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Home » New is the New New at JAL

New is the New New at JAL

    JAL has made a series of interesting announcements in recent days, which show that the airline is focused on improving its brand, its business model, and its weight in the oneworld alliance.

    I recently reported on Skift that JAL was expanding its partnership with JetBlue, to add a number of critical flights and flight pairs to its service schedule; allowing JAL’s passengers to make connections to key tourist hubs which are not covered effectively by American Airlines, even after the recent merger with USAirways.

    After announcements of improvements to cabins, introduction of many soft comfort features and the release of special menus, JAL revealed that it will open a fully revamped new Sakura Lounge at Haneda Airport. The Lounge areas were designed by award-winning designer Ryu Kosaka, Creative Director of A.N.D (Aoyrama Nomura Design) who has designed interiors, gathering areas, lounges, bars, and restaurants for a number of iconic buildings, residences and hotels including the Mandarin Oriental, Tokyo; the Hyatt Regency, Osaka; and most recently the Palace Hotel, Wadakura.

    And the Lounge areas are quite pretty.

     

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    JAL Sky-View Lounge area at Haneda Airport, image by JAL

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    Entrance to Hall Lounge at Haneda, with happy smiling attendants at desk, image by JAL

    JAL are not afraid to try some quirky promotions to bring passengers in to visit the terminal lounge.  For example, giving away nice Sakura Leaf soap sachets to passengers who visit the Lounge on opening day March 30, and having a limited-edition Temari sushi menu prepared by JAL BED-SKY AUBERGE from March 30 to April 14, 2014.

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    Get it your sushi before it’s gone, as only limited quantities will be available.  Image of Temari sushi by JAL

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    Really very nice looking Sakura leaf soap flakes, though you’d be sad to use them as then they’re gone and where will you be?  Image by JAL.

    All nice, but then a very interesting thing happened.

    Finnair announced that the Japanese government had formally approved its entry into the existing business partnership between JAL and British Airways to share routes and revenue on flights between Japan and Europe, starting April 1, 2014.  No.  It is not an April fools joke.  It is quite serious.  Three oneworld carriers move from just being collaborators in an alliance to actual business partners sharing revenue and cooperating on scheduling and pricing.  As Finnair states in its announcement, this business arrangement will provide the two carriers’ mutual customers “more flexible routing options and an attractive range of fares.”

    If you remember my recent post on Finnair’s Cool New Blue, April 1 is also the day when Finnair will begin flying passengers from Tokyo and New York in those new fresh-decor cabins.

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    Business man looking forward to enjoying green tea served by nice Finnair flight attendant.  Image by Finnair.

    These joint business ventures, however, represent an evolution of alliance partnerships with interesting repercussions.  Are we talking future airline mergers which cross national boundaries and continental divides?   So far, the merger of American Airlines with USAirways, resulting in the “world’s largest” airline has been all the news.  If alliance partners go step-by-step further along the path of joint business collaboration, eventually that step will lead to the rise of a truly global airline.  More on this to come.

    Read More: Comparing Customer Experience Across the 3 Global Airline Alliances, a Flight Chic Special Report on Skift

    For the moment, let’s go back to JAL.

    Yesterday’s JAL Group Medium Term Management Rolling Plan 2014 was an interesting read.  Here are some of the highlights:

    JAL acknowledges that its financial years 2012 and 2013 reflect a period where its “ability to build..high-profitability was tested.”  The airline assures investors that  the financial year 2014 will be “a period of establishing a firm business foundation to achieve ‘growth’ in revenue and profit.”  Further, JAL projects that during financial years 2015-2016 it will: “achieve Management Target and start new growth.”

    This is the set-up for a report on a series of measures JAL plans to undertake to ensure the airline’s long term stability.

    As JAL puts it: “The JAL Group must humbly reflect and learn from its mistakes of the past.  While making well-thought-out plans, we had managed the company without sufficiently reviewing the progress or achievement level of our plans, or analysing or reviewing the results.”  JAL goes on to say that it has reviewed past performance and reviewed its policies to ensure that it can accomplish its targets in the remaining three years of its present turn-around plan.

    The airline lists its goals as follows:

    1. to enable JAL Group staff to reaffirm the direction we are heading for, and to understand our current positioning; and

    2. to demonstrate to customers, shareholders and all stakeholders that the JAL Group intends to keep its promises.

    JAL further specifies its policies as:

    Pursue the material and intellectual growth of all our employees;

    Deliver unparalleled service to our customers; and

    Increase corporate value and contribute to the betterment of society.

    JAL also commits to ensuring “unparalleled services to continuously deliver a fresh and enjoyable travel experience.”

    To that end, JAL issued a separate announcement (yesterday) that it will expand there In-flight Internet Service on Southeast Asia Routes.

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    JAL will provide SKY Wi-Fi on international Boeing 767-300ERs, 777-200ERs and 787s.  The airline announced that it has reached an agreement with Panasonic “to aggressively install JAL SKY Wi-FI” on  these aircraft for Southeast Asia, and “other international routes.”  The SKY Wi-Fi is served by Panasonic’s eXConnect.  This system will be onboard the stated aircraft and routes this coming financial year, which consists of April 1, 2014 through March 31, 2015.

    The service was already installed on international Boeing 777-300ERs flying to North America and Europe from July 2012.

    JAL ultimately intends to expand  the SKY Wi-FI on the Boeing 767-300ERs, Boeing 777–200ERs, Boeing 787s flying to North America, Europe and long-distance Asia routes as well.  The expansion program will be complete, and service available on these extended routes, starting the end of its Financial Year 2014; that is after March 31, 2015.

    Today, JAL announced that it has released “New Guide to Japan Webpages” added to its Guide to Japan dedicated site.

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    Image JAL.

    These new pages present visitors to Japan with guides and information in an engaging manner.  As the airline puts it:

    “Besides giving introductions on Japan’s seasons, cuisine, tradition and subculture in the ‘About Japan’ page, JAL has adopted a humorous tone using eye-catching illustration to describe Japan’s unique customs in a new part of the site named ‘HOW TSU JAPAN’.

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    Image JAL.

    On the “Omotenashi” portion of the site, JAL explains how it “delivers the spirit of Japanese hospitality to its customers in different aspects of its services.”

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    Image JAL.

    Its Japan guide site provides a wealth of tourist information, including a listing of events and festivals.  JAL has even incorporated a social aspect to the site by providing a “Suki!” button for website visitors to vote for their favourite spots.  As an interesting twist, which will surely increase the competition among tourist venues to perform well, JAL use the number of “Suki!” votes earned to rank the tourist spots listed, with those voted most popular appearing at the top of the page.

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    Image JAL.

    All of this activity is added to many previous announcements this year on improved service and product offerings, which include its ongoing  JAL SKY SUITE interiors programs, the most recent introductions of which were on JAL’s 777s flying from Tokyo(Narita) to Frankfurt, due to begin service on April 17 of this year.

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    Nice man reclined enjoying a book on JAL’s extra-wide First Class bed..really roomy enough for a Sumo wrestler.  Image by JAL.

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    Two nice business people retract the retractable privacy partition on their JAL Business Class SKY Suite, to share a toast which becomes the start of a long and beautiful, mutually rewarding, win-win friendship.   Image by JAL.

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    Image of the JAL Business Class SKY Suite bed looking extremely tidy.  Image by JAL.

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    Premium Economy passenger onboard the 777 SKY Suite seems highly amused by man rowing gondola.  Image by JAL.

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    And we can only imagine what this pretty lady sitting in JAL’s SKY Suite Spacious Economy Class finds so funny on her IFE screen.  Image by JAL.

    JAL is literally abuzz with activity, inside and out.  

    Yesterday, the airline announced that, to stabilise its domestic business, JAL and its wholly owned subsidiary JAL Express have agreed to integrate; pending approval by the Board of Directors during their upcoming meeting.  The merger will be effective October 1, 2014.  JEX will cease to exist, JAL will survive.

    In what must have been preparation for this domestic agenda, JAL had already announced the introduction of JAL SKY NEXT enhanced domestic services starting May of this year.  These will go into effect for Domestic 777-200/300, 767-300/300ER, and 737-800s (for a total of 77 aircraft, according to the schedule at the time of the announcement this January 30).

    This domestic service will  include Wi-Fi service powered by Gogo®; and select In-Flight entertainment streamed to passengers PED’s free of charge via wireless LAN, which will feature a sports channel, a gourmet channel, music channels, and anime; as well as a dedicated travel information channel called SKY RURUBU.

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    On SKY RURUBU passengers will be able to get travel and consumer coupons along with destination guides.

    And, naturally, it includes a revamped interiors program which introduces leather seating throughout the cabin, with slimline seats in Economy.

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    A slimmed-down image of the slim-line seats with leather covers on domestic flights.  Image by JAL.

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    The Automotive leather-clad J Class seats on domestic flights will have a 97cm pitch.  Image by JAL

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    Pastel Cabin lighting on domestic flights with baby blue for daytime and girly pink for spring.  Images by JAL

    Domestic First Class (available on some of the airline’s domestic Boeing 767-300ERs), shown here, will start its seasonal service this Autumn.  In all, this will be a total of 9 aircraft according to schedule plans at the time of the announcement.

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    Comfy First Class Domestic seat image by JAL.

     

    Last, but certainly not least, JAL released its February 4 traffic data yesterday.  

     

    I think I’ll let the numbers speak for themselves.

    1.1 JAL Group International Passenger Traffic Data – FY2013 

    Month

    Pax

    y.o.y(%)

    RPK (000’s)

    y.o.y(%)

    ASK (000’s)

    y.o.y(%)

    L/F(%)

    APR – 13

    578,279

    99.8

    2,582,823

    104.5

    3,698,245

    104.5

    69.8

    MAY – 13

    587,529

    97.1

    2,700,281

    100.8

    3,799,832

    103.4

    71.1

    JUN – 13

    615,744

    99.5

    2,897,529

    103.1

    3,762,418

    103.4

    77.0

    FY13 1st Q

    1,781,552

    98.8

    8,180,633

    102.8

    11,260,495

    103.7

    72.6

    JUL – 13

    665,919

    103.7

    3,053,941

    106.3

    3,942,425

    104.7

    77.5

    AUG – 13

    729,552

    104.4

    3,294,846

    106.8

    4,024,572

    105.5

    81.9

    SEP – 13

    670,652

    105.7

    3,078,587

    104.9

    3,862,382

    104.6

    79.7

    FY13 2nd Q

    2,066,123

    104.6

    9,427,374

    106.0

    11,829,380

    104.9

    79.7

    OCT – 13

    662,860

    109.8

    3,100,857

    107.9

    3,945,888

    105.9

    78.6

    NOV – 13

    639,341

    105.1

    2,946,294

    104.6

    3,831,835

    104.5

    76.8

    DEC – 13

    636,987

    101.4

    2,902,255

    100.5

    3,974,503

    102.8

    73.0

    FY13 3rd Q

    1,939,188

    105.4

    8,949,406

    104.3

    11,752,226

    104.4

    76.2

    JAN – 14

    648,564

    104.7

    2,926,438

    104.1

    3,939,968

    101.9

    74.3

    FEB – 14

    597,213

    100.4

    2,720,159

    101.8

    3,496,439

    98.8

    77.8

    MAR – 14

    FY13 4th Q

    1,245,777

    102.6

    5,646,597

    103.0

    7,436,407

    100.4

    75.9

    TOTAL

    7,032,640

    102.9

    32,204,010

    104.2

    42,278,507

    103.6

    76.2

    1.2 Monthly International Passenger Route Traffic Data – February 2014

    Route

    Pax

    y.o.y(%)

    RPK (000’s)

    y.o.y(%)

    ASK (000’s)

    y.o.y(%)

    L/F(%)

    FY12
    L/F(%)

    Transpacific

    139,517

    108.2

    1,044,809

    108.2

    1,290,134

    100.8

    81.0

    75.5

    Europe

    51,809

    105.3

    477,582

    102.6

    585,393

    97.8

    81.6

    77.8

    S.E.A

    225,465

    97.3

    820,478

    94.4

    1,097,050

    98.0

    74.8

    77.6

    Oceania

    14,619

    108.9

    107,541

    108.8

    124,396

    106.6

    86.5

    84.8

    Guam

    12,268

    97.1

    31,264

    95.9

    38,308

    101.1

    81.6

    86.0

    Korea

    66,115

    87.2

    75,745

    89.5

    94,066

    88.1

    80.5

    79.3

    China

    87,272

    105.7

    162,555

    105.3

    266,953

    95.6

    60.9

    55.3

    Total

    597,213

    100.4

    2,720,159

    101.8

    3,496,439

    98.8

    77.8

    75.5

    2JAL Group Total Domestic Passenger Traffic – FY2013 

    Month

    Pax

    y.o.y(%)

    RPK (000’s)

    y.o.y(%)

    ASK (000’s)

    y.o.y(%)

    L/F(%)

    APR – 13

    2,309,460

    101.8

      1,760,896

    100.6

    3,074,956

    102.8

    57.3

    MAY – 13

    2,572,177

    104.5

    1,922,732

    103.1

    3,206,977

    102.5

    60.0

    JUN – 13

    2,478,817

    104.0

    1,847,686

    102.2

    3,162,660

    106.2

    58.4

    FY13 1st Q

    7,360,454

    103.5

    5,531,314

    102.0

    9,444,591

    103.8

    58.6

    JUL – 13

    2,573,440

    101.0

    1,958,816

    100.3

    3,291,001

    101.7

    59.5

    AUG – 13

    3,044,459

    105.2

    2,355,496

    105.2

    3,405,330

    103.5

    69.2

    SEP – 13

    2,805,945

    105.1

    2,154,331

    103.9

    3,088,625

    101.4

    69.8

    FY13 2nd Q

    8,423,844

    103.8

    6,468,642

    103.3

    9,784,955

    102.2

    66.1

    OCT – 13

    2,811,597

    101.7

    2,142,406

    100.2

    3,116,361

    99.7

    68.7

    NOV – 13

    2,754,192

    104.0

    2,066,175

    103.4

    2,984,015

    103.1

    69.2

    DEC – 13

    2,491,599

    108.0

    1,886,464

    107.5

    3,083,924

    102.8

    61.2

    FY13 3rd Q

    8,057,388

    104.4

    6,095,045

    103.5

    9,184,300

    101.8

    66.4

    JAN – 14 

    2,390,997

    108.2

    1,835,887

    107.6

    3,054,048

    103.2

    60.1

    FEB – 14 

    2,244,133

    99.6

    1,722,226

    99.4

    2,579,847

    94.1

    66.8

    MAR – 14

    FY13 4th Q

    4,635,130

    103.8

    3,558,113

    103.5

    5,633,895

    98.8

    63.2

    TOTAL

    28,476,816

    103.9

    21,653,117

    103.0

    34,047,743

    102.0

    63.6

    3JAL Group Cargo Traffic Data – FY2013 

    Month

    International

    Domestic

    Cargo

    Mail

    Cargo

    Mail

    Ton

    y.o.y(%)

    Ton

    y.o.y(%)

    Ton

    y.o.y(%)

    Ton

    y.o.y
    (%)

    APR – 13

    20,773

    100.9

    2,384

    111.3

    31,751

    101.4

    2,278

    104.7

    MAY – 13

    20,917

    105.5

    2,438

    116.4

    31,461

    102.1

    2,380

    111.0

    JUN – 13

    21,698

    103.9

    2,285

    120.7

    30,806

    102.5

    2,410

    102.6

    FY13 1st Q

    63,388

    103.4

    7,108

    115.9

    94,018

    101.9

    7,068

    105.9

    JUL – 13

    22,675

    107.8

    2,254

    115.6

    36,171

    101.0

    2,227

    109.1

    AUG – 13

    22,864

    115.6

    2,374

    121.4

    32,171

    94.0

    2,043

    99.0

    SEP – 13

    22,723

    107.7

    2,529

    124.5

    33,406

    100.3

    2,130

    104.5

    FY13 2nd Q

    68,262

    110.3

    7,156

    120.5

    104,390

    101.0

    6,519

    106.1

    OCT – 13

    24,349

    112.6

    2,871

    130.6

    35,153

    104.9

    2,499

    109.3

    NOV – 13

    24,012

    110.2

    2,814

    123.3

    33,113

    106.7

    2,411

    105.5

    DEC – 13

    22,827

    107.1

    4,047

    118.4

    40,855

    106.0

    2,994

    105.9

    FY13 3rd Q

    71,188

    110.0

    9,732

    123.2

    109,121

    105.9

    7,904

    106.8

    JAN – 14

    21,834

    111.4

    2,733

    122.6

    26,997

    104.1

    2,305

    104.4

    FEB – 14

    19,473

    105.4

    2,272

    106.2

    27,613

    99.7

    2,103

    98.0

    MAR – 14

    FY13 4th Q

    41,307

    108.5

    5,005

    114.5

    54,610

    101.8

    4,408

    101.3

    TOTAL

    244,144

    108.0

    29,001

    119.1

    362,139

    102.8

    25,899

    105.4

     

    With present fuel costs, BELFs (Break-Even Load Factors) are running close to 80% on average; according to airlines.org.  It will be interesting to see whether all this buzz of activity and business realignment by JAL will result in improved Load-Factor numbers.

    The airline specifically references “high fuel costs due to the weak yen” in the management plan released yesterday; stating that its revenue increased primarily in the international passenger market, and from cost-cutting measures.

    JAL indicates that it “expect[s] to achieve an operating profit of 158.0 billion yen..and operating profit margin of 12.2%”.

    It will take further business initiatives to support those profitability targets.  We are therefore likely to see more “New” from JAL in days to come.

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