Japan Airlines names new president from Feb-2012

Japan Airlines (JAL) named Yoshiharu Ueki, current senior managing executive officer and a former pilot, as the company’s new president, following a board meeting on 17-Jan-2012, as reported by Kyodo and The Nikkei. As previously reported by CAPA, Mr Ueki will replace Masaru Onishi next month, almost a year after JAL completed bankruptcy proceedings. Mr Onishi will become chairman of the company, while current chairman Kazuo Inamori will become chairman emeritus. Mr Ueki described the planned relisting of the carrier, which could occur by Sep-2012 according to local media reports, as “a key point” of the restructuring.

You may also be interested in the following articles...

• New Denver-Tokyo 787 service to help boost United's sagging trans-Pacific performance
  23-May-2012

  United’s plans to launch new flights from its Denver hub to Tokyo Narita Airport in Mar-2013 with its 219-seat Boeing 787 comes at fortuitous timing. While North Asia-North America traffic has been growing, primarily at the behest of Asian carriers, United is the best positioned of US carriers to take part in this growth since it achieves the highest trans-Pacific yields. Combined with anti-trust immunity with Japan's All Nippon Airways (ANA), which is already showing benefits, and United's market leading position in the US, United will be able to grow the market.

  Yet trans-Pacific yields are the lowest international ones for United, as it is with other US carriers. The trans-Pacific market does not have the strong corporate and leisure base of Europe or the VFR traffic of Latin America. With yield growth being more limited, the 787 will help the bottom line with its step change in efficiency, reducing costs. United will certainly not be the last carrier to take advantage of changing competitive dynamics.

• Japan Airlines' 17% margin may be envy of the industry, but JAL's outlook is less upbeat
  18-May-2012

  Japan Airlines, with its recently achieved 17% operating margin, may be the antipode to Warren Buffet’s advice about investing in airlines, but JAL is not in an entirely enviable position. The forthcoming entry of low-cost carriers, if initially small in number, will soon have a seismic affect.

  While JAL is so far more assiduously managing this new prospect than is competitor All Nippon Airways, it is showing signs of buckling.

  Despite FY2012 offering growth and recovery from the tsunami and earthquake-affected FY2011, JAL projects profit to decrease. Recent months show JAL is growing capacity ahead of demand, which when combined with LCC proliferation will suppress profits in a doubtful market. JAL’s euphoria of a stellar year after its remarkable emergence from bankruptcy may be shortlived, for reasons beyond its control.