The pay move will affect JAL president Haruka Nishimatsu and some 70 other company officials, a spokesman for the airline revealed. According to reports 17,000 non-executive employees have also been asked to give up their winter bonuses.
JAL asked the state-affiliated Enterprise Turnaround Initiative Corp. for aid as it seeks to avoid collapse amid the global economic recession. Company President Haruka Nishimatsu in September proposed cutting 6,800 jobs and carrying out the biggest reduction of routes in the airline’s history.
Asia’s largest carrier by revenue is struggling to secure fresh government aid to finance its restructuring and is shrinking fast. The restructuring process could take months, however, in part because JAL must negotiate cuts to pension payments with retirees and a group of hostile unions. The cuts in pensions has manifest political implications in aging Japan.
As an aside it appears now that the Japanese government is siding with the Delta-led solution. No surprise really. By splitting the deals this way, Japan gets the highest bid out of both alliances. In our view the state and airline are in cahoots (though we can't prove it). The state knows it must save the airline, and in return the airline must give up something to the state. It seems this "give back" will be to allow the state to decide who gets the airline as an alliance partner. Expect squealing at oneworld - if we see more travel to Tokyo by its current partner airline CEOs you know why. There is just a hint of panic within oneworld at this stage.
In other news --
- The quiet crash
- Aer Lingus says cost cuts are working
- BA and United headed to court
- The Onion does United
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