JAL its FY2017-FY2020 Midterm Management Plan on April 28 2017, the first plan after so-called 8.10 paper regulating JAL under the public-fund rehabilitation terminated, setting a main theme of "To customers worldwide, From region to society,” for which JAL focuses three pillars of transforming JAL into a true global airline, creating new values one step ahead of competitors and continuing sustainable growth.
In the previous FY2012-FY2016 Midterm Management Plan, JAL achieved its original goals of 10% or higher operating margin ratio for five years in a row and 50% or higher capital adequacy ratio as of the end of FY2016.
In the new plan, JAL aims at 1.1 times more sales for the core air transport business than FY2016 and 1.3 times more sales for airline-related and new businesses than FY2016.
For safety, JAL is trying to accumulate safety layers as the leading company of safety in the transport sector, while bearing in mind that” Flight safety is the basis of existence of the JAL Group, and to realize zero aircraft accidents and zero serious incidents.
For customer satisfaction, JAL provides unparalleled service to deliver a fresh and impressive travel experience to every customer, and realize the World’s top level of customer satisfaction by FY2020.
For profitability, JAL aims for 10% or above operating margin and 9% or above Return On Invested Capital (ROIC) by FY2020, which enable it to grow continuously through proactive capital expenditures and effective use of management resources, while maintaining high profitability and strong financial stability established in the previous medium term.
For the international passenger business, JAL is strengthening its networks between North America and Southeast Asia particularly, having an idea to increase ASK by 23% by 2020. Also, using additional slots at Haneda, it will extend its network from Tokyo in 2020.
For the domestic passenger business, JAL has decided to introduce the latest A350-900 on major routes in FY2019 and is improving comfortable flights with the E190 and ATR on local routes. Also, for customer satisfaction, renewal of airport lounges, open of new lounges at five airports and introduction of more onboard Wi-Fi will be anticipated.
