JAL HOLDING COMPANY AND MAIN BUSINESS UNITS TO INTEGRATE
Tokyo, February 4:The JAL Group announced today that the key elements of the group’s new medium range plan for the three-year period April 2005 through March 2008 would be the unification at the earliest opportunity of the group’s holding company with key business units and a wide-ranging management reform programme. The unification target is by the end of FY2006.
Currently, the main companies in Asia’s biggest air transport group are the holding company, Japan Airlines Corporation, two major airlines - JAL International and JAL Domestic - and a group sales company, JAL Sales.
Following the integration of Japan Airlines and Japan Air Systems (JAS), which took from October 2002 to April 2004, the group has concentrated on enhancing collective strength and corporate value. But this has been negatively impacted by a series of adverse global events: terrorism, the war in Iraq, SARS outbreaks and most recently by record-breaking fuel prices.
In addition, market structure is undergoing change due the low birth rate and the aging society in Japan, JAL’s traditional market. Accordingly the company feels that its medium range business plan must respond to the development of the steadily growing Asia and China markets and airport expansion at the key airports in the Tokyo metropolitan area, Haneda and Narita.
Under a streamlined administrative structure, the new organisation will be capable of flexibly coping with the continued upheaval in the international business environment.
JAL plans to announce more details in March in the full version of the new medium range plan, including drastic business re-structuring, cost structure reform, and measures for increased financial stability.
|JAL REFORM 2005.pdf|