JAL to cut 4,300 jobs

Thursday, 06 Feb, 2007 0

Japan Airlines has announced plans to reduce its workforce by 8% in a bid to return to profit.

JAL made the announcement as it reported a net loss of 10.8bn yen (£45m) in the last three months of 2006.

The airline blamed high oil prices and slow demand and said around 4,300 jobs will be axed over the next three years.

Passenger confidence has been hit following a series of safety issues since 2005, including an engine fire and wheels falling off during a landing.

Although there were no injuries, some concerned passengers switched to rival airlines.

Unveiling its “survial plan” JAL said: “While securing high levels of safety that are the foundation of the company, JAL will carry out business restructuring through aircraft downsizing and shifting to high profit routes.

“JAL will strengthen product competitiveness through for example, the introduction of First Class on domestic flights, and Premium Economy Class on international flights.

” JAL will also implement large scale cost reductions through personnel reductions and other measures and concentrate resources to the core air transport business segment in order to achieve sustainable growth.”

It plans to retire old aircraft and replace them with more economical medium and small aircraft types.

By Bev Fearis

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Bev

Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.

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