19-Jan-2011 10:23 AM

Japan Airlines introducing improved yield management; no plans for LCC

Japan Airlines Chairman Kazuo Inamori stated JAL will improve earnings partly by introducing an improved yield management system (The Nikkei, 19-Jan-2011). He added that JAL is not actively thinking about entering the LCC market.

Japan Airlines: "A year ago, most executives didn't understand corporate management; safety was the top priority and profits were of secondary importance. We will introduce a new system by the end of March that allows us to see income and expenses for each route immediately instead of three months later. We will be able to deal with problems the following month. This system will also help cultivate personnel that are good with numbers," Kazuo Inamori, Chairman. Source: The Nikkei, 19-Jan-2011.

Japan Airlines:  "At present, we aren't actively thinking about entering this field (LCC market). I believe that JAL can survive as a somewhat upscale airline. It would be unfair to our rival All Nippon Airways Co if we engaged in a price war after having become stronger through an injection of public funds," Kazuo Inamori, Chairman. Source: The Nikkei, 19-Jan-2011.

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