Posts tagged JAL

JAL receives far more early retirement applications than planned

The Japanese Kanji for Loyalty

Breitbart: News Article

According to Breitbart, Japan Airline (JAL) has received 4,000 early retirement applications, which far exceeded the intended amount of 2,700 applications.

JAL has been filed for bankruptcy protection by the Japanese government and has determined to cut down its employment cost along with other costs.

“JAL has indicated that its creditors have asked the airline to expand its group-wide job cuts from the originally planned 15,700 over the next three years. It is now considering a plan to cut 16,400 jobs from its current group workforce of 50,000 by the end of March 2011.”

According to Nihon Keizai Shimbun, as the future of JAL became vague, many of JAL employees have volunteered for an early retirement.

In my opinion, this showed one aspect of Japanese business culture. The employees are very very loyal to their company. Unlike other countries with boisterous labor unions, many Japanese workers accepted ‘voluntary’ retirement. However, I have sensed the feeling that not only Japanese worker’s loyalty has caused this. I think that there could have been some ‘forceful’ atmosphere during the ‘suggestion’ of voluntary retirements.

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Advice for JAL

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Just like British Airline, Japan Airline is in a big mess of deficit. Due to global economic recession, the demand for high service, high price seats went down as well as Japan Airline’s profit went down. Here are some of my advice for JAL:

  1. They should cut off high price seats such as business class and 1st class seats. Due to global economic recession, the demand for those seats have went down. Conversely, the demand for lower price seats such as economic seats went up.
  2. They should lower the price as much as possible. As the demand for high price seats went down, Japan Airline must make the seats available for a low price in order to ‘survive.’
  3. They should lower the labor cost. This might lower the quality of airline service, however, it is inevitable during the recession.
  4. They should get rid of unprofitable air-routes. By getting of those unprofitable, money-eating routes, it will significantly help Japan Airline financially. Instead, they should look for cheaper, but effective routes.

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