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Wednesday, April 21, 2010

Inamori says NO to deeper job and route cuts

After disappearing from the media for a while, Japan Airlines' new CEO Dr. Inamori speaks up once again. During his first interview as JAL CEO, he said he refuses to cut more jobs or routes!

Inamori san re-iterated the fact that JAL failed because of the way the previous management ran the company. He said the ex-government officials who managed JAL were running it as if it were a government agency. He wants to revive JAL because it "represents one industry of Japan" and reviving JAL is "necessary for the Japanese economy and for society."

Inamori san right now is facing deep pressure from the Japanese bankers and the government to extend the cost cutting measures. Japan Transport Minister has asked JAL for more route cuts (boooo!!!) and the bankers won't give JAL further financial support without a restructuring plan that they are satisfied with. But Inamori san is standing firm with his belief and wants to stick to the original plan, which only involves around 16,000 job cuts and 16 international route suspensions! But this won't be easy. Even Inamori admitted that they are in some fierce negotiations with the bankers and government right now!

"It is true that I am faced with a difficult decision, and I am struggling with it as I speak. Syndicated banks and government tell me we need to do more by drastically reducing more flight routes and jobs," said Mr. Inamori. "I am trying to keep the reduction level as planned." (The Wall Street Journal)
Why does he have to stay firm? Because he wants to do the right thing. As a Buddhist monk, he wants to do the right thing in life and as well as in business. That's admirable but will the bankers share the same view?

Take care Inamori san. From what I read on a separate Japanese media report, Inamori is working almost full time instead of 2-3 days a week as he planned. He has also lost some weigh after taking over this challenge. Hopefully you can resolve these as soon as possible.

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