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JAL Group Medium Term Management Plan – Rolling Plan 2019 Announced

February 26, 2019 Aviation No Comments Email Email


Japan Airlines (JAL) today released the updated version of the company`s Medium Term Management Plan – Rolling Plan 2019.

To start, Rolling Plan 2019 will focus on concrete actions in response to the Business Improvement Order issued by the MLIT in December 2018. The order was issued in relation to a series of alcohol-related incidents and the Company is determined to act swiftly to rebuild the foundation for a safe and secure operational structure. To meet the expectations of our valued customers, JAL will work ever harder to enhance service levels and make contributions to society in an effort to restore public trust and increase the company`s corporate value.

Building on the current achievements made during the JAL Group 2017-2020 Medium Term Management Plan subtitled Challenge, Leading to Growth, the Company will solidify our organizational goals during Rolling Plan 2019 and accelerate actions to prepare for FY2020, the final year of the plan, in an effort to achieve the long-term targets specified in the Grand Design.

1. Positioning and Direction – Summary of the 2019 Plan

Rebuilding Safety and a Sense of Security
In addition to taking measures to prevent the recurrence of similar acts stated in the Business Improvement Order, the Company will inspect the JAL Group thoroughly from a safety perspective and rebuild the foundation of the company; including the improvement of the corporate culture and human resources development.

Restoring Public Trust and Increasing Corporate Value
The Company will prepare for functional improvements at Haneda and Narita airports scheduled in FY2020, contribute toward the country`s target to welcome 40 million inbound visitors by 2020, and support the Olympic and Paralympic Games Tokyo in 2020. Furthermore, JAL will continue to take initiatives to create new values, develop human resources and solve social issues.

2. Key Initiatives (FY2019-FY2020)

Network Expansion
– Prepare for functional improvements at Haneda and Narita airport scheduled in FY2020
– Expand partnerships with global airlines to serve 500 cities by FY2020 – Grand Design
– Continue to refine the full service carrier business, create new market demand with the launch of the mid to long-haul LCC carrier, further develop partnerships with Japan domestic and short-haul LCC partners; with the goal to deliver and meet the needs of diversified customer groups, while strengthening JAL`s business portfolio

Further Enhance and Innovate New Products and Services
– Provide a stress-free travel experience through improved products and services
– Realize smart airports through self-service check-in machines, introduce self-service baggage drop areas, promote Fast Travel by utilizing face authentication services to improve the airport experience

Expanding Business Domains
– Develop and cultivate growth businesses by leveraging JAL’s assets, knowledge and customer base
– Cooperate and work with partners outside the aviation industry to create new values

HR and Technology
– Train and nurture professionals that will lead to the development of the aviation industry
– Use labor-saving technology to automate company work style, promote innovation through partnerships and enhance productivity of staff

ESG Management and SDG Initiatives
Categorize social issues into four basic areas; the Environment, Customers & Regions, Human Rights, and Diversity & Inclusion and Governance. The carrier will create social values through specific business activities to tackle SDGs

3. Update on JAL Management Target

Safety

– Implement specific measures to Rebuild Safety and a Sense of Security
– Strengthen measures regarding falling aircraft parts and airport security checks

Customer Satisfaction

(*1 Net Promoter Score – Questionnaire to measure the customer`s intent to recommend a service)

– Improve basic product and service quality, including on-time operations
– Improve operability of website and app products

Finance

Continue to enforce a profit-focused management style and emphasize lean management practices to achieve targets in years to come



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