Japan Airlines announces corporate restructuring

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A new corporate organization structure was announced today by Japan Airlines (JAL), which aims to improve passenger experience, consolidate intermediary functions in order to improve productivity of t

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A new corporate organization structure was announced today by Japan Airlines (JAL), which aims to improve passenger experience, consolidate intermediary functions in order to improve productivity of the group’s business practices, and to increase efficiency and competitiveness. The new structure will take effect beginning October 1, 2009.

A brand new Customer Experience Division has been established to centralize the planning-functions involving the hardware, software, and human-relation aspects of customer satisfaction. This division will lead the coordination between Passenger Marketing, Airport, and Cabin Attendants divisions, managing the analysis, planning, implementation, and feedback stages in the process of maintaining and improving all aspects of customer service. It will set the basic policies and strategies in maximizing JAL’s value to customers and coordinate closely with the Corporate Safety Division to forge a strong foundation for safe operations and customer satisfaction – the highest priorities of the JAL Group.

The restructure has also streamlined numerous intermediary functions within the organization in order to speed up decision-making processes that will strengthen the group’s overall efficiency, as well as to minimize the back-end and overhead costs, which is a measure in line with JAL’s cost-reduction plans. Reorganizations were made to the Corporate Planning, Passenger Marketing, Cargo & Mail, Flight Operations, Engineering, Airports and Human Resource divisions, as well as the general administrative departments within each division. Subsequently, the number of function groups within the company will be reduced by almost 25 percent.

In the continuous pursuit of higher efficiency and improvement in operational skills through shared knowledge, the reorganization includes a merger of three of the group’s 100 percent-owned subsidiaries that provide airport-related services – JAL Sky Services Co., Ltd.; JALSky Tokyo Co., Ltd.; and JALWave Co., Ltd. – forming the new company, JAL Sky Co., Ltd. This is in addition to the announced merger of JAL’s 4 aircraft-maintenance companies that will result in the new JAL Engineering Co., Ltd. slated to start operations from October 2009. Another amalgamation of the 100-percent, JAL-owned, travel-related subsidiaries JALPAK Co., Ltd.; JAL Sales Co., Ltd.; JAL Sales Western Japan Co., Ltd.; JAL Sales Kyushu Co., Ltd.; and JAL Sales Hokkaido Co., Ltd. is aimed at strengthening the group’s overall travel sales and planning capabilities.

With the clear objective of improving profitability and securing sustainable growth in the future, the JAL Group will continue reviewing its business model and implement necessary changes that will strengthen and rebuild its business foundations.

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