Sunday, January 24, 2010

Lessons from Japan Airlines

Japanese national flag carrier Japan Airlines (JAL) has recently announced its bankruptcy and requested for legal protection against actions that might be taken by its creditors.

According to Kompas, there are several reasons i.e. JAL cannot pay its debts which totals US$ 25 Billion, tough competition, as flag carrier it should fly unprofitable routes, low passenger occupancy and mismanagement.

This report is very surprising considering that as a flag carrier, JAL obviously can always rely on the fullest support from the Japanese government which is one of the most economically powerful countries in the world.
But the effect financial crisis that plagued the world few years ago seems to be still going on, and the Japanese government has not other choice but to let JAL bankrupted.

At a time when free fight business competition is the rule of the game, I hope that what happened to JAL would make the management of our national flag carrier Garuda to be very careful in managing the company's finance, and make best efforts to improve quality of services so that customers would always love them and other people would want to do the same. Otherwise, other airlines would come and take them away.

16 comments:

colson said...

JAl was breaking news. Especially because the Asin market for carriers is the booming exception to the rule; Maybe Chinse companies are competing on a playing field which has not been leveled yet.

In the rest of the world the situation is alarming.Small companies ( Sobelair, Aloha, Skybus, Easyjet and Ryanair) and large one ( British Airwas, Austrian Airline and Alitalia) in the US and Europe have been struggling to survive for years now. Some in vain. Too much staff, too expensive fuel, declining first class and business class passengers.

Indeed let's hope Garuda has/gets an able, shrewd management.

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H. Nizam said...

Colson,

It seems that international airlines are facing the most difficult time in history.
I hope that Garuda will be able to survive either by itself or jointly with better quality airlines.

H. Nizam said...

GooTAR,

Thank you for dropping by.
Sure, I'll visit your blog.

toshi said...

Oh dear. I firstly thought your post was a hoax until i googled it.

JAL was too good, it couldn't have failed! Moreover so since it is the national carrier of one of the richest countries in the world.

But as a matter of fact, it does. How terrifying.

Oyster said...

Great information, don't worry....Garuda airline very safe...even less the management, each time we fly with Garuda...always give service very good, btw...thks for visited and follow back to our blog, successful for you.

H. Nizam said...

Toshi,

Thank you for dropping by.

What happened to JAL is very terrifying. Who would think
that it can collapsed?

H. Nizam said...

Oyester,

Let's hope that Garuda would always be very careful in managing finance and maintaining quality of services.

umihoney said...

The same has happened to ours before.Lets hope Garuda survive.

H. Nizam said...

Umihoney,

Let's hope so. Thank you for your kind wish.

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Roezer said...

When Japan Starts to Go bust it is very Bad for the World Economy I hope that it Starts to Come back because i am Really Getting Bored of this Recession

H. Nizam said...

Roezer,

Thank you for dropping by, it's been quite a long time.
I also hope that the current global recession will end soon.