of routes, and also cut back its flights from Narita to Chengdu, China from daily to 4x-weekly.
(JAL)/(JAS), meanwhile, added 2x-daily to domestic routes from Haneda. It also cut 4x-daily from its Fukuoka network.
Another notable change is its suspension of flights between Narita and Okinawa’s Naha Airport. This is one of the routes currently served by both (JAL)/(JAS) and its low-cost joint venture (JV) Jetstar Japan (JJP). Code share flights on the Jetstar Japan (JJP) service will still be offered to passengers from Naha connecting to (JAL) international flights at Narita.
(JAL)/(JAS) will continue to offer multiple daily flights between Haneda and Naha, operated by mainline airplanes as well as its (JAL) Express (JEX) and Japan Transocean Air (SWL) subsidiaries.
Japan Airlines (JAL)/(JAS) has ordered both Embraer E-Jets and the Mitsubishi Regional Jet (MRJ) as it prepares to revitalize its J-AIR regional subsidiary’s fleet.
(JAL)/(JAS) announced it had signed a firm order with Embraer (EMB) for 15 E170s and E190s, worth $677 million at list prices; the split between the two models was not revealed. It also placed options for a further 12 E-Jet family airplanes. Seating capacity of the E170 is normally 78Y, while the E190 typically carries 104Y passengers.
The E-Jets are powered by (GE) Aviation (GEC)’s (CF34) engines.
Osaka-based, J-AIR already has 15 E170s, which have been “highly well received” by passengers and nine Bombardier CRJ200s. The new E-Jets will begin delivery from 2015 as the CRJ200s are retired and will be used to expand the regional route network.
(JAL)/(JAS) said “other propeller jets” would also be retired from 2015. The Group operates Bombardier Dash 8 Q100s, Dash 8 Q300s and Dash 8 Q400s plus the Saab 340Bs in its Japan Air Commuter subsidiary.
Simultaneously, (JAL)/(JAS) announced it had signed a letter of intent (LOI) with Mitsubishi for 32 MRJs. Again, the split between the 78Y-seat MRJ70 and the 92Y-seat MRJ90 was not revealed.
The MRJs will start to arrive from 2021 and (JAL)/(JAS) “intends to use it as the choice replacement for all other current regional jets including the E170 by 2021,” becoming J-AIR’s next-generation regional jet on domestic routes.
(JAL)/(JAS) added, “As a network carrier that also operates regional jet airplanes, the (JAL) Group will not only be purchasing the MRJ, but also aims to provide know-how from the operator’s perspective in the development of this airplane. We hope to support the birth of a Japanese passenger jet which we can boast about to the world, and thereby contribute to the development of the Japanese economy.”
September 2014: Effective from October 26, the 787 Dreamliner will replace the existing 767 on one of (JAL)'s daily services to the Chinese capital.
Flight JL021 departs Haneda Airport daily at 9:10 am and arrives in Beijing at 12:20 am. The return JL022 service leaves Beijing Capital International Airport at 4:40 pm and lands back in Tokyo at 9:00 pm.
The deployment of the 787 on the Tokyo Narita to Delhi service will begin on December 1. The 787 Dreamliner will replace the 777 that currently services flights JL749 and JL740.
The away leg sees flight JL749 depart Narita International Airport at 11:35 am and arrive in Delhi's Indira Gandhi International Airport at 6:20 pm. Following a short layover, flight JK740 takes to the skies again at 8:20 pm, before touching back down in Tokyo at 7:10 am the following day.
(JAL) configures its fuel-efficient 787s with a two-class layout, offering 42C seats in business, and 144Y seats in economy.
Japan Airlines (JAL) has discovered that a cyber attack may have led to the theft of up to 750,000 customer details from its computer systems. (JAL) said that “approximately 110,000 pieces of customer data may have been compromised,” although this number could increase to 750,000 if the outbound data was sent in a compressed format. The data pertains to (JAL) Mileage Bank members.
(JAL) has found no indication that passwords or credit card numbers were stolen as a result of the computer security breach. However, the data could have included mileage membership numbers, enrollment dates, names, dates of birth, workplaces, email addresses, and home and work addresses and phone numbers.
(JAL) said it has taken steps to block further unauthorized access to its database and has launched a full investigation.
October 2014: News Item A-1: Japan Airlines (JAL) and American Airlines (AAL) expanded code sharing from October 26. In addition to (JAL)’s code share flights on American to Brazil via New York and Dallas/Fort Worth, it will add its (JAL) code on Los Angeles to São Paulo.
News Item A-2: Canadian flight training specialist (CAE) has signed a deal with Japan Airlines (JAL)/(JAS) to train its pilots (FC) in Tokyo, giving the company presence in a new and potentially fruitful Asia-Pacific market.
Pending regulatory approval, (JAL)/(JAS) will move its entire flight crew (FC)-training operation to a facility jointly owned by (JAL)/(JAS) and (CAE) in April 2015. Initially, the new operation will be based at (JAL)’s own Tokyo training facility.
Since its bankruptcy four years ago, (JAL) has taken steps to minimize all its non-core activities (cargo, catering, and now flight training) to minimize operational overhead.
The 12-flight simulator center will provide ab initio and multi-crew pilot license training, as well as recurrent-type training to other airlines and (JAL)/(JAS) employees.
(CAE) said the new center will offer training services to third-party customers training with (CAE) in NE Asia outside China. The company’s training center at Zhuhai was set up as another joint venture (JV) with China Southern Airlines (GUN) in 2002.
The new agreement will offer (CAE) a convenient springboard into the expanding Japanese market, which has seen pilot (FC) shortages affect airline operations during the past year.
The new center will complement (CAE) operations in Seoul, Hong Kong, and Zhuhai to help address the boom in Northeast Asian pilot (FC) and aircrew demand.
(CAE) also has training centers in Singapore, Malaysia, the Philippines, India, and Australia.
November 2014: Japan Airlines (JAL)/(JAS) announced that it will introduce fully revamped Boeing 767-300ER airplanes on its domestic Tokyo (Haneda) to Osaka (Itami) route starting December 8, 2014. The retrofitted 767s have also been configured to offer First (F) Class in addition to Business (J) Class and Economy (Y) Class, which both are fitted with new seats.
SEE ATTACHED - - "JAS-767-300ER CONFIGURATION - 2014-11."
Under the theme of "Embrace new Challenges", (JAL)/(JAS) is striving to introduce more innovative products and services to its customers.
December 2014: News Item A-1: Japan Airlines (JAL) and SriLankan Airlines (LNK) have begun code sharing. Both are Oneworld (ONW) Alliance members.
News Item A-2: 767-346ER (35815, JA618J), purchased off lease.
January 2015: News Item A-1: Japan Airlines (JAL)/(JAS) reported net income of +JPY119.6 billion/+$1 billion for the 9 months ended December 31, 2014, down -3.1% from +JPY123.5 billion in the same period in the previous financial year.
(JAL)/(JAS) said that, although the Japanese economy was recovering slowly, consumer spending was weaker and the Japanese yen was sharply down against the dollar.
Operating revenues for the period were up +3.3% year-on-year, breaking through the JPY1 trillion mark, with operating expenses up +3.7% to JPY884.1 billion. Operating income for the period was up +0.5% to +JPY138.2 billion.
The number of passengers carried during the 9-month period was up +0.8% to 29.8 million year-over-year. (RPK)s were up +1.56% to 45.4 billion and (ASK)s were up marginally to 63.4 billion from 63.3 billion during the previous nine-month period. Revenue passenger load factor was up +0.9% points to 71.5% LF.
(JAL)/(JAS) said that, largely as a result of the fall in fuel prices, it was revising its full-year net income forecast upwards to +JPY139 billion. The forecast at the end of the previous financial year was +JPY115 billion, and this was revised up to +JPY135 billion at the end of the first half. Operating revenues have been revised down from JPY1.35 trillion at the end of the previous financial year to JPY1.342 trillion. This is, however, an improvement on the interim first-half forecast of JPY1.34 trillion.
(JAL)/(JAS) said: “Consolidated revenue for the full fiscal year is expected to increase by +2 billion yen from the previous forecast, while consolidated operating expenses are expected to decline by -7 billion yen owing to falling aviation fuel prices and rigorous cost reduction initiatives continuing into the second half of the fiscal year, and so on. Consolidated operating profit, reflecting the aforementioned factors is seen to increase by +9 billion yen from the previous forecast.”
The revised forecast, (JAL)/(JAS) said, was “due to an expected 9 billion yen increase in full-year consolidated ordinary profit based on an increase in full-year consolidated operating profit and an expected +4 billion yen increase in full-year consolidated net income.”
News Item A-2: Japan Airlines (JAL)/(JAS) has finalized an order for 32 Mitsubishi Regional Jets (MRJs), which will replace some of its regional fleet from 2021.
Last August, (JAL)/(JAS) signed a letter of intent (LOI) with Mitsubishi (MRJ) for 32 MRJs, although the split between the 78-seat MRJ70 and the 92-seat MRJ90 was not disclosed.
In a statement issued January 28th, (JAL)/(JAS) and Mitsubishi (MRJ) said the (LOI) was converted into a firm order on January 28. Deliveries will begin in 2021, although the split between variants remains unconfirmed.
The 32 MRJs will be operated by (JAL) regional subsidiary, J-AIR on domestic routes. (JAL) said the (MRJ) will form a key part of its regional fleet, as it pursues its “steady network expansion.” The Japanese carrier added that it selected the (MRJ) based on its performance and in-service operational support.
To date, the (MRJ) program has accumulated 223 firm orders, 160 options and 24 purchase rights, including this latest order from (JAL).
At the same time as announcing the (MRJ) letter of intent (LOI) last August, (JAL) ordered 15 E170s and E190s, plus 12 options. Osaka-based J-AIR already has 15 E170s and nine Bombardier CRJ200s. The new E-Jets will arrive from 2015, as the CRJ200s are retired.
News Item A-3: 767-346ER (40371, JA659J), re-painted in "Suica Penguin Jet" colors.
Boeing (TBC) delivered a new 787-8 Dreamliner (34853, JA839J) to Japan Airlines (JAL)/(JAS).
March 2015: News Item A-3: Japan Airlines (JAL) has resumed non-stop flights between Osaka Kansai (KIX) and Los Angeles (LAX). On March 20th, the Japanese Oneworld (ONW) Alliance member started daily flights on the 9,218 km route, using its 787-8s. No other carrier operates this airport pair. This is (JAL)’s second USA service from Osaka, as it already operates daily flights to Honolulu in Hawaii. It is also Japan Airlines (JAL)’s second route to Los Angeles, complementing the airline’s existing daily service from Tokyo Narita.
News Item A-2: Japan Airlines (JAL)/(JAS) is expanding its In-Flight Connectivity (IFC) services on both international and domestic routes. Beginning March 3, (JAL)/(JAS) is offering its (JAL) Sky Wi-Fi services on more long-haul routes in Europe, North America and Asia aboard its Boeing 767-300ERs and 787-8 airplanes.
Additionally, beginning in April, (JAL)/(JAS) will provide customers with the additional movie and TV In-Flight Entertainment (IFE) content available on the (JAL)/(JAS)’s Boeing 787s. (JAL)/(JAS) is also bolstering domestic offerings as well, increasing the Wi-Fi video service to 10 programs that are available through Personal Electronic Devices (PEDs).
April 2015: This month, Japan raised the age limit for piloting a commercial plane to 67, the latest effort in Asia to get to grips with a drastic pilot (FC) shortage.
The move looks set to make pilots (FC) working for Japanese airlines among the oldest in the world.
Until now, pilots (FC) had to retire their wings at 65. Under Japan's new rules, pilots (FC) can carry on flying until their 68th birthday. "We are aiming to ease a shortage while still ensuring safety," a transport ministry official said.
Japan has 5,900 airline pilots (FC), including 500 aged 60 or over, according to the Ministry.
But surging demand from passengers, especially in the booming budget sector, has created a shortage that last year forced airlines to cancel thousands of flights.
Demographics are expected to exacerbate the problem in the 2030s, when a raft of Japan's captains (now in their 40s) hit retirement age.
"The training is so expensive and a lot of (airlines) are paying retirement to pilots (FC) as well. If you start flying at 30 years old, you only have them for 35 years," said Ronald Bishop, head of the aviation program at Australia's Central Queensland University.
"All that money they spent making the pilots (FC) really safe and making sure they're up to speed, and they get the proper training, extending it by a few years helps them get their money back."
Australian aviation expert, Neil Hansford said globally there was a lack of skilled pilots (FC) and the use of older workers was "becoming pretty standardised, except for some of the unionised countries."
"65 is very common now," Hansford added.
Greg Waldron, the Asia Managing Editor of Singapore-based FlightGlobal, a specialist online news and information website, said the high cost of training to become a pilot (FC) put off many potential entrants.
"The industry is in a bit of tough patch now in terms of bringing in qualified, good individuals to become pilots (FC)," he said, adding that the shortage is particularly acute in the Asia-Pacific region.
"In countries like the USA and Australia and even Europe, there is a lot of exposure to aviation," Waldron said. "It is relatively cheap in countries like Australia or the USA to get a basic pilot (FC)'s licence. It's just a general aviation culture. (But) in Asia Pacific, you don't really have that type of activity going on as much."
In Japan, a country where the over-65s make up a quarter of the population, the government says it will limit flying time for older pilots (FC) to 80% of the normal maximum, meaning 80 hours per month or 216 hours over three months.
The co-pilot (FC) of a 65-plus airplane commander must be aged 59 or younger, and those who opt to continue beyond their 65th birthday will have to undergo epilepsy tests.
Waldron said older pilots (FC) did not pose a safety risk. "The key thing is you want these guys to be well-trained, you want them to know how to react when there is an emergency. So if you have an older, more experienced pilot (FC), he might be able to react to things differently compared to someone with less experience," he said.
He added it was also important to have consistent, updated training.
"As long as they pass the tests in the simulators, as long as they keep performing and prove that they know what they are doing in the plane, I think the retirement age can be pushed up a bit."
Japan raised the age limit for a pilot (FC) in command from 62 to 64 in 2004, a standard set by the International Civil Aviation Organization (ICAO) and followed by many countries.
May 2015: 777-246 (27656, JA771J), purchased off lease and 787-8 (34854, JA-842J) delivery.
June 2015: News Item A-1: Japan Airlines (JAL) and Jetstar (IMU) are to code share between (JAL) Premium Economy (PY) Class fares and Jetstar (IMU) Business (C) Class on all (JAL) code share flights operated by (IMU). (JAL) will also start a code share route on (IMU)'s Narita - Cairns service from August.
News Item A-2: Japan Airlines (JAL)(JAS) is due to begin operating its first Boeing 787-9 (35422, JA861J) this month, as (JAL)/(JAS) and its rival All Nippon Airways (ANA) continue to build their 787 fleets.
July 2015: News Item A-1: The Japan Airlines (JAL) Group achieved a net profit of +¥32.6 billion/+$262.1 million) for its fiscal 1st quarter, more than doubled from a net income of +¥14.7 billion for the previous year. (JAL)/(JAS) cited strong international demand for the increased profit.
(JAL)/(JAS) said demand from inbound travelers to Japan remained high, particularly on Chinese and SE Asian routes. Outbound premium demand was steady. The depreciation of the Japanese yen is providing cost headwinds for (JAL)/(JAS), but it is also helping increase foreign tourist numbers.
With (JAL)/(JAS)’s international capacity rising +2.4% in the quarter, traffic for this period was up nearly +9%. This raised international load factor +4.6 points to 77.9% LF, with revenues from this sector up +2.1%.
In the domestic market, (JAL)/(JAS) cut capacity by -1% year-on-year, with traffic remaining essentially flat. This raised its domestic load factor by +0.7 point to 63.1% LF, and revenue by +3.9%.
Cargo volumes strengthened in both domestic and international and markets. (JAL)/(JAS) also cited a “moderate” growth rate in the Japanese economy as another positive factor, along with consumer spending showing signs of improvement.
(JAL)/(JAS) has left its full-year profit forecast unchanged since its last update in April. It expects a +¥144 billion net profit, although this would be down slightly from the +¥149 billion it earned in the previous fiscal year.
News Item A-2: Japan Airlines (JAL)/(JAS) on July 1st announced the launch of "JAL Countdown" app for Android WearTM (**). The (JAL)/(JAS) Countdown app allows users to track real-time domestic flight status and proceed through boarding gates more conveniently and smoothly. This app will be available from Google PlayTM (***) starting July 1, 2015, and will deliver various information to airline devices in a timely manner.
See attached - - "JAL-2015-07 - Andrid WearTM Countdown app.jpg).
(**): An AndroidTM platform for wearable devices provided by GoogleTM
(***): A service provided by Google to deliver digital contents (apps, movies, music, books) to Android devices.
Customers will be able to track real-time flight status, check details on boarding gates, boarding times, and receive alerts counting down to the flight's departure (from a day ahead down to the hours, minutes and beyond).
The app also supports 2-dimensional bar-code "touch and go" systems so that customers can move through security checkpoints or enter boarding gates and lounges using Android Wear.
(JAL)/(JAS) will also launch an original Watch Face from (JAL), featuring aircraft motifs. The clock's 2nd hand is designed with an airplane, counting down to the flight so that customers can shop and dine at ease before boarding.
(JAL)/(JAS) will continue to embrace new challenges of enhancing services for its customers to make boarding faster, smoother, and more convenient.
News Item A-3: Boeing (TBC) and the Japanese aviation industry stakeholders have charted a course to develop sustainable aviation bio-fuel for flights during the 2020 Olympic & Para-Olympic Games in Tokyo, when millions of people are expected to visit Japan. The Initiatives for Next Generation Aviation Fuels (INAF) (a consortium of 46 organizations including Boeing (TBC), All Nippon Airways (ANA), Japan Airlines (JAL)/(JSA), Nippon Cargo Airlines (NCA), Japan's government, and the University of Tokyo) laid out a 5-year road map to develop bio-fuel by 2020 as a way to reduce aviation’s environmental footprint. Using sustainably produced bio-fuel reduces life cycle carbon dioxide emissions by -50% to -80% compared to conventional petroleum fuel, according to the USA Department of Energy.
August 2015: News Item A-1: "Top 10 Premium Economy Class 2015" by AIRWAYS publication placed Japan Airlines International (JAL) in 10th place.
See attached "JAL-2015-08 - Top 10 Premium Economy Class 2015- 10th."
November 2015: News Item A-1: "Japan Airlines (1H) Net Profit Up +30%."
Japan Airlines (JAL)/(JAS) reported a net profit of +¥103.3 billion/+$856.9 million for the six months through September 30, an increase of almost +30% from the prior year.
News Item A-2: (JAL)/(JAS)’s return to Dallas/Fort Worth from Tokyo Narita on November 30 is the last piece of route development for some time, with no new routes currently planned.
December 2015: News Item A-1: See attached: "JAL-Domestic/Regional/Global Network-2015-12.jpg."
News Item A-2: Japan Airlines International (JAL) has seen demand drop dramatically on its routes to Paris in the wake of November’s terrorist attacks, prompting (JAL) to pull one of its flights from the market. (JAL) will suspend its daily Boeing 787-8 service from Tokyo Narita International Airport to Paris Charles de Gaulle International Airport (CDG) between January 12 to February 29, except on a handful of selected days. (JAL) will continue to operate its other Paris service.
January 2016: INCDT: On January 29, 2016 1 of the 2 engines on a Japan Airlines (JAL) 787 shut down in mid-air and could not be restarted. The 787 flying from Vancouver BC, Canada with 166 people on board, was about 90 miles from Tokyo's Narita Airport, when the right-hand engine failed. The pilots (FC) landed the the 787 safely on 1 engine about half an hour later.
February 2016: (JAL) - Japan Airlines ((IATA) Code: JL, based at Tokyo Haneda) has suspended its daily, Tokyo Narita - Paris (CDG) service until the end of the month citing a downturn in demand brought on by November's terrorist attacks in Paris.
(JAL) said the service, which was suspended on January 12, may resume from February 29 pending an increase in demand.
(JAL) still serves the Parisian capital albeit from its Tokyo Haneda hub.
April 2016: News Item A-1: The Federal Aviation Administration (FAA) released an Airworthiness Directive (AD) on April 22nd ordering certain airlines to urgently modify engines on Boeing 787 Dreamliners, due to an icing problem that can cause a specific model of (GE) engine to shut down in flight. The problem affects 176 787 Dreamliners at 29 airlines (about 44% of the worldwide 787 fleet).
See attached - - "JAL-2016-04 - JAL Engine AD-A/B/C.jpg."
The (AD) follows a January 29, 2016 incident in which 1 of the 2 engines on a Japan Airlines (JAL) 787 shut down in mid-air and could not be restarted. The 787 flying from Vancouver BC, Canada with 166 people on board, was about 90 miles from Tokyo's Narita Airport, when the right-hand engine failed. The pilots (FC) landed the the 787 safely on one engine about half an hour later.
Affected airlines have until the 1st week of October 2016 to complete the rework on all their affected 787s. In the meantime, pilots (FC) are required to follow a new ice-removal procedure in flight.
777-246ER (32894, JA707J) purchased off lease.
May 2016: J-Air Corporation (J-AIR), the regional offshoot of Japan Airlines (JAL)/(JAS), has introduced its Embraer (EMB) E190 jet in Japan. The inaugural revenue flight took place May 9 between Osaka-Itami Airport and Kagoshima.
787-8 (38136, JA844J) and 787-9 (34858, JA864J) deliveries.
June 2016: News Item A-1: "(JAL) will Keep Growth in Check, Onishi Says" by (ATW) Adrian Schofield, June 3, 2016.
Japan Airlines (JAL) will continue to follow a conservative growth strategy, even after expansion restrictions are removed by regulators, according to Chairman Masaru Onishi.
(JAL)’s capacity constraint in recent years has been a factor in its dramatic return to profitability, Onishi said at the (IATA) (AGM) in Dublin. (JAL) recorded a net profit of +¥174.4 billion/+$1.6 billion last year, and an operating margin of 15.7%. Investing in product quality, rather than adding scale, has been an important part of the airline’s new philosophy, Onishi said.
The government set growth limits on (JAL) after its exited bankruptcy protection in 2011, but these are expected to be lifted at the start of its next financial year in March 2017. However, (JAL) has not been targeting growth and will not be ramping up expansion significantly, Onishi said.
(JAL) is focusing primarily on business and premium traffic, he said. Other Asian nations will provide more demand for high-end service as their populations become wealthier, but it could be another 5 to 10 years before such demand can support major expansion by (JAL).
(JAL) has been concentrating on improving service quality. It has done this partly by upgrading aircraft cabins, but improvements in this regard are reaching their limit, Onishi says. (JAL) is now looking at ways to upgrade the airport experience, where there is still “huge room for improvement.”
For example, (JAL) is examining how to reduce stress levels for travelers by investing in new Information Technology (IT) solutions that can help reduce queues. Japanese airlines face fierce competition from high-speed rail, where the passenger boarding experience is far less stressful, Onishi noted.
While it is not increasing capacity much, (JAL) is modernizing its fleet. (JAL) has been progressively introducing Boeing 787-8s, and has received 24 of its 25 orders. It also operates 3 787-9s, with a 4th having just been delivered and 16 more on order.
(JAL) has ordered 31 Airbus A350s for the long-term replacement of its Boeing 777s, but Onishi said more wide body orders may eventually be necessary. Because (JAL) already has enough A350 orders for an efficient fleet size, it can turn to either manufacturer for more orders, Onishi said.
In the narrow body fleet, (JAL) has plenty of time before it needs to replace its 737-800s. This fleet is still young enough that it can operate until around 2020. So (JAL) still has 3 to 4 years to study replacement options before making a decision, said Onishi.
News Item A-2: Japan Airlines (JAL) and Alaska Airlines (ASA) are to sign code share and frequent flier agreements for flights across Japan and the USA Pacific Northwest.
The new code share will take effect from the end of June, pending government approval, and will offer unified reservations and ticketing, integrated baggage handling, and cross-carrier mileage awards on both (JAL) and (ASA) flights.
(JAL) spokesperson Hideki Oshima said the new agreement would offer customers a broader range of routes and destinations, allow (JAL) to strengthen its presence throughout the Pacific Northwest, and offer increased travel options.
The code share will cover all Alaska's connecting flights out of (JAL)'s key North American destinations including Vancouver, San Francisco, Los Angeles, and San Diego.
(ASA) Executive VP & Chief Revenue Officer (CRO) Andrew Harrison said the move would likewise enable its passengers to take advantage of the connections and mileage awards from 600 daily flights on (JAL)'s broad domestic network.
Alaska Airlines (ASA) is one of the most rapidly growing carriers in North America, and already has >15 code share partners, including strategic northern hemisphere partners such as (KLM) Royal Dutch Airlines, Korean Air (KAL), Icelandair (ICE), China's Hainan Airlines (HNA), and USA-based Delta Air Lines (DAL).
(ASA) is in the process of securing regulatory approval for the acquisition of San Francisco-based Virgin America (VUS), which would position it as a major USA West Coast player.
767-346 (27311, JA8397) sold to Unical Aviation, and re-registered N571UA.
August 2016: 767-346 (27313, JA8399), assigned (N573UA), 767-346ER (33849, JA613J), purchased off leasing. 787-9 (38138, JA865J) delivery.
February 2017: 787-9 (34843, JA867A), delivery.
March 2017: News Item A-1: Japan Airlines (JAL) has resumed non-stop flights between Osaka Kansai (KIX) and Los Angeles (LAX). On March 20 (JAL) started daily flights on the 9,218 km route using its 787-8s. No other carrier operates this airport pair. This is (JAL)’s 2nd USA service from Osaka as it already operates daily flights to Honolulu in Hawaii. It is also (JAL)’s 2nd route to Los Angeles complementing (JAL)’s existing daily service from Tokyo Narita.
News Item A-2: "European Commission (EC) Re-imposes Cargo Cartel Penalties" by Alan Dron firstname.lastname@example.org, March 17, 2017.
The European Commission (EC) has reinstated fines totaling €776 million/$834 million on 11 airlines for operating a price-fixing cartel on air freight from 1999 to 2006. More legal hearings are likely, as at least 1 of the carriers immediately said it would appeal the decision.
The (EC) originally imposed the penalties in November 2010, but these were annulled by a decision of the European Union’s (EU) General Court in December 2015 on procedural grounds, which ruled there was a technical discrepancy in the prosecution. In a March 17 announcement, the (EC) said it had resolved the discrepancy and was re-imposing the financial penalties on 11 air cargo carriers: Air Canada (ACN), Air France (AFA)/(KLM), British Airways (BAB), Luxembourg-based Cargolux (CLX), Hong Kong flag carrier Cathay Pacific Airways (CAT), Japan Airlines (JAL)/(JSA), (LAN) Chile, Dutch cargo carrier Martinair (MTH), Australia's Qantas (QAN), (SAS) Scandinavian Airlines and Singapore Airlines (SIA).
The (EC) said that a 12th member of the cartel, Lufthansa (DLH) and its subsidiary Swiss International Air Lines (CSR), was spared from the financial penalties after it applied for immunity in 2005 and revealed details of the alleged arrangements between the airlines.
These were said to consist of collusion between the airlines at both bilateral and multilateral levels to fix the level of fuel and security surcharges on cargo. After the initial verdict, all the airlines except Qantas (QAN) appealed. The financial penalty thus became final for QAN). Millions of businesses depend on air cargo services, which carry >20% of all (EU) imports and nearly 30% of (EU) exports,” (EC) Commissioner Competition Policy Margrethe Vestager said. “Working together in a cartel rather than competing to offer better services to customers does not fly with the (EC). Today’s decision ensures that companies that were part of the air cargo cartel are sanctioned for their behavior.”
The (EU) can fine companies participating in cartels up to 10% of their revenue in the year preceding the adoption of a verdict. (SAS) immediately said it would appeal. “We strongly question the European Commission’s move to re-impose a decision that has already been annulled once by the [General Court],” (SAS) General Counsel Marie Wohlfahrt said. “Throughout the entire process, (SAS) has cooperated with the (EC) and, for >11 years, has argued against the (EC)’s perception that (SAS) Cargo had participated in a global cartel.”
Nevertheless, the fine would be recognized as a nonrecurring expense by (SAS) in its earnings for (2Q) 2016/2017. Air France (AFA) - (KLM), which will be fined €325 million if the penalties become final, said it would analyze the new decision and whether to appeal it again at the General Court. It added that the fines had been covered in its financial accounts since 2010.
April 2017: Japan Airlines (JAL) reported a net profit of +¥164.1 billion/+$1.5 billion for fiscal 2016 through March 31, down -6% compared to net profit of +¥174.4 billion in the previous year. Revenue was -3.6% lower, and costs were down -0.8%. International capacity increased +0.1%, while domestic capacity dropped -1.2%. The Japanese flag carrier expects another dip in profits for the current fiscal year.
July 2017: 787-9 (35424, JA869J) delivery.
September 2017: Newqs Item A-1: Japan Airlines (JAL) started its 2nd route between Japan and Australia on September 1, beginning daily flights from Tokyo Narita (NRT) to Melbourne (MEL). The 787-8-operated service becomes (JAL), the Oneworld (ONW) Alliance carrier’s 2nd route between the countries, joining its existing daily operation to Sydney from its biggest international hub.
With the addition of the Victorian state capital, (JAL) now flies to 31 overseas destinations from its 4th largest airport in terms of weekly seats. Qantas (QAN) will provide direct competition on the airport pair, with its existing daily operation.
News Item A-2: Hawaiian Airlines (HWI) and Japan Airlines (JAL) have signed a new partnership arrangement that includes extensive code sharing, lounge access and frequent flyer program reciprocity. The agreement, subject to government approval, takes effect March 25, 2018. As part of this comprehensive partnership, the 2 carriers said they also intend to establish a joint venture to enhance services to/from Japan and beyond to multiple Asian markets
October 2017: Japan Airlines (JAL) is looking to boost its access to the Mexican market through a new partnership with Aeromexico (AMX), which may also give (AMX) more Asian connections. The agreement is expected to begin in (JAL)’s 2018 fiscal year, which starts in April 2018. (JAL) does not have its own flights to Mexico, although Aeromexico (AMX) has a route from Mexico City to Tokyo Narita Airport that was increased to daily service in March.
November 2017: News Item A-1: Japan’s 2 major airlines have boosted their profit guidance for the fiscal year through March 31, in part because of strong performance on their international networks. (ANA) Holdings (ANA) is projecting a +¥132 billion/+$1.2 billion net profit for the full fiscal year. This is up by ¥7 billion from its earlier estimate, and ¥33 billion higher than its profit for the previous year.
The Japan Airlines (JAL/JSA) Group, meanwhile, forecasted a +¥121 billion net profit.
News Item A-2: Japan Airlines (JAL/(JAS)) intends to order more wide body airplanes to meet its growth objectives, although a decision about which type could be some way off. (JAL)/(JAS) is discussing its wide body needs, but has not yet reached any internal agreement, said Hideki Oshima, (JAL)/(JAS)’s Executive VP for International Relations & Alliances. An order probably would not be placed until sometime in 2018 or 2019.
December 2017: News Item A-1: The national carriers of Russia and Japan have signed a strategic cooperation agreement that they say will bring significant customer benefits and increase travel options between the 2 nations.
The Memo of Understanding (MOU) between Aeroflot (ARO) and Japan Airlines (JAL) will see them pursuing a variety of commercial opportunities. The 2 airlines noted there has been a steady increase in demand for flights between their 2 nations since they eased their visa requirements in January 2017.
An initial step to meet this demand will be a code share on international services between the 2 countries, as well as on domestic services in both nations. The code share’s 1st stage is scheduled to be implemented after fiscal year 2018.
Additionally, (JAL) and (ARO) will seek to develop their partnership in areas including frequent flyer programs and airport relocation. Ultimately, they will consider a joint business in the future. “As the only airline in Japan operating to Russia for >50 years, the launch of a forward-looking partnership with (ARO) demonstrates our strong commitment to this very important market,” (JAL) Executive VP Tadashi Fujita said. “As we jointly started the Tokyo to Moscow flight 50 years ago, this strategic cooperation of mutual benefits will offer both airlines’ customers more options and flexibility,” he added.
“[The] Japanese market is a long-standing and important 1 for (ARO),” (ARO)’s Deputy (CEO) Strategy & Alliances Giorgio Callegari said. “We believe that by expanding our partnership with (JAL) for both direct and transit traffic, we will be able to further develop this market by providing more opportunities for our passengers.”
(JAL) operates 4x-weekly flights to Moscow Domodedovo from Tokyo Narita using Boeing 787-8s. This rose to 7x-weekly during the peak July to October 2017 summer season.
(ARO), meanwhile, operates daily nonstop flights from Moscow Sheremetyevo to Tokyo Narita with Airbus A330-300s.
News Item A-2: (JAL) invests in "Boom" supersonic passenger aircraft.
Japan Airlines (JAL) has entered into a strategic partnership with Boom Technology, taking purchase options on 20 Boom supersonic passenger aircraft.
See image below:
"JAL-2017-12 Partnership - Boom Technology Supersonic Aircraft."
January 2018: Japan Airlines (JAL) has announced a transition in its senior leadership, which sees Yuji Akasaka appointed as (JAL)’s next President. Akasaka, whose current role is Managing Executive Officer for Engineering & Maintenance, will take over as President on April 1. He will also become a board member in June subject to shareholder and board approval at (JAL)’s general meeting. Akasaka joined (JAL) in 1987, and held a series of senior engineering roles.
March 2018: "Government, Local Municipalities Approve Tokyo Narita Third Runway" by Adrian Schofield, (ATW) Daily News, March 15, 2018.
Tokyo Narita Airport has taken an important step in its efforts to add a 3rd runway and extend operating hours, after gaining clearance for its plans from local authorities. The expansion was approved during a meeting between the Narita International Airport Corporation (NAA), the central government, the Chiba prefecture, and local municipalities, according to Japanese media reports.
The (NAA)'s latest expansion plans have been under discussion with local groups since at least 2016. Runway construction and potential expansion at Narita have been hugely controversial topics in previous years, and gaining approval from local government and communities is a key milestone.
Narita currently has 2 parallel runways, designated A and B. Runway A is 4,000 m long/2.5 miles, and runway B is 2,500 m. The (NAA)'s plan calls for construction of another parallel runway, designated runway C, by about 2028. This would be 3,500 m long. The airport also proposes extending Runway B to 3,500 m to allow it to handle larger aircraft.
The airport currently operates from 6 am to 11 pm, although aircraft can land until midnight in certain circumstances. The proposed changes would extend operating hours to 5 am to 12.30 am.
Expansion at Narita is needed because the airport is increasingly congested during peak hours, and boosting its capacity will help it compete against connecting hubs in other Asian cities.
The Japanese government has ambitious plans to boost inbound arrivals to Japan by 2020, when the "Olympics" are due to be held in Tokyo. The Narita runway construction is unlikely to help with the 2020 goal, although another tourism growth target has been set for 2030. Short-term airport measures are also underway, including easing airspace restrictions at Tokyo Haneda Airport, and building high-speed runway exits at Narita.
April 2018: News Item A-1: The Japan Airlines Group’s net profit dropped -17.5% in the fiscal year ending March 31, although it saw a +2.5% rise in its operating profit for the same period.
Despite the decline, (JAL)/(JAS) still recorded a net profit of +¥135.4 billion/+$1.27 billion for the fiscal year. The drop was mainly the result of deferred taxes from the previous year. Excluding special items, the operating profit increased year-on-year (YOY) to ¥174.5 billion.
Group revenue increased +7.3% to ¥1.4 trillion, with expenses up +8.1% driven by higher fuel prices. Demand remained strong in domestic and international markets because of “moderate economic recovery trends.”
International passenger revenue rose +11.5% (YOY) to ¥462.9 billion. International traffic increased +3.4% on a +2.4% capacity gain, resulting in load factor rising +0.8 point to a record 81% LF.
Domestic revenue was up +3.9% to ¥518.2 billion, although revenue per passenger declined, thanks to strong competition from other airlines. Domestic traffic rose +4.5%, with capacity up +0.8%. Load factor increased +2.5 points to 71.8% LF. The (YOY) traffic gain was partly because of demand recovery following Japan’s Kumamoto earthquakes in April 2016.
Revenue from international cargo operations increased +29.3%, and was up +0.8% for domestic cargo.
(JAL)/(JAS), the Japan flag carrier expects its net profit to slip to ¥110 billion in the fiscal year through March 2019. It forecasts revenue to improve by +5.2% to ¥1.45 trillion for this period, although expenses will increase +6.6%. Operating profit is estimated at ¥167 billion.
News Item A-2: Oneworld (ONW) Alliance members Japan Airlines (JAL) and Russia’s (S7) Airlines (SBR) will expand their code share agreement by adding 2 new destinations in Russia.
Beginning April 29, (JAL) will add its JL code on (SBR) flights from Tokyo Narita to Irkutsk and Narita to Novosibirsk from June 2. The new code share flights are subject to government approval.
Through this cooperation, (JAL)’s code share flights in Russia will increase from 20 to 22 routes.
Current code share routes operated by (SBR) include Narita to Vladivostok; Khabarovsk to Osaka (Kansai); Vladivostok to Moscow (Domodedovo); and from St Petersburg to Samara, Kazan, Yekaterinburg, Nizhny Novgorod, Rostov, Perm, Ufa, Chelyabinsk, Volgograd, Krasnodar, Sochi, Nizhnekamsk, Kaliningrad, Omsk, Tyumen, and Novosibirsk.
May 2018: "Establishment of a New International Low-Cost Carrier (LCC) Business" by "China Aviation Daily" May 14, 2018.
Japan Airlines (JAL) announced the decision to establish a new low-cost carrier (LCC) business for the international market. As described in the (FY) 2017 to 2020, (JAL) Group Medium Term Management Plan, the company looks to develop and cultivate new business opportunities. The new (LCC) business will specifically feature international routes with medium to long-haul flights and will aim to provide customers with new options when traveling to/from Japan.
The company will be a consolidated subsidiary of the (JAL) Group and plans to operate flights from Narita International Airport to select destinations in Asia, Europe, and the Americas. In the 1st stages of its establishment, (JAL)/(JAS) will operate 2 Boeing 787-8 airplanes and is targeting to launch commercial flights from the summer of 2020 when Narita Airport plans to complete enhancements to its facilities.
To date, (JAL)/(JAS) has remained committed to refine its own full service carrier model while making key investments into Jetstar Japan. When (JAL)/(JAS) establishes the new (LCC) business, the company aims to create new demand, working along with the successful services provided by Jetstar Japan, which features domestic and short-haul international flights. Through these actions, the company will take on the challenge to deliver and meet the needs of diversified customer groups around the world.
In alignment with the company's Medium Term Management Plan, the (LCC) business is part of (JAL)/(JAS)'s '10 Year Grand Design' strategy where the company will accelerate growth through innovation, while contributing toward the country's target to welcome new inbound visitors in the next 3 years and beyond.
Contributed by Japan Airlines.
June 2018: Hawaiian Airlines (HWI) and Japan Airlines (JAL) have taken a major step to expand their partnership by applying to operate a revenue-sharing joint venture (JV) in the busy Hawaii to Japan market. The 2 carriers have filed their application with the USA Department of Transportation (DOT) and with Japanese regulators. They are already code share partners, and they propose to strengthen this to a metal-neutral arrangement on their networks between Hawaii and Japan and some beyond destinations. The carriers said they hope to gain approvals later this year, allowing the (JV) to be launched in the 2nd quarter of 2019.
Under their proposed alliance, (HWI) will gain online access to 28 new Japanese domestic destinations, and 6 additional points in Asia beyond Japan. (JAL) will gain online access to 6 new destinations on the Hawaiian interisland network.
The pair will also be able to coordinate scheduling, which will be particularly useful on the Hawaii to Japan sectors. (HWI) offers flights from Honolulu to both major Tokyo airports, Sapporo and Osaka, and flies between Kona and Tokyo Haneda Airport. (JAL) flies to Honolulu from Tokyo Narita Airport, Osaka and Nagoya, and from Narita to Kona. In their (DOT) application, the carriers note the (JV) will expand network opportunities for their customers, and will also reduce connection times. The arrangement will help stimulate traffic into Hawaii, according to the filing.
The carriers have already taken a significant step to improve connections, with (HWI) shifting its operations into Terminal 2 at Tokyo Narita Airport, which is the terminal used by (JAL). This move was made in anticipation of the (JV), the airlines said. There will also be an opportunity for (HWI) to change terminals in Osaka Kansai International Airport.
Adding the Asian online destinations is a key benefit for (HWI). The new Asian points it will gain access to include Hanoi and Ho Chi Minh City in Vietnam, Kaohsiung in Taiwan, Hong Kong, Jakarta and Guam.
(HWI) noted it currently lacks a deep relationship with a major carrier in international markets and is not a member of a global alliance. As a “relatively small carrier,” (HWI) has “encountered difficulties trying to break into international markets as a new entrant.” Gaining approval for the (JV) with (JAL) would “allow (HWI) to overcome these obstacles. The opportunities for further growth as an independent carrier are limited absent deep cooperation with a foreign partner like (JAL).”
If approved, this will be the 1st (JV) for (HWI). (HWI) also noted it would be the 1st (JV) involving a USA carrier outside the "big 3." 2 (JV)s are active in the Hawaii to Asia market (the United Airlines (UAL) All Nippon Airways (ANA) partnership and Delta Air Lines (DAL) Korean Airlines (KAL).
The (HWI) - (JAL) deal “would add a healthy dose of inter-alliance competition to the duopoly that exists today,” the (DOT) filing stated. The applicants said a significant capacity increase is expected in 2019 when (ANA) introduces Airbus A380s to its Hawaii routes.
(JAL) already has a (JV) with American Airlines (AAL) on transpacific routes. This arrangement will not be affected by the proposed (HWI) (JV), since (JAL) will not code share on Hawaiian’s routes to the USA mainland.
(HWI) and (JAL) began code sharing with each other in March. For (HWI), the (JAL) relationship has replaced its terminated code share partnership with (ANA). The (ANA) agreement was never a full (JV), and did not apply to any Asian routes beyond Japan. The (JAL) partnership will also include more domestic Japan points than the previous (ANA) agreement, the filing stated.
August 2018: "(JAL) Plans High-density 787 Dreamliners for New Longhaul (LCC)" by (ATW) Editor, Karen Walker (email@example.com), August 20, 2018.
Japan Airlines (JAL) is looking to significantly increase the seat density of the Boeing 787-8s that are assigned to its newly announced low cost carrier (LCC) unit and is eyeing markets in Asia, Europe and the Americas.
(JAL) formally established the new corporate entity on August 2 under the interim name (TBL) Company Ltd. (JAL) owns 100% of the company and named Shinto Nishida as Representative Director responsible for the organization. Its headquarters will be at Tokyo Narita Airport.
Speaking at the Boyd Group International Aviation Forecast Summit in Denver on AugUST 20, (JAL) VP Global Sales Steve Smith said the main driver for establishing a long-haul (LCC) was that forecasts show 50% of the seat market share in Asia will be (LCC) (and the (LCC) share will reach 50% even sooner in Europe and North America). “That’s 1 in every 2 seats,” Smith noted. “We are a high-yield carrier and we are missing out on a big part of the market.”
The plan is for this (JAL) (LCC) to start services in the summer of 2020 (the same year Japan will host the summer Olympics) with 2 787-8s.
(JAL), the Oneworld Alliance (ONW) carrier has 29 787s in its fleet with 1 of the industry’s least dense configurations of between 161 and 186 seats, Smith said. For the (LCC), (JAL) is looking at configurations in the 290 to 300 seat range, he said.
Beyond the (LCC) startup, (JAL) is embarked on a strategic plan to increase the number of cities it serves from 343 to 500 and to make non-Japanese sales account for 50% of its revenue. >30% of Japan’s population is aged 65 or older and the country’s population is in decline, so it is important to stimulate the overseas market and drive it to Japan, Smith said.
A lot of the city destination growth will be done via (JAL)’s partner airlines, Smith said. Beyond its long-time business partners such as American Airlines (AAL), British Airways (BAB), Finnair (FIN) and Spain flag carrier Iberia (IBE), (JAL) is working to establish new partnerships with China Eastern (CEA) and Hawaiian Airlines (HWI). If approved, the (CEA) partnership would give (JAL) +80 more destinations in China, Smith said.
(JAL) is also investing in new business opportunities. As part of that, it has made a $10 million investment in USA entrepreneurial company Boom Technology, which is developing a 55-seat supersonic airliner that Boom says could enter service as early as 2025. (JAL)’s investment secures it options for 20 aircraft. “What makes this airplane very interesting to us is it will cut flying time [from the USA] to Asia in half,” Smith said. “You will see people willing to spend money because it will save time.”
Click below for photos:
JAL-767-346ER - 2013-02
JAL-777-300ER - 2012-06
JAL-777-300ER - 2013-11
JAL-787 - 1ST - 2011-12
JAL-787 - 2013-07
JAL-787 - 2013-10
JAL-787 FLT DECK 2012-10
JAL-787 JA612J 2018-06.jpg
JAL-787-8 - 2014-09
JAL-787-C CLASS INTERIOR 2012-10
JAL-787-Y CLASS INTERIOR 2012-10
JAL-A350-900 - 2013-10
JAL-MRJ - 2014-08
9 737-400 (CFM56-3C1), OPERATED BY JAPAN TRANSOCEAN AIRLINES (SWL). 150Y.
7 737-446 (CFM56-3C1) (2812-28087, /96 JA8993; 2907-28097, /97 JA8994; 2911-28831, /97 JA8995; 2953-28832, /97 JA8996; 3044-28994, /98 JA8998). 27916; 27917; 28087; LEASED TO (JEX) 1998-07. OPERATED BY JAPAN TRANSOCEAN AIRLINES (SWL). 150Y.
1 737-843 (CFM56-7B) (40356, JA341J) 2015-07. 12C, 132Y.
9 737-846 (CFM56-7B27) (2225-25332, /07 JA303J; 2253-35333, /07 JA304J; 2289-35334, /07 JA305J; 2510-35339, /08 JA310J; 2584-35341, /08 JA315J; 2731-35344, /08 JA315J; 2824-35346, /09 JA317J; 35347, JA318J; 35356, JA327J), WITH WINGLETS. 12C, 132Y.
3 737-846 (CFM56-7B24) (35348, /09 JA321J, 2013-06; 2953-35349, /09 JA320J; 2977-35350, /09 JA321J), WITH WINGLETS. 12C, 132Y
1 737-846 (CFM56-7B24) (4002-39191, /12 JA342J), WITH WINGLETS. 176Y.
2 737-846 (CFM56-7B24) (4063-40947, /12 JA345J), WITH WINGLETS. 20C, 145Y.
32 +2 ORDERS 737-846 (CFM56-7B24), OPERATED BY (JAL) EXPRESS (JEX), 176Y.
0 747SR-146B (JT9D-7) (426-22066, /80 JA8142, SOLD TO (KAA); 601-23150, /84 JA8164), 23150 SOLD TO (LGC) 2005-12 AS (5U-ACF). 511Y.
0 747-146 (JT9D-7A) (427-22067 RETURNED (JJL) LEASED TO (TIC) (199-20532, /72 JA8116; 259-21029, /75 JA8128). 20532 SOLD TO (OTH) 2002-01. 22067; SOLD TO (LGC). 16C, 446Y.
00 747-246BSLR (JT9D-7Q) (116-19823, /71 N570SW, (JJL) LSD; 137-19825, /71 TF-ATF, LST (AID); 166-20333, /71 JA8108; 182-20505, /72 JA8111; 196-20530, /72 JA8114; 255-21031, /75 JA8127; 361-21678, /79 JA8129; 376-21679, /79 JA8130; 380-21680, /79 JA8131; 407-22064, /79 JA8140; 411-22065, /79 JA8141; 489-22478, /81 JA8149; 496-22479, /81 JA8150; 547-22745, /81 JA8154; 548-22746, /81 JA8155; 581-22991, /83 JA8152; 635-23389; /86 JA8159), 1 RETURNED 1999-01, 1 SOLD 1999-07. 20530 SOLD TO (OTH) 2001-10. 22064 LEASED TO (JAA) 2001-10. 21679 LEASED TO (JAA) 2004-05. 22064; SOLD TO (KAC) 2005-10. 22745; SOLD TO (KAC) 2006-03. 21743; 21744; SOLD TO (KAC) 2007-09. 57C, 348Y.
0 747-212F (JT9D-7Q) (457-21940, /80 JA8193), EX-(SIA), (JAE) LEASED, SCD. FREIGHTER.
0 747-221F (JT9D-7Q) (384-21743, /79 JA8165; 392-21744, /79 JA8160), SIDE CARGO DOOR. 21743; SOLD TO (KAC) 2007-05. FREIGHTER.
0 747-246F (JT9D-7Q) (21034 SOLD TO (CIF), LEASED TO (GFG) 2002-02) (571-22989, /82 JA811J), SCD. FREIGHTER.
0 747-246F (JT9D-7Q) (382-21681, /79 JA8132; 494-22477 /81 JA8937; 654-23391, /86 JA8171; 684-23641, /87 JA8180; 579-22990, /83 JA8161), (JAE) LEASED. 21681; SOLD TO (KAC) 2006-03. 22990; SOLD TO (KAC) 2007-04. 23641; SOLD TO (SOF) 2008-05. FREIGHTER.
0 747-346B (JT9D-7R4G2) (588-23067, /83 JA812J; 589-23068, /83 JA813J), (JAE) LEASED, 23068; RETURNED & SOLD TO (SOF) 2009-12. 67C, 336Y.
0 747-346B (JT9D-7R4G2) (599-23149, /84 JA8163; 607-23151 /85 JA8166; 640-23482, /86 JA8173; 658-23638, /86 JA8177; 664-23639 /86 JA8178; 691-23969, /88 JA8185), 23482; SOLD TO (TRX) 2007-02. 67C, 336Y.
0 747-346B (JT9D-7R4G2) (716-24156, /88 JA8189), LEASED TO (JAA). SOLD TO (TRX) 2007-02. 33F, 102C, 184Y.
0 747-346BSR (JT9D-7R4G2) (692-23967, /87 JA8183; 693-23898, /88 JA8184; 694-24018, /88 JA8186; 695-24019, /88 JA8187), 4TH CONVERTED TO INTERNATIONAL. 24019 TO (JAI) 2001-12. 24019; SOLD TO (TRX) 2007-02. 23C, 460Y.
0 747-346C (JT9D-7R4G2) (668-23640, /87 JA8179), SOLD TO (TRX) 2007-02. 67C, 336Y.
0 747-446 (CF6-80C2B1F) (1153-26359, /98 JA8913) (1202-26362, /99 JA8916; 1208-29899, /99 JA8917). 26356; CONVERTED TO FREIGHTER 2007-12. ALL 45 TO BE GROUNDED 2010-05. 25260, JA8085), SOLD TO AERSALE 2011-01 AS (N269AS). 12F, 97C, 237Y.
0 747-446D (CF6-80C2B1F) (844-25213, /91 JA8083). ALL 3 TO BE GROUNDED 2010-05. 24C, 544Y.
0 747-446F (CF6-80C2B1F) (1351-33748, JA401J; 1352-33749, JA402J), 2004-10. ALL 2 TO BE GROUNDED 2010-05. 33749; SOLD TO (ABC) 2011-01. FREIGHTER.
0 747-446BCF (CF6-80C2B1F) (929-26344, /92 JA8902), ALL TO BE GROUNDED 2010-05. FREIGHTER.
0 767-246 (JT9D-7R4D) (117-23212, /85 JA8231; 118-23213, /85 JA8232; 122-23214, /85 JA8233). 23213; SOLD TO DYNAMIC AVIATION 2010-12. 230Y.
6 ORDERS 767-346ER:
33 767-346 (JT9D-7R4D) (27313, JA8399; 915-33495, /03 JA606J; 33496, /03 JA607J; 919-33497, /04 JA608J; 921-33845, /04 JA609J; 925-33846, JA610J, 2004-09; 927-33847, JA611J, 2004-11; 33848, JA612J, 2005-03), 23963 LEASED TO (SWL) ON SEASONAL BASIS 2001-07. 16C, 254Y.
10 767-346ER (CF6-80C2B7F) (875-32996, /02 JA601J; 879-32887, /02 JA602J; 880-32888, /02 JA603J; 905-33493, /03 JA604J; 911-33494, /03 JA605J; 915-33495, /03 JA606J; 917-33496, /03 JA607J; 975-37548, /09 JA621J; 977-37549, /09 JA622J; 978-36131, /09 JA623J), 33493; IN "ONEWORLD" (ONW) COLORS 2009-02. 30C, 204Y.
11 767-346ER (CF6-80C2B7F) (935-33849, /05 JA613J; 943-33850, /06 JA615J; 938-33851, /05 JA614J; 954-35813, /07 JA616J; 964-35815, /08 JA618J; 974-37547, /09 JA620J; 994-40363, /10 JA651J; 995-40364, /10 JA652J; 997-40365, /11 JA653J; 999-40366, /11 JA654J; 1013-40369, /11 JA657J; 1015-40370, /11 JA658J; 1017-40371, /11 JA659J). 30C, 197Y.
5 767-346ERF (CF6-80C2B7F) (956-35816, /07 JA631J; 959-35817, /07 JA632J; 960-35818, /07 JA-633J), 35818 LST (LAN) 2010-09 AS (N422LA). FREIGHTER.
7 777-246 (PW4074), 50C, 330Y.
8 777-246 (PW4077) (23-27364, /96 JA8981 "SIRIUS;" 26-27365, /96 JA8982 "VEGA;" 39-27355, /96 JA8983 "ALTAIR;" 68-27651, /97 JA8984 "BETELGEUSE;" 72-27652, /97 JA8985 "PROCYON;" 27656, JA771J, 2015-05; 507-27657, JA772J, 2005-04), 12C, 377Y.
3 777-246ER (GE90-94B) (410-32889, /02 JA701J; 417-32890, /02 JA702J; 427-32891, /03 JA703J). 63C, 239Y.
8 +3/2 ORDERS 777-246ER (GE90-94B) (435-32892, /03 JA704J; 446-32893, /03 JA705J; 475-32894, /04 JA707J; 483-32895, /04 JA708J; 489-32896, JA709J 2004-09; 464-33394, /03 JA706J; 33395, /04 JA710J; 533-33396, /05 JA711J; 577, /06 JA735J; 583, /07 JA736J), 56C, 40PY, 149Y.
4 777-289 (PW4074) (134-27639, /98 JA007D; 146-27640, /98 JA008D; 159-27641, /98 JA009D; 213-27642, /99 JA010D), 14F, 82C, 279Y.
10 777-346 (PW4090) (27654, JA751J, 2015-11; 27655, JA752J, 2015-11; 152-28393, /98 JA8941 "REGULUS;" 158-28394, /98 JA8942 "SPICA;" 196-28395, /99 JA8943 "ARCTURUS;" 212-28396, /99 JA8944 "ANTARES;" 238-28397, /99 JA8945 - SEE PHOTO; 458-32894, /03; 60-32895, /03; 32896, /04; 33847, JA611J, 2015-11). 78C, 422Y.
13 777-346ER (GE90-115B) (429-32431, JA731J, 2004-06 - - SEE PHOTO - - "JAL-777-300ER-2008-08;" 521-32432, JA733J, 2005-06; 32433, JA734J, 2005-07; 577-32434, JA735J, 2006-07; 583-32435, JA736J, 2006-08; 668-36126, JA737J, 2007-10; 744-36127, JA740J, 2008-08; 812-36128, JA741J, 2009-09; 816-36129, JA742J 2009-09; 821-36130, JA743J, 2009-10), 8,300M RANGE. 8F, 77C, 46 PY, 156Y; OR 9F, 63C, 44PY, 156Y. IN JANUARY 2013: 8F; 49C; 40PY; 135Y.
29 +43/15 ORDERS 787-8/787-9 DREAMLINER (GEnx), LONG-RANGE, 184 PAX:
24 +27 ORDERS 787-8 DREAMLINERS (GEnx-1B64) (23-34832, /11 JA822J; 27-34834, /12 JA824J; 33-34835, /12 JA825J; 37-34836, /12 JA826J; 38-34837, /12 JA827J; 70-34838, /12 JA828J; 84-34839, /12 JA829J; 34842, /13 JA834J; 34844, /13; 34853, /15 JA839J; 34854, 2015-05; 38136, JA844J, 2016-05), 42C, 144Y.
5 +16/20 ORDERS 787-9 DREAMLINER (34843, JA867J, 2017-02; 34858, JA864J, 2016-5; 35422, JA861J, (1ST) 2015-06; 35424, JA869J, 2017-07; 38138, JA865J, 2016-08).
2 DC-10-40 (JT9D-59A) (310-47825, /80 JA8542 LEASED TO (JAI) 1999-10), 1 LEASED TO (JAA). 47855 SOLD 2001-03. 47822 SOLD TO (NI) AIRCRAFT LEASING 2003-11. 46967 RETURNED 2004-09. 46662; SOLD TO VIVALDI OVERSEAS 2005-04. 47824; 47825; 47826; SOLD TO VIVALDI OVERSEAS 2005-11. 39C, 225Y.
4 MD-90-30 (V2525-D5), 18C, 132Y.
1 MD-11 (PW4460) (552-48571, /93 JA8580 "TUFTED PUFFIN;" 556-49572, /93 JA8581 "FAIRY PITIA;" 559-48573, /94 JA8582 "RED CROWNED CRANE;" 566-48574, /94 JA8583; 568-48575, /94 JA8584 "OKINAWA RAIL;" 574-48576, /95 JA8585; 583-48577, /95 JA8586; 578-48578, /95 JA8587 "PRYER'S WOODPECKER;" 599-48579, /96 JA8588; 610-48774, /97 JA8589 "ROCK PTARMIGAN"), 8 (JAE) LEASED. 48571; & 48574; SOLD TO (TBC) FOR (UPS). 48774 SOLD TO (TBC) 2003-07. 48579 SOLD TO (TBC) 2003-10. 48578 SOLD TO (TBC) 2004-05. 48577 SOLD TO (TBC) 2004-08. 48573 SOLD TO (TBC) 2004-11. 65C, 168Y.
31/25 ORDERS A350 XWB (INCLUDING 18 A350-900 & 13 A350-1000) (TRENT XWB), (A350-900, 3 CLASS LAYOUT (>300 PAX): 8,100 NM RANGE; A350-1000, (>350 PAX): 8,400 NM RANGE:
20 OPTIONS BOOM SUPERSONIC TRANSPORT (SST).
9 BOMBARDIER CL-600-2B19 (CRJ200ER) (CF34-3B1), OPERATIONS BY J-AIR. 50Y.
4 BOMBARDIER DHC-8-103 (PW121), OPERATIONS BY RYUKYU AIR COMMUTER. 39Y.
1 BOMBARDIER DHC-8-314 (PW123B), OPERATIONS BY RYUKYU AIR COMMUTER. 50Y.
11 BOMBARDIER DASH 8-402 (PW150A), OPERATIONS BY JAPAN AIR COMMUTER. 74Y.
15 EMBRAER E170-100 STD (CF34-8E5), OPERATIONS BY J-AIR. 78Y.
15 ORDERS (2015-02) E170 (CF34), 78Y AND E190 (CF34) 104Y:
1 E190, OPERATIONS BY J-AIR, (1ST DELIVERY MAY 2016).
11 SAAB 340B (CT7-9B), OPERATIONS BY JAPAN AIR COMMUTER. 36Y.
3 B AE JETSTREAM 31 SUPER.
32 ORDERS (2021-02) MITSUBISHI MRJ70, 78Y AND MRJ90, 92Y.
Click below for photos:
JAL-1-DR KAZUO INAMORI - 2012-08
JAL-1-Masaru Onishi - 2017-09.jpg
JAL-1-Masaru Onishi 2016-06.jpg
JAL-2-MASARU ONISHI-CHMN - 2012-08
JAL-2-MASURO ONISHI - 2013-02-A
JAL-3-YOSHIHARU UEKI - 2012-08
JAL-7-Akihide Yoguchi 2018-03.jpg
DR KAZUO INAMORI, CHAIRMAN EMERITUS.
MASARU ONISHI, CHAIRMAN, EX-PRESIDENT & CHIEF OPERATIONS OFFICER (COO), (JAL) GROUP (JAL)/(JAS), EX-PRESIDENT (JAL)/(JAS), & EX-JAPAN AIR COMMUTER PRESIDENT, (2010-01).
"Airline Business" Magazine Interview 2013-02: Masaru Onishi has led Japan Airlines (JAL) through a remarkable reversal in fortunes. Against a background of natural disasters in its home market, (JAL) has emerged from bankruptcy to deliver huge profits
Masaru Onishi has taken part in 4 marathons in recent years, but preparing for and completing them is a cinch compared with his day job. “Marathons? Not as tough as running (JAL),” the Oneworld (ONW) Alliance carrier’s Chairman said with a laugh at the accession event in Kuala Lumpur marking Malaysia Airlines (MAS)’ entry into the (ONW) alliance.
It has been a gruelling few years for Onishi and his colleagues. Following several years of losses and after amassing $25 billion in debt, (JAL) filed for bankruptcy in January 2010.
(JAL) also received a 350 billion yen/$3.8 billion government bail-out, its 4th aid package since 2001.
Tokyo, in return, imposed a slew of stringent conditions that led (JAL) to slash its workforce by a third to 31,000, retire fuel-guzzling airplanes such as the 747-400, cut pension payouts, and slash costs throughout its operations.
This was done amid a global financial meltdown and a chronically anemic Japanese economy, a devastating earthquake and nuclear fall-out in Japan, and now the grounding of the 787 airplanes that are integral to its international business.
The results were beyond anyone’s belief. (JAL) came out of rehabilitation and raised $8.5 billion in a successful (IPO) in 2012. The government sold its stake via the (IPO) for $7 billion, allowing it to double its 2010 investment. Net profits for the 9 months to December 31 were +$1.5 billion on sales of $10 billion, and full-year profits were projected to be +16% higher than an earlier forecast at +$1.8 billion.
“The airline business is volatile. We cannot do anything about it and must accept it. We realized, however, that it is important to develop a financial structure that is very strong, and enables us to survive and generate profits despite the challenges or events that might take place,” said Onishi.
Eliminating any factor that could cause such a failure once again has been foremost on the mind of (JAL)’s management. Key to this, said Onishi, is changing the mindsets at a company which pre-bankruptcy, had been run, much like a government bureaucracy that served vested political interests despite its privatization in 1997.
* (JAL)’S MINDSET CHANGE
Much of the credit for the mindset change goes to Kazuo Inamori, a 78-year-old retired industrialist parachuted into (JAL) as its Chairman by the government in 2010. Kyocera, the conglomerate Inamori founded, had never made a loss in 53 years. The government wanted him to transform (JAL) completely into a proper profit-making venture with operations and mindsets to match.
Onishi, who joined (JAL) as an Engineer and was running (JAL) subsidiary Japan Air Commuter during the bankruptcy, was appointed President and made responsible for the day-to-day operations.
That was a major shift as previous heads of (JAL) knew how to play internal politics. Onishi, despite his 32 years in the company, was not really a member of the inner circle. Which was what the government wanted.
Inamori set about trying to impose a new set of values in the company, encapsulated in a pocket-sized booklet entitled (JAL) Philosophy, which all employees were required to dutifully study. The management went to work trying to bring around those skeptical to their views.
Onishi, who became Chairman in January 2012 when Inamori was appointed Chairman Emeritus, said he was “honored” to have worked with the veteran industrialist. Inamori’s ideas, he added, helped the company and management “part with our past” and learn a new “way of thinking and progressing”.
“Previously, we lacked any sense of being a purely private company. We had a sense of security that we will never go bankrupt. If we were the (JAL) of old, we would have just blamed the bankruptcy on external factors.
“Instead, we realized that we needed to change ourselves, change our business structure and, most importantly, our way of thinking. In order to bring about drastic change, we declared internally and externally that we needed to completely part from the past. And we succeeded in doing that.”
(JAL) also survived because the Japanese government decided it was too big to fail: it employed too many people, a large number of domestic businesses were dependent on it, it played a vital role in linking the country with air services, and it was crucial to Japan’s position as an international transport hub.
Criticism of the bail-out persists. Some, including (JAL)’s rival, All Nippon Airways (ANA), said that injecting public funds into the airline distorted the market. The money could have been better used to reduce taxes and stimulate air travel, they added. Onishi addressed this criticism in 2 parts.
Initially, there were some concerns about whether the money was enough to turn around the airline and if a 2nd bankruptcy would be necessary. There were also questions of whether (JAL)/(JAS) would go far enough with its reforms. These, he pointed out, were legitimate concerns given (JAL)/(JAS)’s history.
However, after (JAL)/(JAS) began to turn around its operations, some of its rivals sniped that the success was inevitable because of the money pumped into the airline. (ANA)’s executives, for example, liked to proudly point out they had become roughly the equal of the now-smaller (JAL)/(JAS) in terms of network, passenger numbers and revenues without any help. “Of course, what we achieved was possible only with the support from many sectors, including the government,” concedes Onishi. “But what I hope is that the public will realize how hard we have worked during the rehabilitation process. That is why our results are much better than was expected. It is not only because of the government.”
The government is also responsible for something else (a string of liberalizing measures in the airline industry which means (JAL)/(JAS) now faced a very different market from the 1 it operated in pre-bankruptcy.
Restrictions on operations at Tokyo’s bottle-necked Narita and Haneda airports were eased, leading to additional departure and arrival slots for international services.
The green light was finally given for domestic low-cost carriers (LCC)s, allowing 3 new airlines including Jetstar Japan ((JAL)’s joint venture with Australia’s Qantas Airways (QAN)) to begin operations in 2012.
It also allowed joint ventures (JV)s on routes across the Pacific and to Europe, allowing (JAL) to start partnerships with American Airlines (AAL) and British Airways (BAB). This allowed it to build on its strength as a network carrier that connects the rest of Asia to these 2 continents.
These “drastic changes” spurred new demand, said Onishi. (JAL)/(JAS) could take advantage by playing to its strengths (being a network carrier that focuses on medium-to-long-haul routes), leaving the (LCC)s and other 2nd-tier full-service airlines to compete in the short-haul international market.
“The market has expanded and this has enabled customers to have more choice,” said Onishi. “This is a business chance, something that can be advantageous to us. We should put emphasis on the areas where we are strong in so that we can appeal to our core customers.”
One challenge is the domestic market, where the weak economy and declining population mean there is little growth potential. Onishi said (JAL) is unlikely to invest much more in this segment and will stick to its existing network, leaving the (LCC)s to fight for and mop up a new generation of passengers.
High fuel prices and foreign exchange fluctuations, as well as unforeseen events such as natural disasters or terrorist attacks, remain issues (JAL)/(JAS) will continue to grapple with.
However, Onishi said the biggest battle is ensuring (JAL)/(JAS)’s employees never go back to their old ways: “We have been successful so far in changing the mindset, but we have to do this constantly and we can never stop doing this.” (JAL)/(JAS)’s employees, he added, must continue to find innovative ways to tackle the problems they face themselves and without the government’s help.
(JAL), one of the largest operators of 747-400s before retiring all of them during its rehabilitation, is not interested in new quad engined airplanes such as the 747-8 or A380, unless the market changes dramatically, said Onishi. Until then, medium- and long-haul services will continue to be served by the far more efficient twin engined wide bodies.
Additional regional jets will be needed, however, to replace its aging Bombardier (BMB) CRJ 200s and (JAL) is leaning towards ordering Embraer E-Jets, especially since the re-engined variants will provide much better economics than the existing airplanes. Asked if (JAL) would consider the domestically designed and produced Mitsubishi (MRJ), which has been delayed and is reportedly more expensive than competing airplanes, Onishi pointedly said: “No comment.”
That, if anything, is a marked change from the (JAL) of old. Previously, under government pressure, (JAL) would probably have been 1 of the 1st to sign up for the (MRJ). Instead, (ANA) was the launch customer and Mitsubishi officials have their work cut out trying to convince (JAL) about their airplane’s advantages.
So in this new operating environment, with a new corporate structure and mindset, what should (JAL)/(JAS) aspire to? Previously, its management was obsessed with being number 1 in Japan and 1 of the top airlines in the world. Now, profitability, rather than size is the focus. Customers, rather than vested interests, are the driving factor.
“There a lot of ways of defining number 1. Is it a company’s scale?” asked Onishi. “What I would like is for my company to be number 1 in providing the best service to the customers. I want to be the airline of choice. If we do that, everything else will fall into place. That is where (JAL) should be (number 1).”
* ENGINEERING SKILLS
Masaru Onishi was an unlikely candidate for the top job at (JAL). He joined in 1978 after graduating in Engineering from Tokyo University, working in Maintenance departments. For 4 years from 1997, he was in the Corporate Planning team before rising to senior positions within Engineering & Maintenance divisions once again.
It was only in 2009 that he was appointed President of (JAL) subsidiary, Japan Air Commuter and a year later, after a management reshuffle following the bankruptcy, he was appointed President, spearheading the restructuring. He became Chairman in January 2012 before the company re-listed in September.
Onishi’s Engineering skills are handy amid the grounding of JAL’s 787s. Sources said he was fully aware of the technical issues and was the impetus behind some very hard questions (JAL) was privately asking Boeing (TBC).
* DIVINE LEADERSHIP
At any Western company, a booklet spelling out the company’s philosophy that employees have to dutifully study, would have been laughed off. Not at (JAL), where former Chairman, Kazuo Inamori, a devout Buddhist, came up with the (JAL) Philosophy.
The 1st part is entitled “In order to lead a wonderful life” and details the values employees need. Sub-chapter titles included tips: “Have a beautiful mind,” “A small good is like a great evil, while a great good may appear merciless,” and “Strive for perfection.”
The 2nd part, entitled “To become a wonderful (JAL),” is divided into 5 chapters. The 1st suggested ways in which “each of us makes (JAL) what it is,” the 2nd said employees should “have a sense of profitability,” the 3rd called on everyone to “unite our hearts,” the 4th implores them to “possess a fighting spirit,” and the 5th said everyone should be “creative in our work.”
“I am honored to have had the opportunity to learn from Inamori-san the kind of leadership we should have, and the important things we should consider as human beings,” said Masaru Onishi.
YUJI AKASAKA, PRESIDENT (JAL)/JAS) (2018-04).
Yuji Akasaka, whose current role is Managing Executive Officer for Engineering & Maintenance, will take over as President on April 1. He will also become a board member in June subject to shareholder and board approval at (JAL)’s general meeting. Akasaka joined (JAL) in 1987, and held a series of senior engineering roles.
AKITOSHI NAKAMURA, ASSISTANT PRESIDENT (2010-12).
MASATO UEHARA, ACTING CHIEF OPERATIONS OFFICER (COO) (2010-01).
YOSHIMASA KANAYAMA, CHIEF FINANCIAL OFFICER (CFO).
HIDEKI OSHIMA, EXECUTIVE VP INTERNATIONAL RELATIONS & ALLIANCES.
KOICHI MIZUTOME, EXECUTIVE VP (2010-12).
NAOYUKI MORITA, EXECUTIVE VP (2010-12).
HISEO TAGUCHI, EXECUTIVE VP (JAL)/(JAS) & (JAL) (2010-01).
HAJIME KATO, EXECUTIVE VP JAPAN AIRLINES DOMESTIC (JAS) (2004-06).
NOBUHIRO SATO, EXECUTIVE OFFICER ENGINEERING & MAINTENANCE.
YUSUHIRO NAKAMURA, SENIOR VP THE AMERICAS.
Y YUASA, SENIOR MANAGING DIRECTOR OPERATIONS & ENGINEERING (1999-07).
TAKENORI MATSUMOTO, SENIOR MANAGING DIRECTOR.
HIROYASU HAGIO, SENIOR VP, GENERAL MANAGER.
DAIJI NAGAI, SENIOR VP CORPORATE PLANNING.
NORIO OOGO, MANAGING DIRECTOR ENGINEERING & MAINTENANCE (1999-07), PRESIDENT MAINTENANCE COMPANY (IN-HOUSE) (2001-03).
KATSUYUKI ARAI, MANAGING DIRECTOR.
TAKAO IMAI, MANAGING DIRECTOR.
TETSUYA TAKENAKA, HEAD CUSTOMER EXPERIENCE DIVISION (2009-08).
N MIURA, SENIOR VP DEPUTY GENERAL MANAGER ENGINEERING & MAINTENANCE (1998-05).
YUTAKA YOSHINO, SENIOR VP GENERAL MANAGER CARGO & MAIL, PRESIDENT IN-HOUSE CARGO.
SUSUMMU KASUYA, SENIOR VP CABIN ATTENDANTS DIVISION.
MAKOTO ITAGAKI, SENIOR VP & GENERAL MANAGER.
MAKOTO FUKADA, MANAGING DIRECTOR.
GENTARO MARUYAMA, MANAGING DIRECTOR.
STEVE SMITH, VP GLOBAL SALES.
HIROYUKI KOBAYASHI, VP FLIGHT SAFETY (TYOOYJL),
SHINOBU KOBAYASHI, VP FLIGHT OPERATIONS ENGINEERING (TYOOEJL), (firstname.lastname@example.org).
MASAAKI HAGA, VP AIRCRAFT MAINTENANCE (HANEDA) (TYOMHJL)
OSAMU SASASHARA, VP AIRCRAFT MAINTENANCE (NARITA) (NRTMZJL)
AKIHIDE YOGUCHI, VP MARKETING & STRATEGY RESEARCH - ASIA & OCEANIA.
Akihide has nearly 30 years of experience in Japan Airlines (JAL), recently focusing on Corporate Planning and Strategy Research. He has experienced a vast area of airline management (always in Japan Airlines (JAL)) such as Domestic Sales and Planning, Schedule Planning in the Cabin Crew division, or the Administration section of the Overseas branch (Milan, Italy).
YASUNORI ABE, VP ENVIRONMENTAL AFFAIRS.
YOJI IDA, EXECUTIVE OFFICER MAINTENANCE CENTER (NARITA (NRTMZJL) (email@example.com) (1999-07).
T SHIMOEDA, EXECUTIVE OFFICER FLIGHT OPERATIONS.
HIDEO HIRAMOTO, VP ENGINEERING (TYOJEJL) (firstname.lastname@example.org).
A FURUSAWA, VP QUALITY ASSURANCE (QA).
S NEO, VP AIRCRAFT SYSTEMS MAINTENANCE CENTER (1997-08).
K TANABE, VP ENGINE MAINTENANCE CENTER.
KATSUTOYO YAMADA, VP COMPONENT MAINTENANCE CENTER.
T KAHARU, VP ENGINEERING RESEARCH & DEVELOPMENT.
M IZUKA, VP TECHNICAL SALES & CONTRACTS.
S NEO, VP MAINTENANCE PLANNING.
H ICHIMURA, VP RELIABILITY REPORTING (2000-04).
TAKAHIRO ABE, VP PURCHASING.
K HAMASHIMA, SENIOR DIRECTOR PRODUCTION ENGINEERING.
K AMIYA, SENIOR DIRECTOR SYSTEMS ENGINEERING.
Y SUZUKA, SENIOR DIRECTOR MAINTENANCE PROGRAM PLANNING.
YOSHINORI TAKASU, SENIOR DIRECTOR SYSTEM ENGINEERING,
T HANDA, DIRECTOR MECHANICAL SYSTEMS ENGINEERING.
MR MAEDA, DIRECTOR MECHANICAL SYSTEMS.
Y HOSOYAMA, DIRECTOR LINE MAINTENANCE (HANEDA).
K KAYUKAWA, STAFF DIRECTOR QUALITY ASSURANCE (QA).
MASATAKA OKITA, DIRECTOR ENGINEERING.
KENJI NAKAHASHI, MANAGER ENGINEERING.
NAOKI MATSUMOTO, MANAGER SERVICE ENGINEERING (HANEDA)