Flights Shift to Subsidiaries
Shanghai Daily | Jul. 05, 2007
Subsidiaries of Japan Airlines Corp, Asia's largest carrier by sales, will boost overseas flights by about 70 percent as they take over routes from the parent company to cut its operating costs.
JALways Co, whose operating costs are about 10 percent lower than Japan Air's, will start flights to Ho Chi Minh City, Vietnam, in August and Delhi in October, said Stephen Pearlman, a Japan Air spokesman. It will boost flights to about 180 a week from 150 by the end of March 2011, he said. The routes are now flown by Japan Air, Bloomberg News reported.
JAL Express Co, which now flies within Japan only, will operate about 70 flights a week to other Asian countries, most likely including China, by the end of March 2011, Pearlman said. In total, overseas flights by the two subsidiaries will increase to about 250 a week from 150.
The changes are part of Japan Air's efforts to cut costs and return to profit after losing 64 billion yen (US$523 million) over the past two years.