JAL to Scrap Private Rooms at HQ, Cars for Top Executives
Japan Today | Feb. 06, 2007
Japan Airlines Corp will scrap its president's room and private rooms for other board members from its headquarters building in Tokyo and make them work together in one larger office as part of its management reform efforts, company officials said on Feb. 6.
It will also abolish the exclusive use of company-owned cars by its three top executives - President Haruka Nishimatsu, Chairman Toshiyuki Shimmachi and Senior Managing Director Kiyoshi Kishida - and have them basically commute by train, the officials said.
The cost-cutting moves were announced after JAL reported a net loss of 10.8 billion yen for the three months to December. Operating losses shrank to 14 billion yen from 16.6 billion as revenue grew 4.9% to 584.1 billion yen.
"While sales rebounded after last year's decline in the wake of a string of safety problems, higher fuel costs weighed heavily on our profit margins," JAL executive officer Yoshimasa Kanayama said at a press conference.
JAL's fuel bill for the nine-month period was 320.4 billion yen, up 12.8% from a year earlier.
International passenger numbers fell by 5.8% in April-December while the airline saw a 0.3% rise in domestic passengers.