Annual Report 2005 (60 pages / 1.3MB) - JAL | JAPAN AIRLINES

Spreading New Wings of Trust
Becoming the world’s No.1 airline group in terms of both service quality and business volume
Building a robust business framework that works
under any conditions
The sharp rise in fuel prices is just one of many factors to buffet the aviation industry
now and in years to come. The JAL Group is preparing to deal with these
factors by means of its 2005–2007 Medium-Term Business Plan, which calls for
it to restructure its businesses and costs. The overriding goal is to build a robust
management framework, a business structure which can produce profits even in
the face of factors such as rising fuel costs or slowing demand.
Medium-Term Business Plan: Three Threads
To overcome fierce competition and leverage opportunities
Fuel
Prices continuing at recordhigh
levels
International passenger
operations
External negative factors
persist, recovery underway*
Domestic passenger
operations
Competitive network almost
complete
To restructure in a way to
allow profitability even in
the face of slowing demand
and high fuel prices:
Medium-Term Business Plan: Three Threads
1. Restructure international
passenger operations
2. Revamp cost structure
3. Aggressively develop growth
markets
International cargo
operations
Continuing to invest as
growth continues
* Outlook for FY05 IP demand: 104% vs. FY02, 96% vs. FY00
8 Japan Airlines Corporation