DATE: January 19, 2010
ATTN: Travel Manager/Arranger/Travelers

Japan Airlines (JAL) filed for bankruptcy yesterday, planning a restructuring process that will shrink Asia’s top carrier and its presence around the world.  The airline is planning to cut approximately one-third of its workforce, reduce pensions for retired staff, cut routes, and shift to more fuel-efficient aircraft as part of its restructuring.  JAL has stated that its flights will continue uninterrupted during this restructuring time period.

There is no word yet from the airline regarding the fierce tug-of-war between Delta Air Lines and American Airlines for a slice of JAL’s business.  Despite the airlines woes, JAL’s access to Asia is a mouthwatering prize for foreign airlines.  Delta is attempting to lure JAL away from American’s OneWorld alliance to join Delta’s SkyTeam.

This bankruptcy represents a humbling outcome for Japan’s once-proud flagship carrier which was founded in 1951 and came to symbolize the country’s rapid economic growth.  The state-owned airline expanded quickly in the decades after World War II and was privatized in 1987.  However, JAL’s passenger traffic has slowed during the global economic downturn, swine flu fears, and competition from Japanese rival All Nippon Airways.  The airline is burdened with growing pension and payroll costs, as well as a network of unprofitable domestic routes it is politically obligated to maintain.

Travel One has already contacted all of our travelers booked on JAL who are affected by this information.  If you have any specific questions about future travel on JAL, please contact Travel One.

Travel One will continue to keep our clients informed of news and information that may affect their corporate travel program. Please contact your Travel One reservationist at 952-854-2555 or 1-800-245-1111 for the most current travel information.