JAL Group announced (07-Aug-09) plans to make “drastic adjustments” to its network and fleet size in 2HFY2009, in accordance with its FY2009 management plan and to more closely match capacity to demand sooner and allow the Group to improve profitability. In 2HFY2009, flight frequencies will be further reduced on eight international routes and six domestic routes and two international routes from Nagoya will be eliminated – see Route Changes Table for more information. A major downsizing of aircraft in this period will affect 15 flights on 14 international routes, where B747-400s will be switched to B777s and 767s, and B767s will be switched to B737s. JAL also plans to progress with the Premium Strategy, involving the addition of the latest JAL Suite in first class, Shell Flat Neo in business class, and the new cabin category, Premium Economy, with services from Tokyo Narita to Chicago, Los Angeles, Milan and Rome to be affected. The carrier also plans to launch Tokyo Haneda-Beijing service and increase Osaka Itami-Fukuoka frequency and enact some schedule changes to select international cargo services. [more – Full PDF]
JAL Group announces more network cuts from Oct-2009
You may also be interested in the following articles...
Hawaiian Airlines: enjoying a revenue premium while preparing for crucial new network development
During the first few years of the decade Hawaiian Airlines undertook a massive network expansion that included the addition of more than 10 long haul routes. With a few minor expansions Hawaiian efforts have been successful, reflected in the airline’s more balanced network that features some of Hawaii’s largest origin markets.
Hawaiian begins taking the next steps to fill gaps within its network in 2017. During the year the airline starts accepting deliveries of Airbus A321neos that allow it to serve smaller secondary markets in North America without degrading the company’s cost performance – which is proving to be a challenge in the short term. Hawaiian believes the aircraft is uniquely qualified to handle some of the operating conditions from the region’s islands to the US mainland.
Hawaiian embarks on 2017 enjoying a significant revenue premium above the US industry and the airline continues to strengthen its revenue management techniques to maximise product offerings, including extra legroom seating and new lie-flat premium seating on its Airbus widebody aircraft. The company is forecasting modest capacity growth for the year of 2% to 5%, the bulk of which is driven by new services to Tokyo launched in 2016.
Mexican airlines: growing US protectionism creates a cloud of uncertainty over 2017
Mexican Airlines are starting 2017 under a cloud of uncertainty driven by the country’s slower economic growth and the increasing rhetoric by president-elect Donald Trump against US companies planning to sustain or expand their operations in that country. The US auto manufacturer Ford recently back-pedalled on plans to construct a new plant in Mexico, and GM has also drawn ire from the president-elect over its Mexican operations.
The threat of dissolving trade pacts, and Mr Trump’s general anti-immigration stance, sent the MXP plummeting after the US Presidential election, and the latest round of threats of taxation on automobiles manufactured outside the United States has put additional pressure on Mexico’s currency, which has been weaker during the last year and that has created pressure for Mexican airlines. However, for now, Mexico’s air passengers continue to grow at a steady rate. The country’s domestic airlines charted approximately 12% growth in passengers from Jan-2016 to Nov-2016, and international passengers among those airlines for the same time period strengthened by 11%.
Predicting whether those levels of growth will continue in 2017 is a challenge, given the level of uncertainty the US election has created for Mexico, along with internal strife the country is dealing with – including growing inflation and discontent over rising fuel prices.