Friday January 15, 2010

Japan Airlines (JAL) to cut 15600 jobs under turnaround plan

channelnewsasia.com :

Troubled Japan Airlines (JAL) is expected to cut 15,600 jobs, or about 30% cent of its group workforce, in 3 years under a rehabilitation plan. The layoffs, coupled with cuts in benefits and wages, will be carried out together with the sale of JAL's subsidiaries including JAL Hotels Co., Kyodo News reported. The carrier's workforce will be trimmed to about 36,000 by the business year to March 2013. The state-backed Enterprise Turnaround Initiative Corp. (ETIC) plans to decide on its bailout package for JAL as early as January 19, the same time the airline is expected to file for bankruptcy protection. The ETIC estimated JAL's consolidated operating loss to expand to about 265 billion yen for the current business year to March 2010, compared with a year-earlier loss of 51 billion yen, due to a drop in passenger numbers.

- Like the GM bankruptcy case, the long decline of Japan Airlines has been noted by outside observers for a long time (see earlier posts dated Feb 2006 and Aug 2006). Traditional airlines have been finding it rather difficult in challenging business conditions in recent years, with increasingly volatile oil prices and a global recession. The rising competition from budget airlines didn't help either. Airlines like JAL and their like will need to revamp and re-invent themselves in order to stay relevant in the economic environment ahread.

See also :

1. More fuel woe for Japan Airlines
2. JAL to cut 4300 jobs under revival plan
3. Japan GDP contracted record 14.2% in Q1 2009 on exports fall
4. Peak Oil, Peak Airlines - as oil prices go up, airlines cut flights and jobs
5. Japan Airlines set to file for bankruptcy on 19 Jan 2010

(2010-01-15 19:44:02 SGT) [Biz] Permalink

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