Japan Airlines: A glimmer of hope?

November 6, 2009 § 1 Comment

Japan’s most dominant airline company, Japan Airlines (JAL) has been in the news quite lately regarding the lax management of  top executives. Most of us can conclude that JAL did not have the ability of taking control in the long-run.

One critical reason of what JAL is experiencing is the excessive wages the company pays for their workers. The retirement payments they offer, for example. An average salary-man would receive about 3 million yen at the start of the retirement, but when it comes for JAL, they would offer the double, 6 million yen. The amount of money JAL provides may be appealing to the workers who have been employed, an in addition, this was a risk factor that an executive has forecasted; however, this should have been reconsidered.

As we have inspected the problem of JAL, they should not only consider trying to cut-down their expenses, but they should be learning from the best airline companies in the world. First, the amount of retirement payments should be greatly reduced. From my perspective, I can only see that the company has been falling slant due to greediness. Overall, the method of management should be diversely different; a new manager who can think in the long-term should be in the seat.

§ One Response to Japan Airlines: A glimmer of hope?

  • bie11 says:

    Hey Natsuki! Your advices are going to be very helpful. Cutting down costs shows that the ticket price is elastic. It might be more helpful than increasing business class seats and such.

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