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

More documents

Recommendations

Info

Spreading New Wings of Trust Becoming the world’s No.1 airline group in terms of both service quality and business volume 2005–2007 Medium-Term Business Plan #2 Revamping our cost structure The second restructuring initiative called for in the 2005–2007 Medium-Term Business Plan is on the cost side. It can be broadly divided into two categories: structural reforms that will yield ongoing benefits and emergency measures such as cutting salaries and general expenses. In fiscal 2005, emergency measures will contribute more than structural reforms, but as the effect of the structural reforms gradually make themselves felt we expect a ¥75 billion impact in fiscal 2007, growing to more than ¥100 billion. 12 Japan Airlines Corporation
Growing and Continuing Impact of Structural Cost Reforms Details of cost restructuring Cost restructuring includes four primary categories: reductions in personnel expenses, elimination of unprofitable routes, review of administrative processes and group outsourcing, and lowered sales costs. The impact of these actions will grow from ¥37 billion in fiscal 2005 to ¥58 billion in fiscal 2006, thence to ¥75 billion in fiscal 2007. Details of cost restructuring Effects of revamping cost structure continue to grow ¥100 billion or above ¥75 billion Personnel cost efficiencies ¥58 billion Modify or eliminate unprofitable routes Review third-party contracts and administrative processes ¥37 billion Reduce marketing costs through use of on-line technologies Asset review/debt reduction FY05 FY06 FY07 FYxx Structural cost reforms and emergency measures Achieve annual benefits of ¥75 billion from restructuring by end of medium-term business plan period Improve bottom line, primarily through cost efficiencies ¥100 billion or above ¥37 billion ¥58 billion ¥75 billion ¥43 billion ¥13 billion FY05 FY06 FY07 FYxx 13
Page 1 and 2: Japan Airlines Annual Report 2005 Y
Page 3 and 4: JAL GROUP OVERVIEW Comprising 288 s
Page 5 and 6: MESSAGE FROM THE GROUP CEO REVIEW O
Page 7 and 8: We will carry out the Medium-Term B
Page 9 and 10: much less unaffected. Moving ahead,
Page 11 and 12: Vision: What JAL Group strives to a
Page 13: Managing international passenger op
Page 17 and 18: Segment-by-Segment Strategies for G
Page 19 and 20: Basic Management Strategy Basic ini
Page 21 and 22: Revenue analysis: international pas
Page 23 and 24: Revenue analysis: domestic passenge
Page 25 and 26: Related Operations Many Group compa
Page 27 and 28: MANAGEMENT’S REVIEW AND ANALYSIS
Page 29 and 30: Consolidated total stockholders’
Page 31 and 32: Net cash used in investing activiti
Page 33 and 34: Liabilities and stockholders’ equ
Page 35 and 36: CONSOLIDATED STATEMENTS OF STOCKHOL
Page 37 and 38: Thousands of U.S. dollars Millions
Page 39 and 40: e. Property and equipment Property
Page 41 and 42: Proceeds from sales of securities c
Page 43 and 44: The significant components of defer
Page 45 and 46: 11. Commitments and Contingent Liab
Page 47 and 48: . Operating revenues from overseas
Page 49 and 50: CONSOLIDATED SUBSIDIARIES Japan Air
Page 51 and 52: JALPAK INTERNATIONAL MICRONESIA, IN
Page 53 and 54: JALUX LIFE DESIGN INC. OFFICIAL FIL
Page 55 and 56: MOSCOW 4th Floor, GALS Tower, 1st T
Page 57 and 58: International Routes Domestic Route
Page 59 and 60: INVESTOR INFORMATION Company Name:

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

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?