Japan Airlines to cut 1200 jobs by March 2010

Japan Airlines plans to cut around 1,200 jobs in 2009-2010, as a cost-cutting measure.Currently, the airlines’ headcount is 47,500, which is 3.4 per cent lower than the number of employees on board, in fiscal 2008.

The airline said that it posted a net loss of 63 billion yen for year ended March 31, 2009, and now it plans on cutting 1,200 jobs by March 2010 from a staff of 47,500.

Japan Airlines senior vice president Yoshimasa Kanayama explained the reason for the move, “Looking at the economic slump, the company is cutting down costs by reviewing all the divisions.”

The airline said that the passenger traffic on its international routes fell by 12.4 per cent, while passenger traffic on domestic routes fell by 1.8 per cent.

“As demand for air transport weakened due to the effects of the global financial crisis, the JAL Group’s core business of air transportation, and its other airline-related and travel-related businesses sustained sharp declines in earnings,” the company said.

The airlines plans to cut costs to the tune of 50 billion yen ($512 million), in 2009, by cutting back on salaries and overhauling operations.

Japan Airlines has forecasted a 63 billion net loss and sales of 1.75 trillion yen for fiscal 2010.

As a measure to boost efficiency, JAL had announced, in January 2009, that it will be cutting more than 1600 jobs by March 2010.

Posts vacated by those who retire will not be filled and the hiring will now be reduced at the group firms.

If still there are no positive monetary results then the airline also plans to offer voluntary retirement packages.

Japan Airlines has laid off almost 10,000 employees since 2005, and has witnessed a major reduction in the number of travelers since the recession hit the economy.