Relax - Flights on 52 JAL routes half-empty or worse

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Flights on 52 JAL routes half-empty or worse

The Yomiuri Shimbun/ ANN | Thu, Oct 8 2009

JAL has already announced it will scrap 29 domestic routes by fiscal 2011.

Flights on 52 JAL routes half-empty or worse

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The average passenger load factor on more than one third of Japan Airlines' 151 domestic routes was less than 50 per cent between April and July, The Yomiuri Shimbun learned Tuesday.

According to sources, the average passenger load on 52 of the airline's domestic routes fell below 50 per cent during the period, and only 11 of the routes reached 70 per cent, which is supposed to be the break-even point.

Observers say Japan Airlines Corp. will be forced to cut more routes than it is currently planning, as the latest findings show that even JAL's domestic operations, which are supposed to be the foundation of its business, are producing chronic losses.

Observers also say there will likely be stronger calls for a review of the government's special account for airport construction and maintenance.

Of the 52 routes, the passenger load was actually below 40 per cent on seven routes--including those between Itami and Asahikawa, Itami and Matsumoto, and Sapporo and Akita.

The passenger load exceeded 70 per cent mainly on routes used by tourists, such as those between Haneda and Miyako, Haneda and Ishigaki, and Itami and Naha.

Passenger loads from 60 per cent to 69 per cent were seen on 22 routes, and from 50 per cent to 59 per cent on 66 routes.

The average load on all routes was 56 per cent during the period, down 5.3 percentage points from the same period last year.

JAL has already announced it will scrap 29 domestic routes by fiscal 2011. However, as the plan likely will leave many unprofitable routes intact, the government's task force for the reconstruction of JAL, which is under the direct control of construction and transport minister Seiji Maehara, is expected to make a full review of the airline's restructuring plan.

Maehara has said the ministry will also review the special account, funded by landing fees paid by airlines and used for airport construction and maintenance.

Observers point out that more route cuts and a review of the special account will greatly affect the income of local governments in which airports are located.

-The Yomiuri Shimbun / Asia News Network