Japan Travel Trade Weekly News
Keeping you abreast of what's going on in the
Japanese travel and tourism industries.
News consolidated by Travel Vision, Inc. updated every week.
"It's only a start," Says JAL CEO Nishimatsu, Commenting on Positive
Restructuring Results, Eyeing Expansion of Tokyo Metropolitan Airports
Mid-March 2008
The JAL Group released its Medium Term Revival Plan for
FY2008-2010, focusing its business efforts on a foundation capable of
stable growth with a view to the expansion of Haneda and Narita
airports.
Since February of last year, the Group has carried out the
FY2007-2010 Medium Term Revival Plan focusing on fleet renewal with
more fuel-efficient aircraft and fleet downsizing, 'Premium'
strategies and a further reduction of the personnel costs.
As a result, FY2007 is expected to post an operating profit
exceeding the 35 billion yen target originally set. The newly
established FY2008-2010 Revival Plan will further strengthen the
group strategies and, by taking into consideration recent changes in
the business environment that reflect soaring fuel prices and fierce
competition in the airline industry, the JAL Group aims to achieve
its operating profit of 96 billion yen for 2010, an increase of 8
billion yen compared with the FY2007-2010 Plan.
The JAL Group also decided at its board meeting on February 29 to
issue to 14 companies including 5 financial institutions preferred
shares by means of third-party allocation to increase the capital in
the net amount of approximately 151.5 billion yen. The increased
capital will be budgeted to enhance its financial strength and speed
up the fleet strategy.
During a press conference held on February 29, Haruka Nishimatsu,
President and CEO, Japan Airline, mentioned, "We are on a right track
to recovery," citing that the business restructuring is steadily
progressing. "Finally, we are emerging from difficult times and ready
to succeed by taking various courses of action," said CEO Nishimatsu
with his strong conviction for aggressive strategies.
The JAL Group will also implement group-wide cost reform,
expanding service by the Group subsidiary airlines. Currently,
JALways (JO) and JAL Express (JC) weekly operate 25% of the
international flights.
By the end of 2010, these subsidiary airlines will fly up to 38%
of the international flights. JAL Express and J-AIR, which presently
operate daily 25% of the domestic flights, will increase the share to
41%. By company, JALways will expand business traffic routes in Asia
as well as international leisure traffic routes. While JAL Express
serves nation-wide routes with small aircraft, it will also operate
international routes by Boeing B737-800 focusing on China from FY2009.
In view of the foreseen expansion of the metropolitan airports,
the JAL Group will concentrate its management resources on high
profit and high growth routes to develop new business markets by
putting new aircraft Boeing B787 into service.
From Haneda, the airline group will increase short-haul
international flights including late evening and early morning
charter flights. From Narita, the Group will also vigorously expand
business traffic routes including Asia and Russia.
Having said that, the JAL Group concluded, "The most important
thing for customers is that 'there is air service available' also on
regional domestic flights. By introducing small-size aircraft for
regional routes, the airline group would like to maintain and even
expand the routes which have been so far unprofitable."
EVA Air Aims to Increase Osaka/ Los Angeles Service with Various
Strategies to Maintain Profitability
Mid-March 2008
EVA Air (BR), launching a Kansai/ Los Angeles route on March 30,
already intends to increase its flight frequency from the initial
weekly frequency of 3 flights, carefully considering its load factor
and yield.
The airline's Osaka branch office which confirmed the intention
is highly motivated to boost the route expansion in the future. The
airline aims to attract both leisure and business traffic targeting
an 80% seat load factor.
"We are the only airline to serve the Kansai/ Los Angeles route.
Should it become unavoidable to lower the air fares because of market
conditions, we would not offer drastically cheap fares," EVA Air
said. The airline intends to promote Elite Class with a cabin comfort
between Business and Economy class, attaching more importance to the
profitability of the new route.
Presently, travel agents are making many inquiries mainly about
group travels, but the airline anticipates that "Business traffic
demand should pick up last minute."
EVA Air plans to station its cabin crew base in Osaka. 40 flight
attendants will be newly recruited to serve the routes with a crew
complemented by 4 to5 Japanese on every flight.
Viva Macau Eyeing on Service to Nagoya Soon; Ambitious Goal to Serve
Other Cities Under Open Skies Agreement
Mid-March 2008
Michael Newcombe, general manager, Viva Macau (ZG) visited Japan
recently and indicated at a press conference that he is contemplating
a start-up of scheduled service to Nagoya in the near future. The
proposal is based on the new Macau/ Japan Open Skies Agreement which
lifted the capacity restrictions on flights between Macau and all
Japanese cities except the Tokyo Metropolitan region.
"Viva Macau will be adding more aircraft to its fleet as we are
confident about the effect of the Open Skies," said Newcombe and
added the airline is evaluating possibilities of serving Sapporo,
Osaka and Fukuoka besides Nagoya.
In reference to the suspension of the biweekly scheduled charter
service between Narita and Macau from January 12, 2008 due to
extended maintenance requirement, he gave a prospect for the future
that this sort of problem will be avoided as the airline is
aggressively bringing additional aircraft into service.
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