Japan Airlines is reportedly planning to detail an outline of its rehabilitation plan, including route and job reductions today (28-Apr-2010) (Kyodo News, 28-Apr-2010). However, the carrier will reportedly delay the submission of its turnaround plan to the Tokyo District Court by approximately two months from its initial target in late Jun-2010. The airline is facing significant opposition from local governments regarding the carrier’s proposed domestic route cuts, while its creditor banks are pressuring the company for further restructuring efforts. The key pillars of the rehabilitation plan will reportedly include an elimination of approximately 50 international and domestic routes, a reduction of approximately 16,000 employees by Mar-2011 and the replacement of ageing aircraft. The carrier is aiming to return to an operating profit in FY2010.
JAL to outline rehabiliation plan this week, but plan submission to be delayed: reports
You may also be interested in the following articles...
Australia and New Zealand hit highs in 2016, but 2017 will lose a little lustre
Australia and New Zealand enter 2017 on a different level from 12 months previously. The biggest change, not just compared to 2016 but since the global financial crisis, is that Qantas is revelling in a successful turnaround.
Vueling NEXT Part 2: new CEO to lead IAG's LCC in restructuring bid to achieve IAG targets
Vueling's new CEO, Javier Sanchez-Prieto, is leading a programme ('Vueling NEXT') to improve its profitability, both through revenue enhancement and cost efficiency gains. Among other aims this hopes to reduce Vueling's high levels of seasonality, to raise aircraft utilisation and to improve labour productivity. Given ambitious financial targets by IAG – action is needed.
Part 1 of CAPA's analysis of Vueling examined its capacity growth and profitability trends since its acquisition by IAG in 2013. Vueling's operating margin and return on invested capital are on a downward trend, hence the new initiative to reverse these trends.
This second part of CAPA's analysis considers the profit improvement programme. During this programme Vueling's fleet will remain broadly flat to 2018, before resuming growth thereafter. Focus markets for Vueling are domestic Spain and Spain-Europe. It has strengths in these markets but faces growing competition from its lower-cost rival Ryanair, which has also been raising its service quality – closing the gap to Vueling's more premium positioning on the LCC spectrum.