JAL dismisses budget airlines threat

Business Jul. 18, 2012 - 06:45AM JST ( 8 )

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8 Comments

1

Tom WebbJul. 18, 2012 - 08:46AM JST

Again, I see JAL hasn't learned anything. Same ol' "nose stuck-up" as the saying goes in Japan. Same attitude I saw 30 years ago; can deal with NWA, KAL, ANA, PANAM, but not the high and mighty JAL. We'll see how long they will last this time around.
-1

CrystalyleJul. 18, 2012 - 09:42AM JST

Maybe it's the people who haven't learned. NOthing dies in this country unless it's foreign.

I've seen Daiei, JAL, SOGO, and countless other companies all go bankrupt but they're still here.
I saw NOVA go bankrupt too but they're are REALLY gone.

You'll never see the end of feudal lord dominance cause no one recognized it's transition from government to private companies. People are still looking for punch perms and tattoos and for some reason are ignoring the people in suits. Maybe it's the stripes.
2

herefornowJul. 18, 2012 - 09:50AM JST

Its president Yoshiharu Ueki said its revitalization plan was not threatened by the flourishing low-cost carrier (LCC) scene in Japan,

And, unfortunately, for you folks still paying criminally-high fares to fly in and out of Japan, he is right. The tight control on the landing slots by the major airlines, and the fact that Narita cannot open more slots due to the silly noise ordinances so a dozen or so rice farmers can sleep soundly, says the Japan market won't change significantly for decades. That is why so many international flights hub out of Seoul, rather than Japan. Japan is just too damn expensive.
-1

kazetsukaiJul. 18, 2012 - 10:44AM JST

Rates are relative.

Prices are also relative.

Low prices does not mean that it is good or that it is preferred by all.

In transportation, especially air transportation, safety is a primary factor for consideration. With costs rising in all areas from labor to replacement parts, low rates even with huge volumes cannot sustain a safe airline. We must wait and see how the new airline can handle that. I have seen many US airlines and as close to us as in Hawaii, go under because price did not justify volume. It is not like DAISO or UNIQLO. We are not dealing with consumer goods.

JAL even with their higher rates may not survive either. Competition with better service personnel, better in-flight meals, more comfortable seating, etc. plays a lot with the younger and more affluent population. ANA has JAL beaten by a mile in all those areas. The only reason JAL survives is that they have the flight routes and times most convenient for travelers in and out of Japan.
4

marcelitoJul. 18, 2012 - 11:16AM JST

Typical Japan Inc. comment...once JAL has to start playing on an even field instead of enjoying preferential treatment it is receiving now as part of its bankruptcy turnaround deal ( ie. not having to pay same amount of taxes as other airlines) their real business results will speak for themselves. Watch LCC,s eat their market share and profits...just as it has happened in every other country after the LCC,s entered the market. For JAL to be dismissive of them is just pure arrogance that will come back to bite them in the ass.
1

tokyokawasakiJul. 18, 2012 - 11:55AM JST

You can't tell an J-biz exec anything because they stubbornly know everything (in their own minds).. Also, they only care about job security, club memberships, being seen as a good herd member and their title. Whilst shareholder value and competitive advantage is not a group priority...
0

WakarimasenJul. 18, 2012 - 12:48PM JST

They will be bust within the next 3 years......
0

JaneMJul. 18, 2012 - 02:53PM JST

Mr. JAL sounds complacent but we cannot ignore the fact that the baby boomers and their children who are going to retire soon will make the retired population with available time and money for traveling about 25% (or even more) of the nation. (http://www.stat.go.jp/english/data/handbook/c02cont.htm#cha2_2)

Japanese travel companies have been targeting retired customers for some time now (most of these customers use package tours) and will continue to do so because this market has a lot of potential (unlike the market segments of people in their 20’s, 30’s and 40’s.)

While short distance flights are ideal for using LCC, traveling long-haul with an LCC is something which few senior citizens are willing to try and I guess that this will be one of the main reasons for companies like JAL to keep their prices. Comfort, competitive in-cabin services and good meals are factors which should never be ignored, especially when we think about elderly customers.