JAL pres. rules out specializing in Asia to streamline int'l routes+

LOS ANGELES, April 8 Kyodo -
Japan Airlines Corp. President Masaru Onishi on Wednesday ruled out the
possibility of the carrier streamlining its loss-making international routes by
solely specializing in Asia.
In an interview with Kyodo News, Onishi said JAL, which filed for bankruptcy
protection in January, will decide on which international routes to eliminate
from the viewpoint of profitability rather than region.
Japan's biggest carrier plans to submit a rehabilitation plan to the Tokyo
District Court by the end of June that will entail massive cuts in jobs,
unprofitable routes and aging aircraft as it seeks to turn itself around
through a state-led process using public funds.
Onishi said the company is considering various streamlining measures, including
a recently surfaced proposal to axe a total of around 50 domestic and
international routes instead of an initially announced plan to cut over 30
routes.
''We need to maximize our cash flow in order to fulfill our biggest
mission...to firmly pay back government-backed funds,'' Onishi said during the
interview in Los Angeles.
While aiming to return to profit through drastic restructuring, he emphasized
that JAL plans to maintain its international route network in the United States
and Europe.
''We would do it if withdrawal from Europe and the United States would maximize
our cash flow,'' Onishi said. ''But that's not the case and there is no point
in engaging in that debate.''
In addition to scaling down routes, Onishi said the company will need to expand
its original plan for job cuts -- which includes slashing about 15,700 group
employees and soliciting early retirement from 2,700 employees -- regardless of
which streamlining measure is included in the rehabilitation plan.
The president also said he will ''positively consider'' transferring passenger
terminals for JAL arrivals and departures at airports in London, New York,
Chicago and Los Angeles.
American Airlines Inc. and British Airways plc -- which belong to the same
global oneworld alliance as JAL -- have proposed the moves to make it easier
for passengers to transfer between the flights of JAL and the aviation
alliance's members.
Onishi spoke with Kyodo News during a visit to Los Angeles to attend a
gathering of oneworld executives.
==Kyodo
2010-04-09 00:43:24


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