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Friday, August 28, 2009

JAL restructuring plan

Japan Airlines has released details of its upcoming restructuring plan in October. As expected, there are a lot of subsidiaries and units merging aim to improve customer experience, efficiency, competitiveness, and most importantly to save $$$.

Formation of the Customer Experience Division
As the name suggested, this unit is to oversee the customer experience. It is responsible for maximizing JAL's value to its customers by setting JAL basic policies and strategies and coordinating with different divisions.

Streamline business units by 25%
JAL will streamline its Corporate Planning, Passenger Marketing, Cargo and Mail, Flight Operations, Engineering, Airports and Human Resources units by 25%. This will result in speed up in decision making and minimizing overhead costs.

Merging different units
JAL Sky
JAL will merge three of its airport-related services subsidiaries (JAL Sky Services, JALSky Tokyo and JALWave) into a single company - JAL Sky. (By the way I haven't even heard of JALWave before, according to its website (japanese only), it is responsible for load control)

JAL Engineering
As announced earlier, JAL will merge the 4 aircraft maintenance companies into a new subsidiary - JAL Engineering, which will begin operation in October.

Travel-related Subsidiary
JAL will merge its travel-related subsidiaries (JALPAK, JAL Sales, JAL Sales Western Japan, JAL Sales Kyushu, and JAL Sales Hokkaido) into a single unit. This is to "strengthening the group's overall travel sales and planning capabilities". (In other words, this is to suck as much money from you guys as possible LOL) But the press release does not mention the name of the new unit. Please call it JALPAK LOL

Source: JAL Press Release

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