TokyoTomo Travel Guide

Kazuo Inamori, who on February 1 officially became Chairman of Japan Airlines, said in the news conference given on the same day that the airline aims for its rehabilitation without any loss of time while attaching overriding importance to the safety of its flight operations. When asked about the future of JAL and its management strategy including a choice of its foreign alliance partner, he said that he was not yet ready to give his definite comment on the issue since he just assumed his duties as the chairman. Although he is admittedly a layman for the airline industry, he expressed his confidence, from his long experience in managing companies, that the rehabilitation of Japan Airlines should be fully feasible if the turnaround plan is implemented without fail with the support of the Enterprise Turnaround Initiative Corp. of Japan (ETIC). Acknowledging that the airline is still hampered by a bureaucratic corporate culture, Masaru Onishi, JAL’s new President, pledged that the airline shall break with the past, eliminating drastically its high-cost organizational structures and other negative legacies, adding that it is the airline’s last chance to make a turnaround and, accordingly, each and every employee shall make a concerted effort to rebuild the company as a new airline.

According to President Onishi, JAL’s future strategy to be implemented includes “drastic renewal of aircraft fleet,” “strong, yet flexible business operation system” and “intensive investment of available resources,” which, he believes, will help JAL to re-merge as one of the world’s leading and powerful airlines. Also, Chairman Inamori said, “The most valuable asset for a company is its employees’ minds,” adding that Japan Airlines aims to reform the present organizational structures which are cynically criticized as being bureaucratic and at the same time to foster a corporate culture that encourages the employees to stay within the JAL Group and to be ready to join forces to realize the company’s rehabilitation. Chairman Inamori further mentioned, “A basic principle for any corporate management is to increase revenues and reduce costs.” “I therefore want to change the minds of its executives and the entire workforce to become conscious about accounting of profit and loss.”

Also, in response to the comment made by Transport Minister Seiji Maehara that the international flight operations can possibly be consolidated into one, Inamori, JAL’s new Chairman, argued that a Japan Airlines without international flights is unthinkable for many Japanese customers. Quoting his friend who emigrated to Brazil as saying “I feel like being back in my old country whenever I fly JAL. It’s my heart and soul and I hope that JAL will, by all means, maintain its international flights,” Inamori demonstrated his eagerness to rebuild the airline in such a way that it grows both in international and domestic flight operations. Commenting also on the relationship with its rival All Nippon Airways, he said that he should not hope only for JAL to enjoy prosperity, but hopes for a mutual growth through friendly competition with its rival ANA.

Meanwhile, shortly after JAL applied for bankruptcy protection under the Corporate Rehabilitation Law, there seemed to be some concerns about degrading of its brand image and possible troubles involving safety of the flight operations. However, as Inamori said, there was no confusion whatsoever and, in fact, Japan Airlines enjoyed its excellent passenger loads thanks to a heart-warming encouragements received from all concerned.

Source: Travel Vision

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