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JAL777
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JAL To Post Another Loss

Thu May 03, 2007 8:50 am

JAL Estimates Loss as It Erases Deferred Tax Assets

Japan Airlines Corp. revised its estimate for annual results sharply downward after deciding to remove 44.7 billion yen ($373.2 million) in deferred tax assets from its balance sheet.

Japan's flagship carrier said it now expects to post a net loss of 16.2 billion yen for the fiscal year that ended March 31. JAL had said on Feb. 6 that it expected to earn a profit of three billion yen for the year.

The loss would be JAL's second in as many years. The company posted a loss of 47.2 billion yen in the fiscal year ended March 2006.


http://online.wsj.com/article/SB1178...9461.html?mod=hps_us_my_industries
 
SKY1
Posts: 611
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RE: JAL To Post Another Loss

Thu May 03, 2007 11:22 am

For sure, better times will come for JAL.

Anyhow ...why does JAL loss money? It seems strange, isn't? They have many potential routes to be profitables.
Time flies! Enjoy life!
 
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Aaron747
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RE: JAL To Post Another Loss

Thu May 03, 2007 11:28 am

JAL is losing money because their passenger numbers are down, they have a bloated network, and their management has absolutely no vision to speak of.
If you need someone to blame / throw a rock in the air / you'll hit someone guilty
 
XT6Wagon
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RE: JAL To Post Another Loss

Thu May 03, 2007 11:31 am

But clearly they need to order those 30-40 A380 that Airbus says they need.

Lol
 
SKY1
Posts: 611
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RE: JAL To Post Another Loss

Fri May 04, 2007 11:04 pm

I don't believe JL will order neither A380 nor 747-8I

Quoting Aaron747 (Reply 2):
they have a bloated network,

Why? May you say why? I don't think JL got a bloated network at least for European or North American destinations.
Time flies! Enjoy life!
 
MP
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RE: JAL To Post Another Loss

Fri May 04, 2007 11:27 pm

Their problem is also their old fleet. Just take a look at their large B747 fleet, which costs a lot of money, as they still operate a lot of conventionals. Furthermore, it seems to me, that their service managment isn't very innovative. They should start improving and inventing new standards and not only wait until another concurrent introduces new service structures, like NH has done last year.

One thing they are starting to do, is giving away some routes to their subsidiary JALWAYS. They already gave up Sydney, Brisbane and Delhi might follow, along with some other asian destinations. It is a money saver for them, as asian crews, like their Shanghai- or Bangkok-based crews are much cheaper than japanese or european crews.

I also heard, that they'll start to move their layover-hotels to hotels which are closer to the airport. Such thing already happened in NY, where they stay on Long Island. The intention was to cut-off the transportations costs.

Some other destinations are also dissapearing, like ZRH.

In my opinion, they should increase their frequencies to India, adding cities like Mumbay or Bangalore to their network. Flying with B777's, they could use those flights to connects more indians to the US West coast. The same way how their Delhi flights work. Most of the people flying on this route connect in NRT on flights to the US or Canada.
 
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Aaron747
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RE: JAL To Post Another Loss

Fri May 04, 2007 11:58 pm

Quoting SKY1 (Reply 4):
Why? May you say why? I don't think JL got a bloated network at least for European or North American destinations.

JAL has a number of regional and domestic routes that don't make any money but are kept on for political pork. There are several domestic destinations from Haneda that have been maintained for years for the sake of justifying a local government's expenditure on a new airport or expansion. This kind of thing isn't unusual in Japan but it's been terrible for the JAL balance sheet since full privatization and the JAS merger didn't help at all.
If you need someone to blame / throw a rock in the air / you'll hit someone guilty
 
Thorben
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RE: JAL To Post Another Loss

Sat May 05, 2007 12:07 am

Quoting XT6Wagon (Reply 3):
But clearly they need to order those 30-40 A380 that Airbus says they need.

Lol

Or maybe they should replace their overly expensive 777s with A340s and make profit like LH or VS do.
France 1789; Eastern Germany 1989; Tunisia 2011; Egypt 2011
 
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teme82
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RE: JAL To Post Another Loss

Sat May 05, 2007 2:12 am

Quoting Thorben (Reply 7):
Or maybe they should replace their overly expensive 777s with A340s and make profit like LH or VS do.

Man. I would like to see A340-300 on JAL livery  Smile
Flying high and low
 
 
VC10DC10
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RE: JAL To Post Another Loss

Sat May 05, 2007 5:03 pm

Quoting Aaron747 (Reply 6):

JAL has a number of regional and domestic routes that don't make any money but are kept on for political pork. There are several domestic destinations from Haneda that have been maintained for years for the sake of justifying a local government's expenditure on a new airport or expansion. This kind of thing isn't unusual in Japan but it's been terrible for the JAL balance sheet since full privatization and the JAS merger didn't help at all.

That's very interesting. Do you have any examples you can name of such "pork flights"? And why is it that the politicians have so much sway over the decisions of JAL, a private company?
 
UpperDeck79
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RE: JAL To Post Another Loss

Sun May 06, 2007 2:10 am

I'm pretty sure that this year will look better now that they are part of oneworld.  Wink
AY and ANA rock!
 
 
ktachiya
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RE: JAL To Post Another Loss

Sun May 06, 2007 6:58 pm

VC10DC10

For instance, JAL used to operate to the old Kita Kyushu airport. That was one of the most pathetic airports that I've known. Only four flights a day to Tokyo and that was it. Do you need an airport when FUK is so close?

I heard some flights from UKB were definate money losers. I mean, how much premium pax fly between peripheral destination to another peripheral destination?

Japan just has WAY too many airports. They should only keep large ones such as CTS, NRT, HND, ITM, KIX, FUK, OKA and forget about the rest.
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airtebiong
Posts: 57
Joined: Sat Apr 28, 2007 6:32 pm

RE: JAL To Post Another Loss

Sun May 06, 2007 7:24 pm

Quoting Ktachiya (Reply 13):
For instance, JAL used to operate to the old Kita Kyushu airport. That was one of the most pathetic airports that I've known. Only four flights a day to Tokyo and that was it. Do you need an airport when FUK is so close?

Will JAL operate to the new Kita Kyushu airport?? Another white elephant IMO, as you've said, FUK is less than an hour away.

Quoting Ktachiya (Reply 13):
I heard some flights from UKB were definate money losers. I mean, how much premium pax fly between peripheral destination to another peripheral destination?

I've heard some airport like Shirahama and Matsumoto aren't faring well either. Shirahama is quite near Kansai while Matsumoto is near Nagano, where there is a shinkansen service!

I haven't heard as of late the status of the proposed Shizuoka airport. Such a waste of money IMO.
i believe that beauty is skin deep, and my skin is very deep!!
 
Carpethead
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RE: JAL To Post Another Loss

Mon May 07, 2007 7:24 am

Quoting Ktachiya (Reply 13):

In case you don't know, the new Kita Kyushu Airport has been running for over a year and Starflyer and JL combine for around 15 flights a day.
Yes the old KitaKyushu airport was pathetic but loads were good on the only HND route and I bet thousand yen that it made money then. Who know now.
Yes, there are airports that are waste of money such as Noto or Date-noshiro Airports but in all most airports do serve their purpose and, saying outside of the major airports you mentioned is a waste, is an exaggeration.
 
VC10DC10
Posts: 675
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RE: JAL To Post Another Loss

Mon May 07, 2007 8:11 am

Quoting Carpethead (Reply 15):

You make some good points. Every airport does serve its purpose. Sometimes it's what you make of it that makes a difference.

If JAL loses so much money on certain routes, it should either drop them or demand a subsidy. That, or figure out a way to justify the losses: e.g., maintaining customer loyalty, connections, improve aircraft utilization, etc.
 
ktachiya
Posts: 1519
Joined: Fri Sep 17, 2004 5:54 am

RE: JAL To Post Another Loss

Mon May 07, 2007 11:26 pm

Yes, Shizuoka airport is a waste of money. Everyone knows that its going to fail before they dig the first pile of dirty

Quoting Carpethead (Reply 15):
In case you don't know, the new Kita Kyushu Airport has been running for over a year and Starflyer and JL combine for around 15 flights a day

I know

And for a fact, the new one is much more reliable in that there is less fog.

But the question is, why are there really really short routes such as Osaka-Matsuyama which can be done by boat, very easily.

Quoting VC10DC10 (Reply 16):
Every airport does serve its purpose

Yes, but it seems like the purpose of all domestic airports in Japan is to connect to HND. I was amazed when I was looking at the traffic at CTS airport. I never reaized that more than 80% of the traffic all concentrates to HND.
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