Nikkei reports that Japan Airlines (JAL) is working on its medium term business plan in preparation for its relisting on TSE later this year. They held a special shareholders meeting earlier and revealed what were on their minds. Part of the plan was to increase international capacity by 25% by fiscal year 2016. Below are the highlights of their plan:
- 25% growth in international seating capacity by FY 2016
- Open new routes to North American and European destinations to attract business travelers
- Strengthen partnership with foreign airlines
- Make use of the state-of-art 787 and reduce the use of large aircraft
- Expect 2% decline in domestic passenger traffic
- Target to maintain 100 billion yen operating profit per fiscal year even under severe business environment
- Boost ratio of consolidated operating profit to revenue to 10% or more
- Boost capital adequacy ratio to 50% or more
jiji.com also mentions JAL is reviewing retirement plans of large-size aircraft Boeing 777-200. I am assuming they were referring to the 777-200ERs currently used on international flights not the 777-200s on domestic ones. It will be sad to see 777-200ERs to go but they aren't currently serving that many destinations. Some of them are even scheduled to be switched to 787-8 later. By retiring the larger 777s, JAL can make sure of its fuel-efficient mid and small sized aircraft to improve profitability.
So what do you think of their rumored plan?
[UPDATE]
Nikkei has revealed more details of this medium term business plan which includes more plan orders and new routes. You can read more about this here.
[UPDATE]
Nikkei has revealed more details of this medium term business plan which includes more plan orders and new routes. You can read more about this here.
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