18-Mar-2010 11:00 AM

JAL Chairman: corporate management can't "run a greengrocery"; plans profitability in Autumn-2010

Japan Airlines Corp Chairman, Kazuo Inamori, criticised the firm’s corporate management, commenting that the company has "too few people who base management on profits and losses” (AFP/Dow Jones, 17-Mar-2010). He added, “the number of employees who have any merchant spirit is extremely low. I'm telling executives and others: 'You guys wouldn't be able to run a greengrocery with your ideas.'"

Mr Inamori plans to return the carrier to profitability on a monthly basis from Autumn-2010, but added that the carrier is currently “bleeding a loss every day” (Dow Jones/AFP, 17-Mar-2010). Mr Inamori added, “we have to proceed with drastic restructuring, including cost cutbacks" if the target is to be achieved and if the carrier is to secure funds from financial institutions in the future.

Japan Airlines Corp: ''Unless we are back into the black by around that time, we will not be able to receive financing in the future, not only from the government but also from our traditional mega-banks. We need to carry out major restructuring including massive downsizing of costs,'' Kazuo Inamori, Chairman. Source: Kyodo, 17-Mar-2010.

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