Main Points From JAL's Rehabilitation Plan
Japan Airlines submitted a business turnaround plan on Tuesday that will run until March 31, 2013.
JAL, Asia's biggest carrier by revenue, filed for bankruptcy protection in January owing more than USD$25 billion and pledged a sweeping restructuring under a new board and management.
Below are some key points under the turnaround plan:
LOW COST CARRIER
-- President Masaru Onishi said JAL would consider creation of a low-cost carrier business.
-- To retire 103 aircraft, including all Boeing 747-400s, Airbus A300-600s, MD-81s and MD-90s, out of its fleet of 258.
-- To cut 39 domestic routes, to 109. Focus on more frequent service routes using smaller aircraft.
-- To cut 10 international flights, to 65. Focus on major cities among US, European and Asian routes.
-- Banks to waive JPY¥521 billion (USD$6.16 billion), including Mitsubishi UFJ Financial and Mizuho Financial. JAL said it had JPY¥959 billion in liabilities at the end of March.
-- May try to go public again by 2013.
-- Kazuo Inamori says he wants to step down as CEO in February 2012, a year earlier than he had agreed to when he took the job in January.
-- Company aims to be profitable from first year of plan, with operating profit of JPY¥64.1 billion in the year to March 31, 2011.
-- To cut group headcount by one-third to about 32,600 at the end of March 2011.
-- Sell or liquidate subsidiaries, including selling its hotel business, and concentrate managerial resources on air transport business.