Japan Airlines Corp, following its emergence from bankruptcy administration, will be a smaller company more reliant on Asian routes and global partners (Bloomberg/Kyodo News/Japan Times, 28/29-Mar-2011). The carrier has scaled back its global network and its fleet, involving the grounding of 103 aircraft including its B747 fleet. The carrier has also shed around a third of its workforce. JAL has offset its network and fleet cuts by boosting cooperation with partners in the oneworld alliance, including a venture with American Airlines that is scheduled to commence on 01-Apr-2011 and increased codeshare services with alliance members including Cathay Pacific. Chairman Chairman Kazuo Inamori noted that another key change as part of the restructure is the company culture and attitude. “Finally, the thinking has changed at JAL. People have realised that if we don’t take care of things ourselves no one is going to do it for us,” he said.
JAL emerges from bankruptcy as smaller carrier; more reliance on partners
You may also be interested in the following articles...
Qantas achieves financial sustainability, now takes on Singapore Airlines and Cathay Pacific
Qantas on 24-Aug-2016 delivered its second consecutive AUD1 billion annual profit, indicating that the long restructuring under the tenure of CEO Alan Joyce has not only worked but created a stronger Qantas. The group has weathered the boom and bust of the Australian resource economy and times with Asian LCC JVs; has turned Gulf and Chinese competitors into partners; and has risen above a key competitor's influx of foreign shareholding, which fuelled an unsustainable capacity and product war.
The question for Qantas is what next. Domestic has returned to a comfortable duopoly and growth is on the wane, while international partners will contribute higher growth by putting passengers onto the domestic Qantas network. Loyalty, a stable business, is growing and profitable but does not capture Mr Joyce's passion. Internationally, North America is Qantas' anchor. The continent accounts for one third of Qantas' now profitable international capacity. Qantas and its proposed partner American Airlines dominate, holding 42% of the Australia/New Zealand-North America market. It is a profitable but not very emotional business, although it could move to new 787-9 routes to Dallas or Chicago. Where Qantas remains strategically keen is to Asia and Europe, where its historical deficiency helped rivals Singapore Airlines and Cathay Pacific to rise to their powerhouse status.
The competition with SIA and Cathay is longstanding but reinvigorated: SIA has reiterated its desire to operate between Australia and the US, while Qantas blames Cathay for squashing the proposed LCC Jetstar Hong Kong. Qantas may not be able to beat SIA and Cathay entirely, but for the first time in its history Qantas believes it can compete with them on cost. Qantas seeks mainline and Jetstar growth to and within Asia. Qantas is weighing a European restructuring that could result in the launch of 787-9 flights between Perth and London – the first nonstop flight between Australia and Europe. Qantas may not be as big as it used to be, but it is smarter, more agile and more profitable. Qantas has evolved, but its competitors appear less stable. This is a time to seize momentum and rebuild Qantas' flagship status.
Northeast Asia's outlook remains bright – and perhaps more so than before
A few years ago amidst the economic downturn it was Northeast Asia – with its main Chinese market – that was a strategic bright spot for aviation.