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Friday, August 6, 2010

JAL sending executives to AA headquarters to learn from them

According to The Mainichi Daily News, Japan Airlines (JAL) has sent 100 executive staff to American Airlines (AA) headquarters so that they can learn some of the management skills from AA, including their corporate trade secrets!

This was initiated by AA CEO Gerald Arpey when he met with JAL CEO Kazuo Inamori at JAL headquarters back in January. Inamori asked for AA's help on aircraft maintenance and safety management (Asking AA's advice on safety!? Didn't they get warned by FAA recently on their safety practice?). Aprey offered help on 12 fields including finance, procurement, IT and equipment planning.

One major trade secrets JAL learns from AA is their financial analysis system which can instantly display the most effective fund management method over the next 5 years with the inputs of predictions passenger demand, crude oil price, etc. AA claims this is how they survived the air travel downturn after the September 11 attack while other carriers went under. The documentations alone are 10cm thick!!!

According to the report, JAL executives continue to study AA's business methods and are trying to create a new corporate identity through trial and error. Hopefully they will learn all the good stuff and not the bad ones from AA (think about all the downgrade in service and extra add-on charges on tickets!) :P

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