New management vows to rebuild JAL, maintain int'l routes+

TOKYO, Feb. 1 Kyodo -
The newly appointed chairman of Japan Airlines Corp., which recently filed for
bankruptcy protection, vowed Monday to rebuild JAL as a stronger and leaner
company but emphasized that the carrier will continue to operate international
routes.
The newly launched management team headed by Kazuo Inamori, the founder and
honorary chairman of Kyocera Corp., is tasked with turning around the
debt-ridden airline through massive restructuring of jobs, loss-making routes,
and aircraft while its operations keep running with the help of public funds.
''I can't imagine JAL without international routes,'' Inamori, a 78-year-old
entrepreneur with a track record of rebuilding struggling firms, said at his
first news conference as company chairman.
''I believe JAL's revival is possible as long as it steadily implements the
current rehabilitation plan,'' he added.
While admitting he is a novice in the air transport industry, Inamori said his
responsibility is ''huge'' and added that JAL's revival would also help to
revitalize the sluggish Japanese economy.
With JAL sharply scaling down its operations, attention has focused on whether
the company would keep operating international routes, especially on the back
of fervid interest from overseas airlines to gain access to lucrative Asian
routes.
Masaru Onishi, who was appointed JAL president Monday, said the new management
team will examine from scratch alliance talks with U.S. carriers American
Airlines Inc. and Delta Air Lines Inc.
In view of future revenue benefits, speculation had been rife that the Japanese
carrier would form a business tie-up with Delta and switch to the Delta-led
SkyTeam global airline alliance from the current oneworld grouping led by
American Airlines.
''Instead of being tied to previous discussions, we are currently debating the
issue from scratch under the new management,'' Onishi, 54, told the same news
conference. ''Our position is neutral.''
Onishi did not elaborate on a timeline for the discussions, but Inamori
emphasized that a conclusion will be reached as soon as possible.
Under an outline of JAL's rehabilitation plan unveiled by a state-backed
turnaround body, the airline will aim to boost its revenues and return to
profitability in the business year through March 2012.
Inamori said the business plan is slightly ''optimistic'' and left room for a
review in the future. But he added JAL will trim wasteful spending without
putting safety at risk and reform its corporate culture to focus more on
calculating profits and losses like other ordinary private firms.
Onishi, who is also the chief operating officer, admitted JAL continued to be
reliant on the government even after it was fully privatized in 1987 and was
weighed down by a high-cost structure.
''We are going to mark a break from the past and fulfill this last chance for
revival that has been provided to us,'' Onishi said. ''We are going to be
reborn as a new JAL with a globally top-level, robust structure,'' he added.
==Kyodo
2010-02-01 23:56:10