The deeply troubled airline Japan Airlines continues to suffer from major problems. The airline lost ¥177.9 billion in the nine months to December 2009. This is, of course, being compared to the loss of just ¥1.9 billion over the same period a year earlier.
Recently Japan Airlines had to seek out government assistance. Right now the airline is presently operating under the direction of the Enterprise Turnaround Initiative Corporation of Japan. The whole situation for the airline is rather embarrassing.
The airline just recently said in a statement that Japan Airlines recognizes and is deeply apologetic for the current situation that has caused great inconvenience to all shareholders, financial creditors and customers. Now this carrier is working fervently with the ETIC under the supervision of the court and court appointed trustees to draw up an effective corporate revitalization plan to rebuild the airline.
As part of this proposal, Japan Airlines announced plans to cut its employees’ pay by five percent and eliminate bounces for the fiscal year of 2010. Over the nine months to December, operating costs at Japan Airlines fell by some ¥302.5 billion to ¥1,265.6 billion with cuts in almost every cost category.
Japan Airlines confirmed it will established a Compliance Investigation Committee to examine past business practices at the airline. The committee will seek to determine if there are any compliance issues at the airline.
An independent committee will be formed by third party members. They will provide professional opinions from a neutral stance in order to impartially and effectively assess Japan Airlines. It is said that sometimes it takes someone from the outside to see what the problem is on the inside.