10 years after JAL's bankruptcy. Response to route expansion is an issue. January 19, 0:12

It has been 10 years since the Japan Airlines filed for the application of the Corporate Rehabilitation Law and the bankruptcy of the company occurred 19 days ago. Although we have rebuilt our business with public support, expanding our routes and addressing global warming issues will be an issue for future growth.

Japan Airlines, which went bankrupt 10 years ago on January 19, 2010, received 350 billion yen in public funds and restructured 16,000 employees, one-third of all employees, to rebuild. , Business performance has recovered V-shaped.

However, over the past decade, as air demand has grown significantly, especially in Asia, Japan Airlines has not returned to the level it had before its collapse on both international and domestic routes.

President Yuji Akasaka, who had a press conference 10 years after the bankruptcy, stated that he would increase the number of routes, mainly on international routes, for future growth. I would like to connect with international and domestic networks to develop inbound demand for visiting local areas. "

President Akasaka commented on the response to the issue of global warming, which is a major issue. I work desperately. "

From Bankruptcy to Recovery Is Sustainable Growth a Challenge?

Japan Airlines filed for corporate reorganization on January 19, 2010 and went bankrupt.
This was because the company had many unprofitable routes and did not sufficiently review its high-cost structure and other factors, and business performance continued to deteriorate. Debt amounted to 2,320 billion yen, the largest ever for an operating company.

Reconstruction was promoted with the support of the government, and in terms of finance, the Corporate Revitalization Support Organization established by the government etc. invested 350 billion yen in Japan Airlines using public funds, and a large amount of loan with government guarantee The funding was fully supported by
In addition, we reduced the amount of debt by borrowing more than 500 billion yen from financial institutions.

At the same time, we invited Mr. Kazuo Inamori, the then honorary chairman of Kyocera, to the top management, withdrawing from more than 50 unprofitable routes and restructuring 16,000 people, one-third of all employees. did.

As a result, JAL re-listed on the Tokyo Stock Exchange two years and eight months after its failure, and its business rapidly recovered, with the full 350 billion yen of public funds repaid.

Since then, the company has a net profit of more than 100 billion yen every year. In the last year's financial results, sales were 1,487.2 billion yen and the net profit was 150.8 billion yen.

However, on both international and domestic routes, the number of routes and the number of passengers have not recovered to their pre-bankruptcy levels, and sales volume has fallen by ¥ 500 billion compared to FY2008.
Behind this, there was criticism that Japan's generous support, such as the injection of public funds, at the time of reconstruction of Japan Airlines distorted the competitive environment among airlines, and the Ministry of Land, Infrastructure, Transport and Tourism decided to launch a new route. Has been temporarily restricted.

In an effort to capture the increasing demand of foreign tourists, Japan Airlines plans to expand routes, mainly on international routes, but one of the causes of its failure was having many deficit routes. Therefore, it is important to ensure sustainable growth while securing profitability.

Response to “warming” “human resource development”

The question is how Japan Airlines will respond to various issues surrounding the aviation industry.

One of them is addressing the issue of global warming.
Airplanes that emit more carbon dioxide than railroads, etc., have been given scrutiny, especially in Europe, and the term “flying shame” has been born, meaning that it is embarrassing to fly.

In this context, international regulations are being introduced. ICAO (International Civil Aviation Organization) sets rules on aircraft. Since 2021, the International Civil Aviation Organization will regulate CO2 emissions for aircraft on international flights.

Based on the 2020 emission standard, it should not exceed this amount in the future, and Japan Airlines will promote the introduction of new aircraft with lower fuel consumption than conventional aircraft and consider the use of biofuel. We are in a hurry to take countermeasures.

In addition, labor shortage of pilots and mechanics is also a major issue.
Japan Airlines will open a new route between Haneda Airport and Europe and the United States in March in order to capture the increasing demand of foreign tourists, and in May LCC, a low-cost carrier, Zipair Tokyo in May We plan to expand routes in the future, such as launching flights.

However, in the aviation industry, LCC = cheap airlines are emerging, and competition for human resources such as pilots and mechanics is intensifying, and it is an issue how to promote human resource development and work efficiency. You.

There are also issues that can jeopardize the safety of operations.
In December, after receiving a business improvement order from the Ministry of Land, Infrastructure, Transport and Tourism on the problem of drinking alcohol from a pilot, the problem of drinking continued without interruption, and in October last year we received an unusual second business improvement order.
Thorough measures for safe navigation are required.