Tuesday, January 19, 2010

Tough Times Ahead for Japan Airlines

No news is good news for Japan Airlines at the moment. Well, the company got saved by government fund and for the time being, it is getting a second. However, for this second chance, its workers will have to pay a heavy price. Nearly one third of the workers will lose jobs and this has come perhaps at the worst possible time to them. Japanese economy is suffering badly at this moment. Finding new jobs will become a very big challenge for the workers who will be axed. 31 routes and 53 planes will also have to go from the airlines. So, it is going to downsize its operation.
Enterprise Turnaround Initiative Corp. of Japan is providing the fund and the plan for the survival and turnaround of Japan Airlines. According to the plan, if things go as they are planned then Japan Airlines might see some profit in the fiscal year ending March 2012. Well, I surely like to see that this plan works. Otherwise, things will get even worse for the company after two years.
Many workers will perhaps wonder why their jobs would be axed despite pouring down billions of Yens from the taxpayers’ money.