JAL Alters Course, Aims To Scrap 16 Loss-Laden Routes By June

TOKYO (Nikkei)–Japan Airlines Corp. plans to revise its current flight overhaul plans to first eliminate by next June a total of 16 domestic and international routes that are bleeding red ink, The Nikkei learned Sunday.

The beleaguered airline operator, which is seeking business rehabilitation support from the Enterprise Turnaround Initiative Corp. of Japan (ETIC), seeks to discontinue eight international routes, including flights between Narita airport and Mexico, as well as eight domestic routes, such as a link between Tokyo’s Haneda airport and Kobe airport.

JAL’s board is expected to approve the plans this week for submission to the Transport Ministry.

On Sept. 15, JAL submitted a business improvement plan to the ministry calling for the elimination of 50 money-losing domestic and international routes through the end of fiscal 2011. A task force reporting to Transport Minister Seiji Maehara later revised the number to around 45 routes. But with ETIC slated to spearhead the turnaround process, JAL’s plans were sent back to the drawing board.

By presenting a fresh route-reduction proposal, the airline hopes to underscore its commitment to the rebuilding process and quickly draw on ETIC’s support.

(The Nikkei Nov. 2 morning edition)

%d bloggers like this: