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Friday, March 5, 2010

JAL considers moving headquarter to Haneda

As part of the cost reduction, Japan Airlines is considering to move its headquarter from Shinagawa to Haneda. This idea has been floating around since January and FNN news once again report this today

The JAL Building, JAL headquarter in Shinagawa was built in 1996. JAL sold it for 650 billion back in 2004 and has been renting the building since then. So the move won't generate any extra income for JAL. The only saving from the move is the rent payment. In fact, it will probably cost JAL more in the short run. If you take a look at the video on FNN's report (at 0:42), the new place kind of look like a dump. Ok it's a bit exaggerated but it needs to do quite a bit of work before JAL can move in to the building. The suggested new headquarter was the old Haneda maintenance building. That's why it looks more like a factory than an office.

So how much this move is going to cost JAL in the short run? With all these special one-time loss, can JAL turn into black in the next fiscal year?

Related Posts:
JAL plans to cut 5% workforce through early retirement
New rumored details of JAL restructuring plan

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