Opportunities and Challenges for Japan Airlines
December 6 - 7, 2012
Agenda
1. JAL Update
2. Product Update
3. Summary
4. Appendix
2
Japan Airlines: A Quick Introduction
• Japan Airlines (JAL) flies to more than 85
destinations in almost 20 countries and
territories. The airline has provided
international service between the U.S. and
Japan for over 58 years.
• JAL is a key travel partner with numerous International companies
including many Fortune 500 companies. The airline currently holds
agreements with 65 of the top 100 Corporate Travelers by air volume*
• Posted net profit of US $2.4 Billion for 2011 Fiscal year (Apr ’11 – Mar ’12)
US $1.2 Billion for 1st half 2012 (Apr ’12 – Sep ’12)
• Facilitates global trade by operating 22,000+ flights a month, and has
been expanding its International Network with San Diego, Boston, &
Helsinki.
* Booked in the USA as ranked by Business Travel News – September 2011 edition
3
Updates for 2012
• FH12 net profit was 1.2bil USD (Apr – Sep 2012)
• Re-listing of shares in Sep 2012
• More competitive cost structure, best practices
• #1 airline in world operating profit for 2010, 2011
4
787 Updates for JAL Schedules
• BOS-NRT service commenced Apr. 22
• SIN-NRT from Oct. 28, 2012
• SAN-NRT service from Dec. 2, 2012
• HEL service from Feb. 25, 2013 (scheduled)
• Also MOW, BJS in 2012
• 1st carrier to utilize 787 in USA
• JAL has 65 787’s on order (45) option (20)
5
Government Challenges
• Visa entry requirements
• Security issues
• High aviation taxes and fees
• Lack of recognizing the value of foreigner visitors
6
Specific Airline Challenges in the Future
• Rising fuel costs and the vision for an alternative
• Added competition from airlines and growing
alliance networks
• Low cost carrier growth worldwide
• More government regulation and taxes
• Joint business and alliance evolution--how will
business be done
7
New Route Summary
Boston = Tokyo Nonstop
All times are local
Flight Schedule
Flight No.
Operation
JL007 /
AA5921
Daily
Boston
11:50
Tokyo (Narita)
15:30 (Next day)
JL008 /
AA5922
Daily
Tokyo (Narita)
11:40
Boston
10:00
San Diego = Tokyo Nonstop
Launched: December 2, 2012
From March 1, 2013, JAL will increase the frequency to once daily.
All times are local
Flight Schedule
Flight No.
Operation
JL065 /
AA5907
Mo, We, Fr, Su
San Diego
11:30
Tokyo (Narita)
16:30 (Next day)
JL066 /
AA5906
Mo, We, Fr, Su
Tokyo (Narita)
17:10
San Diego
9:45
*All flights operated by Japan Airlines; codeshare by American Airlines. *All flights/schedules are subject to change.
Joint business route with
8
JAL’s Tokyo Narita Hub: San Diego’s Gateway to Asia
Same Day Connectivity at Narita to:
Beijing
Seoul
Taipei
Manila
Singapore
Hanoi
Shanghai
Pusan
Kaohsiung
Bangkok
Hong Kong
Ho Chi Minh City*
Overnight Stay in Tokyo Required for:
Strong Japan Domestic Connectivity too:
Okinawa, Osaka (Itami), Fukuoka,
Sapporo, & Nagoya
More connections via Tokyo Haneda
Airport
Guangzhou
Jakarta
New Delhi
Dalian
Kuala Lumpur
All Schedules Subject to Change
* Codeshare Flight. JL operated Flight requires overnight stay
9
JAL Summary
• Financial reorganization successful
• Post-earthquake recovery strong
• JL/AA joint business evolving very well
• 787 introduction on Apr. 22, 2012 BOS-NRT
• New SAN-NRT Dec. 2, 2012
• Well positioned for future
10
Q Appendix
Additional Information
About JAL
http://www.ar.jal.com/arl/en/
• Seat Name:
JAL SUITE
• Configuration:
1-2-1 (8 seats)
• Bed length:
Approx. 78.5 inch (199 cm)
• Max. Bed width: Approx. 33 inch (84 cm)
• TV screen size: 23 inch
Features
• Excellent functionality with a sense of luxury
in one of the largest First Class spaces
available in the skies today.
• Refined woodgrain finishing that evokes
an ambience similar to that of a personal study
or bedroom.
• Newly-introduced liquid-crystal (LCD)
touch-panel hand-held controller.
13
Sample meals
• Seat Name:
JAL SKY SUITE
• Configuration:
2-3-2 (49 seats)
• Max. Bed length: Approx. 74 inch (188 cm)
• Max. Bed width: Approx. 25.5 inch (65 cm)
• Width at base:
Approx. 21 inch (53 cm)
• TV screen size: 23 inch
Features
• A highly-private space with plenty of legroom,
furnished with a fully flat bed and a host of
first-class amenities and functionalities.
• Unobstructed aisle access for every seat.
• Large swivel table for more flexibility in
movement and ample storage space for
various items.
• Partition can be electronically lowered to chat
with traveling companion if you wish.
Sample meals
•
•
•
•
•
Seat Name:
Configuration:
Seat pitch:
Seat width:
TV screen size:
JAL SKY PREMIUM
2-4-2 (40 seats)
Approx. 42 inch (107 cm)*
Approx. 19 inch (48 cm)*
12.1 inch
Features
• A substantial increase in seat pitch (distance
between the seats) by as much as 4 inch (10 cm),
providing more leg-space than ever before.
• Increased seat-slide by up to approx. 2.8 inch (7 cm)
• 12.1 inch personal touch-panel TV screens are 35%
wider than previous Premium Economy product and
one of the widest in its class.
• Retained the fixed-back seat feature of its
predecessor, providing the same undisturbed space
even when a passenger seated in front reclines.
• Center divider between seats at head-level to provide
greater privacy.
• Three-step adjustable footrest.
*Specifications for front-row seats are different.
JAL’s 787 – Executive Class
Experience the Ultimate in Japanese Hospitality
Designs are subject to change
http://www.jal.co.jp/jal_panorama/787_kinai/
JAL’s International Network
Boeing 787: Future service introduction status
- Tokyo (Narita) – Singapore, JL719/712,JL711/710
14 services a week will operate from Narita from the 28th of October, and departing
Singapore from the 29th of October.
Helsinki
Boston
San Diego
Schedule and aircraft types are subject to change without notice.
Q Haneda Map
1. Domestic Connectivity
2. Travel Opportunity Cost Savings
First Class and Sakura Lounges
Narita Airport – Terminal 2
Lounges offer 4,000 square
meters of space
•
•
Menus will be adjusted to reflect
the changing flavors of the
seasons
•
Stylish bar-areas include a
bartender to serve a wide
selection of drinks
•
Private shower rooms
Massages by a resident
professional masseuse
(advanced reservations required)
•
Equipped with high-speed
wireless LAN connection for
Internet access
•
•
Features a Children`s Playroom
for families
Pacific Joint Business with AA
• JL and AA Partners across the Pacific
• More options for the customer
• Harmonized pricing and discounts
• Joint contracting
• Earn AAdvantage miles on JL flights
• SAN-NRT flight complies with “Fly America” rules if
ticketed on AA
Thank You for Your Partnership!