Status of Each Division and Issues to be Addressed Next, Chair Akasaka reviewed the status of each division and mentioned issues to be addressed. In international routes, full-year demand recovered to 60% of FY 2019 levels due to an increase in inbound demand from the second half of the year. In order to capture transit demand between Asia and North America via Japan, which is recovering quickly, the company has responded flexibly by setting up connecting flights at Narita Airport and making flexible supply adjustments in response to deregulation in various countries. On domestic routes, a steady recovery was seen mainly in tourism, partly due to the implementation of the “Nationwide Travel Support Program. In response, we set up extra flights and increased the size of our air fleet, and by the GW, year-end and New Year holidays, and spring break, passenger volume recovered to approximately 90% of the FY2019 level. With the progress made toward the Corona convergence, including waterfront measures, elimination of action restrictions, and transition to the new Corona 5 class, the airline is returning to its pre-Corona routine for the first time in three years, especially on domestic routes, “We are already returning to the pre-Corona level. We expect a steady recovery in travel demand in the future,” said Akasaka. In the cargo and mail business, the company is striving to maximize revenues through aggressive supply, while accelerating preparations for new businesses, such as the installation of “JAL MEDI PORT,” a temperature-controlled storage facility dedicated to pharmaceuticals, and high-speed transportation of fresh cargo in international cargo, and a dedicated cargo plane with Yamato Holdings for domestic cargo that will be in operation from April 2024. In the domestic cargo business, the company is accelerating preparations for new businesses, including a dedicated cargo plane with Yamato Holdings that will be in operation from April 2024. In the LCC business, ZIPAIR, which established a medium- to long-haul international LCC business model and achieved profitability, Spring Japan and Jetstar Japan both worked to improve profitability and promoted network building with Narita Airport as a hub. In addition, in the non-aeronautical business, the company has developed a mileage life infrastructure. Partnering with Rakuten Points
JAL has launched services that allow users to use miles in various aspects of their daily lives, including reciprocal exchanges and a new payment service called “JAL Pay”. In cooperation with corporations and local governments, JAL is also working to promote the development of new products and air mobility services that utilize the JAL brand. In terms of measures to achieve carbon neutrality by 2050, JAL will accelerate its efforts in various ways, including reducing its own emissions in line with the CORSIA baseline review, introducing Internal Carbon Pricing (ICP), and collaborating with partners that have new technologies such as synthetic fuels and CO2 capture. emissions through various measures, including the introduction of ICP (Internal Carbon Pricing) and collaboration with partners that have new technologies such as synthetic fuel and CO2 capture. Based on the above, “Consolidated group sales have already recovered to the pre-Corona level in the last fiscal year, and are expected to reach the highest level since the re-listing in FY2023. Operating income also returned to the black last year, and we are planning for 100 billion yen in EBIT, 55 billion yen in net income, and dividends for FY2023, which are higher than last year. In FY2025, the final year of the medium-term management plan, the company aims to achieve sales of more than 1.85 trillion yen and EBIT of more than 180 billion yen.
Excerpts from the Q&A session There were three items on the agenda for the general meeting: the appropriation of retained earnings (Proposal 1), the election of nine directors (Proposal 2), and the election of one corporate auditor (Proposal 3). The following is an excerpt of the main questions from shareholders. First, a question about domestic fares: JAL has completely renewed its domestic fares for April boarding, introducing a simple new fare based on three types (Flex, Saver, and Special Saver), with different savings depending on the earliest purchase date. Shareholders have asked, “Why can’t fares be reduced later?” Why is it so difficult to get a first class seat with a shareholder discount ticket? Why is it no longer possible to change award ticket reservations? The solution sales representative answered, “Basically, it’s because the fare is cheaper after the fare is paid. In response to these questions, a solution sales representative replied, “Basically, the earlier you make a reservation, the cheaper it will be. However, if demand is cooler than expected, we will lower the price to maximize revenue. First class seats are also limited, and the sales representative responded, “We are meticulously controlling seats according to supply and demand, so there are situations in which we are unable to respond to requests. In April, the airline introduced “Award Ticket PLUS,” which can be used with additional miles if seats are available. “Due to the fact that the number of miles required for each flight changes from time to time, we cannot accept waiting lists for available seats or reservation changes,” and in the event of a change, the ticket must be canceled once. On the other hand, he added that it is now possible to use award tickets to book flights on desired dates and flights even during busy seasons such as the Bon Festival and year-end and New Year holidays, which have been difficult to use in the past. The Mileage and Lifestyle Business Manager then responded to questions about the new status program to be launched in 2024. This will allow those who do not fly frequently to earn status by using non-airline services. For those who fly frequently, additional benefits will be offered. In addition to the continuation of the current program, in which points are accumulated based on the number of flights made each year, points will be accumulated in various aspects of daily life, such as sales of goods, financial services, and life services. The new membership conditions and other details will be announced this fall. In addition, there were some who pointed out the frequent system errors, and Mr. Akasaka apologized and said that he would do all he could to fix the problems. In response to a shareholder’s question, “Why don’t you hold some kind of event that will be a catalyst for JAL and make people feel closer to the company? He cited the ongoing Kids Campaign and regional cooperation initiatives as examples, and commented, “We will do our best to energize Japan as a whole through various means. I hope you will have high expectations for us. All three proposals were approved as proposed, and the meeting was adjourned.
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