JAL dumps Brisbane and Bali in major restructure

Wednesday, 29 Apr, 2010 0

TOKYO – Japan Airlines is slashing its international network by 40 percent, retiring aircraft and closing a number of overseas offices.

Flights on 15 international routes will be withdrawn from the end of September. These include services to Brisbane and Bali from Tokyo’s Narita airport.

The retrenchment includes the retirement of Boeing 747-400 and Airbus 300-600 aircraft by the end of the fiscal year.

The airline said it was making a “bold withdrawal from several overseas regions,” with a “drastic contraction” in the size of operations.

“JAL has restructured its overall network with the clear objective of returning to profitability as swiftly as possible by creating a solid business model that can withstand the fluctuations in economic conditions and by generating profits without overly relying on future traffic demand,” the airline said.

Including changes made in the last year, JAL will end operations on 28 international routes with the closure of 11 overseas bases. Within Japan, 50 routes will be terminated along with eight offices.

While the overall scale of the airline’s international passenger operations will shrink by 40 percent, JAL will expand the use of Haneda airport in Toyko for international flights to maintain a global network with a focus on “pivotal routes” that can yield higher business demand.

JAL plans to almost triple the number of international flights operating from the airport situated in metropolitan Tokyo from five daily flights to 14.

The carrier intends to utilise late night and early morning slots at the airport to launch new routes to San Francisco, Honolulu, Paris and Bangkok.

“JAL aims to construct a well-balanced network by teaming high-traffic services from Haneda to the Americas, Europe and Asia, with its comprehensive connections to regions throughout Japan,” the airline said.

Narita airport will be used as a global hub serving as a link between North America and Asia.

JAL is looking for a boost from closer ties with alliance partner American Airlines. The two carriers are seeking government approval to work more closely in areas such as revenue sharing and carrying each other’s passengers.

by Phil Davies



 

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Ian Jarrett



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