Thursday February 16, 2012

JAPAN NEWS AND DISCUSSION

What would you like to see happen to struggling airline JAL?

Have Your Say Sep. 15, 2009 - 12:55AM JST ( 23 )

Order by Time Order by Popularity

23 Comments

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ppayneSep. 15, 2009 - 02:48AM JST

Clearly, JAL is Japan's GM. There, it had to be said. Bankruptcy reorg.
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FarmboySep. 15, 2009 - 07:00AM JST

American Airlines is showing some interest in JAL, and that would probably be a better fit than a connection with Delta. I would guess that JAL would be open to such an investment, since on their own it would be difficult to survive at this point. Still, the business environment may be improving a bit, so we'll see.
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mrsynikSep. 15, 2009 - 09:44AM JST

Cut the management fat, cut the fares, improve the onboard service. It's all very simple really.
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BrainiacSep. 15, 2009 - 09:51AM JST

My first instinct was to say let JAL go under but I think that would be bad for the economy and the traveling public. I remember when the Australian government let Ansett go bust years ago, it sent shock waves through the economy that are still being felt.

I was appalled, though, to see the president of JAL and some cute flight attendants on the sidewalk at Yurakucho last Friday practically begging people to fly with JAL. How degrading can you get?

JAL's fate isn't isolated. I would say there are a lot of airlines around the world teetering. But a country needs more than one international carrier. ANA needs competition. But I'm not sure if JAL teaming up with Delta, American or whoever else it is talking to, is the way to go.
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KallyPygousSep. 15, 2009 - 10:07AM JST

Complete privatisation.
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AltriaSep. 15, 2009 - 10:09AM JST

JAL's management is useless. Their restructuring plans are so half washed no bank will touch them. They're getting hosed by the union and huge pension burdens. The product and prices they offer are not what people want. Like the Japanese version of GM, as a previous poster mentioned.

The best thing that could happen is getting bought out by a foreign airline and totally stripped down. The government should give them a prod.
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ratpackSep. 15, 2009 - 11:00AM JST

Keep the prices high and get a few....lower your prices and get most.
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sonnycorinthosSep. 15, 2009 - 11:36AM JST

Get rid of the overpriced fuel surcharge for good, this charge really puts me off the airline, it seems so petty...
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stirfrySep. 15, 2009 - 12:45PM JST

AA wants a piece to leverage it into increased access to china...re-making tokyo into a brief stopover in the process
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timorborderSep. 15, 2009 - 01:53PM JST

Firstly it has to be remembered that JAL is the Japanese flag carrier, and through stock holdings, etc., the government has more than a limited interest in its future. That being said, however, it would appear that the current management team of JAL have little awareness of global realities. As such, over a number of years they have put off restructuring plans and instead used their close relationship with the Japanese establishment to be bailed out again and again. Although nothing has been said publicly, I think the government has become sick of sinking money into this black hole. As such, JAL is now on the ropes.

In terms of what should be done, there needs to be large-scale restructuring of the business. Those non-core businesses that do not benefit the core JAL business need to be wound up or sold off. Greater efficiencies also have to be realized. This means discontinuing unprofitable routes and rationalizing the workforce. Some consideration might also be given to rethinking its product offerings. Back in the day, people (particularly Japanese people) were willing to pay a premium for JAL services, either because they had the money or they were largely ignorant of what price competitiveness meant in the airline industry. These days, however, many people realize that they can get by flying economy class and there is little resistance to the idea of using cut-price ticket services. The result of this is that JAL has seen load factors decrease.

Finally, the current management needs to be shown the door.
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WakarimasenSep. 15, 2009 - 01:55PM JST

Get bought by foreign airline. Best would be BA, Cathay or Singapore. Introduce more reasonable fares. And bigger seats.
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ratpackSep. 15, 2009 - 02:21PM JST

I wonder where Richard Branson is now? Perhaps Virgin will make a last minute bid!!!!!
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BeelzebubSep. 15, 2009 - 07:12PM JST

JAL is not the problem. The word "charter" does not seem to exist in the Japanese language. Where has this country been since the introduction of wide-body jets in the 1970s? Under the control of the ministry of transport and a wealthy Diet member who was the airline's largest individual shareholder, JAL was able to get away with putting a premium on overseas travel for the past four decades. Can anyone blame its main customer base for abandoning it? Now the sky is black with birds coming home to roost. Let's make the punishment fit the crime. JAL's fleet should be sold off to repay its debts, and five 747s left to operate low-cost charters to Honolulu, Hong Kong, Bangkok, Seoul and Los Angeles. Period.
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seesawSep. 15, 2009 - 11:58PM JST

Perhaps Virgin will make a last minute bid!!!!!

Oh yea?..right..and soon JAL passengers will have to speak to their Call Centre located in India, too? Please! (no offence)
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seesawSep. 15, 2009 - 11:59PM JST

FYI: I just had had a terrible experience with the Virgin call centre.
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memyselfISep. 16, 2009 - 12:27AM JST

JAL needs to lower the ticket prices. also JTB needs to go too. actually all Travel companies that has three letters needs to go.
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wontondSep. 16, 2009 - 07:59AM JST

I would have loved to see them drop their fare prices. I'm going to Japan next month and would have liked to fly with JAL, but their fares were too expensive.
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BeelzebubSep. 16, 2009 - 10:22AM JST

Full-fare business class travelers are what kept JAL afloat all these years. Now companies are cutting back on overseas travel and when company executives do fly, more of them look for discounts in tourist class. The carriers that were most dependent on this business are the hardest-hit in the recession. JAL is paying the price of failure to keep up with the times.
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WeaselSep. 16, 2009 - 10:27AM JST

Raise fairs slightly, but make all the seats business class.
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abromofoSep. 16, 2009 - 12:59PM JST

Crumble! Along with every other mismanaged money guzzling Japanese company in existence. Unfortunately it's going to be another 20 years before all the dim-witted gyoza eating oyajis running these companies are retired. The problem is, I see a new generation of mid-30s couldn't-run-a-teddy-bears-picnic Japanese managers beginning to take their places. Oshimai da ne. Nippon teikoku.
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BurakuminDesSep. 16, 2009 - 10:02PM JST

If JAL gets taken over - which is likely - think of all the Japanese who will now refuse to fly because foreign airlines are not "Safety Airlines" like JAL.

I hope they get taken over by Aeroflot.