Bankruptcy 10 years, expansion route again? Where is JAL on January 21 20:45

Japan Airlines 10 years after its bankruptcy. At that time, the need for a rebuilding business with the support of the government, including the investment of 350 billion yen in public funds, sparked great debate about the need. Some feared that even if they forced to prolong their lives, they would fail again, but the company had begun rebuilding and aiming for the next stage. How has Japan Airlines changed in the last 10 years? And where are you going? (Neil Kato, reporter of the Ministry of Economy)

How do you break away from “Master Hinomaru”?

"Not only the management team, but also the employees, there was a lack of ownership, sense of responsibility and lack of sense of responsibility, as well as management. It's a system that's incredible ”(President Akasaka)

Japan Airlines president Yuji Akasaka looks back on the last decade. The company went into bankruptcy on January 19, 2010 after applying for the Corporate Reorganization Law. The total debt was 2.32 trillion yen, the largest ever for an operating company.

With the generous support of public funding, the government has withdrawn from the deficit line and restructured 16,000 people, one-third of its employees.

In addition to voluntary retirement, there was also the pain of laying down the job. A second bankruptcy is unacceptable--along with the shrinking business size, another step forward was reforming the corporate structure.

In the past, Japan Airlines had a long distance between management and the site, and management was far away for employees. He also said that different departments, such as pilots, cabin attendants, and mechanics, were more likely to be separate companies as if they were separate companies. Kyocera founder Kazuo Inamori was invited as chairman to improve the company's structure, saying that it would not be possible to revive it without fundamentally changing this corporate structure.

The pillars are "amoeba management," which divides employees into small groups to clarify profitability, and "reform of consciousness," which gives each employee a sense of ownership and a sense of unity as a team. The cabin attendants who knew the time of the bankruptcy said that the reforms had instilled cost awareness.

"I was conscious of the weight of shampoo and cosmetics in my luggage, so I reduced the luggage so that I could lighten the aircraft a little and save on fuel costs. Write down how much paper cups I use in the cabin, I wrote my name on what I used and stopped using it. "(Mr. Takahara)

As a result of these efforts, business performance recovered to a V-shape. Two years and eight months after the bankruptcy, it relisted on the Tokyo Stock Exchange and repaid its public funds. Training for awareness raising is still ongoing. However, on the other hand, during interviews, some business partners and others have stated that "the parent Hinomaru's constitution is not yet complete."

Expansion route again! ?

Japan Airlines withdrew from more than 50 unprofitable routes after its collapse. The business scale was reduced by 40% on international routes and 30% on domestic routes. In fact, ten years after the bankruptcy, the number of routes has not returned to the level it was before the bankruptcy.

In the background, Japan Airlines has been conducting business with a focus on profits rather than scale.However, due to the reconstruction of the country with the generous support of the country, the establishment of new routes, etc. was temporarily subject to practical restrictions. Have been hung.

Over the past decade, the situation surrounding the aviation industry has changed dramatically. LCC = Cheap airlines are emerging. The number of foreign tourists has soared, reaching 31.88 million last year, almost quintuple in 10 years.

In this situation, rival ANA has steadily expanded its routes. Japan Airlines, which started as a domestic airline operator, is now significantly different from Japan Airlines in the number of international flights.

Will Japan Airlines continue to "reduce and balance" as it is? President Akasaka said at a conference held ten years after the bankruptcy that he would aim for "gradual expansion of routes." In the past, unprofitable routes were one of the causes of bankruptcy, so the strategy is to gradually expand routes while taking into account the ever-increasing demand of foreign tourists, while steadily identifying routes that can be profitable.

On international flights, more than 10 new routes will be opened from March, mainly on flights connecting Haneda Airport with Europe and the United States. In addition, the company has entered the LCC market, where prices are low. Starting in May, Zipair Tokyo aims to open up new markets as a long-haul LCC, one of the few in the world. Domestic flights are still less than they were before the bankruptcy, but they plan to increase the number of foreign tourists to attract locals.

Innovation is key for next growth

However, it is said that the "profitability" consciousness that has been thoroughly penetrated in the past 10 years has adversely affected the future growth.

"The company has now moved from reconstruction to the stage of growth. However, there is not enough human resources in the company to create new values ​​or take on new challenges. To achieve sustainable development, What is missing from the current company is how to develop human resources. "(President Akasaka)

For this reason, the “Innovation Lab” was launched. It is an "experimental ground" for gathering human resources with ideas from young employees beyond departments, such as cabin attendants and mechanics, and searching for "the next move." AI = We are working on the development of new services using artificial intelligence, the latest communication technologies such as 5G, robots, and the like.

With VR (virtual reality) equipment that is being jointly developed with venture companies, you can simulate a trip to Hawaii. If you wear special goggles, you will not only be able to hear images and sounds but also feel the scent of local flowers, as if you are walking on a sandy beach in Hawaii.

The device is also equipped with a fan and a device that blows out mist, so that you can feel the waves and wind according to the image approaching the seaside. The aim is to create a new travel demand for those who want to actually go to Hawaii.

On the other hand, robots serving customers at airports are remotely operated by airport staff using controllers. You can also talk with customers through the camera and microphone attached to the robot. With the shortage of workers, the company wants to provide a flexible working style, such as teleworking employees working remotely.

Has Trust Regained?

10 years after bankruptcy. Did JAL recover its performance and recover its lost trust? It happened with a question mark. It's a series of pilot drinking problems. The Ministry of Land, Infrastructure, Transport and Tourism issued an unusual second business improvement order to Japan Airlines last October.

President Akasaka said, "I felt that the trust of society was gradually restored in the process of regeneration, but I lost my trust. I will never forget it and I will continue to work hard. "

Also, don't forget the 35-year-old Nikko Jumbo crash. One of the bereaved relatives in the interviews complained about the drinking problem, saying, "I think there is a loosening of consciousness over time."

When Japan Airlines officials looked back at the decade of bankruptcy, they often talked about the phrase "return of the crane." This means contributing to society without forgetting to thank them for their support in the event of a bankruptcy. Currently, half of the employees have joined the company after a bankruptcy, and almost all employees have no direct knowledge of the crash of a jumbo aircraft. That is why we must never forget the past and the "crane's return".

Ministry of Economic Affairs reporter Neil Kato Joined in 2010 Joined Shizuoka Bureau and Osaka Bureau Currently in charge of MLIT