Japan Airlines Group outlines four pillars to guide future management direction

Japan Airlines Group stated (30-Oct-2020) its future management direction will be set under the following four pillars:

• Rebuilding financial structure:
  • Maintaining its current employment, the company will rebuild a firm financial structure and strengthen our risk tolerance through implementing thorough cost and investment reduction and improve profitability;
• Restructure the business structure:
  • To prepare for the possibility of the temporary decline in passenger demand post COVID-19 and the significant changes in business and tourism demand, the company will thoroughly review the business structure, including the scale of its international passenger business in response to demand trend and the business portfolio of full service carrier (FSC) and LCC. Also, the carrier will develop new businesses that are less dependent on passenger demand as a new revenue stream, and will strengthen risk tolerance by strategically balancing its focus on various businesses. Details include:
    • FSC business:
      • All 11 Boeing 777-200ERs for international services will be retired by the end of FY2020, with some to be used for domestic services;
      • All 13 777s for domestic services will be retired by the end of FY2022;
      • Five leased 737-800s will be returned by H1FY2022;
    • LCC business:
      • Strengthen LCC business to capture the growing demand;
      • Establish a LCC network centred at Tokyo Narita Airport leveraging Zipair and LCC partners;
      • Zipair to aim for steady growth as the demand recovers;
      • Third to sixth aircraft to be installed and further addition could be considered;
      • Preparation for service to Honolulu almost complete;
    • Airline related/others:
      • Further strengthen mileage/credit card related business;
      • Establish regional vitalisation business division on 01-Nov-2020;
• Enhancing safety and security:
  • Improve and promote contactless services with a high level of cleanliness;
• Accelerated initiatives for social issues:
  • Address environmental issues and aim to reduce carbon emissions to zero by 2050. [more - original PR]