Flights On 52 JAL Routes Half-Empty Or Worse - Report
October 06 2009 - 6:36PM
Dow Jones News
The average passenger load factor on more than one third of
Japan Airlines Corp.'s (9205.TO) 151 domestic routes was less than
50% between April and July, The Yomiuri Shimbun reported in its
Wednesday morning edition.
Citing sources close to the matter, the paper said the average
passenger load on 52 of the airline's domestic routes fell below
50% during the period, and only 11 of the routes reached 70%, which
is supposed to be the break-even point.
Observers say Japan Airlines Corp. will be forced to cut more
routes than it is currently planning, as the latest findings show
that even JAL's domestic operations, which are supposed to be the
foundation of its business, are producing chronic losses.
Observers also say there will likely be stronger calls for a
review of the government's special account for airport construction
and maintenance.
Of the 52 routes, the passenger load was actually below 40% on
seven routes--including those between Itami and Asahikawa, Itami
and Matsumoto, and Sapporo and Akita.
JAL has already announced it will scrap 29 domestic routes by
fiscal 2011. However, as the plan likely will leave many
unprofitable routes intact, the paper said the government's task
force for the reconstruction of JAL, is expected to make a full
review of the airline's restructuring plan.
-Tokyo Bureau; Dow Jones Newswires; +813-6895-7550