Mon, Aug 10, 2009
Cuts In International Routes Announced With Loss
Japan Airline Corporation says it has lost a billion dollars
in the 2nd quarter of 2009, and will slash international routes as
a result.
The New York Times reports JAL is making "drastic reductions" in
its fleet and network as demand for air travel contracts. It will
reduce flights on 8 international routes, and cut two others
entirely by late October. Other plans call for re-deploying
smaller aircraft on some international routes in an effort to make
them profitable. The airline's revenue fell 32 percent, to
334.8 billion yen compared to the same period last year.
JAL joins major carriers around the world in slashing routes,
shuffling equipment, and in many cases shedding jobs. Business
conditions were “starkly harsher” than a year ago, the
airline said in a statement, in part because of the flu outbreak in
the spring, which hit leisure travel hard. Oil prices and sharp
reductions in the cargo market have also have played pivotal
roles.
The airline plans to cut the number of flights between Narita
airport of Tokyo and Guangzhou, in southern China, to seven, half
the previous number. Flights between Haneda airport of Tokyo
and Hong Kong will be cut from seven to 3 a week, as will flights
from Narita to Delhi. The airline will also reduce flights from
Osaka to Shanghai and Seoul.
Services between Nagoya and Paris, and Nagoya and Seoul will be
dropped. There are currently seven JAL weekly flights on
those routes.
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