Japan Airlines news briefs

JAL seeks "rebirth" and needs reform

Reporter Ji Shiping Japan Airlines, Asia's largest airline in terms of revenue, and its two subsidiaries filed for bankruptcy protection on the 19th. Bankruptcy and reorganization seek “rebirth from the ashes.” Whether JAL can achieve its goal depends on whether JAL can accurately grasp the economic and market trends and carry out profound reforms accordingly. JAL’s decline is thought-provoking. It was once the flagship of Japan's aviation industry and a symbol of Japan's rapid post-war economic development. Waseda University finance professor Masio Noguchi once said: "When I was studying in the United States, when I saw the Japan Airlines plane at the airport, I had a good feeling. It is the pride of us Japanese." However, There are big difficulties, and there are implicit "downside" risks. High oil prices have made it difficult for JAL's many relatively old, large, and inefficient aircraft to fly. The reduction in passengers during the financial crisis is another blow. Internally, the company expanded rapidly in the postwar decades, but when Japan's asset and stock bubbles burst in the 1980s, venture capital investments in foreign resorts and hotels took their toll; At the same time as pension and salary expenses, it also operates a domestic route network that is not profitable but has "political needs." The total debt of JAL and its subsidiaries ranks fourth in Japan. What is particularly eye-catching is that due to various reasons such as its special status and "halo" of honor, JAL was "favored" by the previous ruling Liberal Democratic Party government and received assistance many times. Although this avoids "short-term pain", it misses a good opportunity for structural adjustment and reform. JAL's pursuit of "rebirth" is to find the path for future reform from the reasons for its decline. In an overall environment of energy shortage, energy efficiency must be improved; in an era of fierce market competition, company operation and operational efficiency must be improved to win. JAL's restructuring plan includes replacing large aircraft with smaller aircraft, layoffs, and route cuts, all of which are in response to the situation. Whether the reform can be implemented and adjusted and deepened with changes is an important test for JAL. Industrial upgrading and structural adjustment are important paths for enterprises to develop and win. Becoming "thinner", "smarter", and getting rid of unbearable debt are JAL's goals in responding to the crisis, and this exciting situation has also given many companies food for thought.

On February 28, 2011, Japan Airlines, which was undergoing operational restructuring, displayed the "Flower Crane" No. 1 aircraft with the flamingo logo painted on the tail at Tokyo Haneda International Airport. Withdrew from the stage of history. JAL plans to emerge from bankruptcy protection proceedings at the end of March after obtaining new loans from major trading banks, and will use the "flamingo" logo that has reappeared after three years as a "symbol of rebirth." "Florigus" No. 1 is a new American Boeing 767 passenger aircraft. Its first flight is scheduled to fly on the Haneda-Kushiro route in Hokkaido on the afternoon of the 28th. Scheduled flights are planned to fly the Haneda-Beijing route from March 2, mainly responsible for international routes between Japan and other parts of Asia.