Thursday, September 24, 2009
Japan Airlines (JAL) has officially confirmed that it will be undertaking a major cost cutting initiative for the upcoming IATA Winter 09-10 season which will carry forward into the whole of 2010 as well. This includes suspending 24 international routes, some of which that have been operating for decades. The major long haul routes that the airline is seriously contemplating to suspend are Milan, Rome, Sao Paulo and Mexico City.
Suspending MXP in particular I feel is a bad move by JAL. Currently, they fly 4 weekly B 744s on this sector nonstop and is a popular flight with premium passengers. What should be done by JAL is undertake one of the following measures:
Option A - reduce MXP capacity to 4 weekly B 772ERs OR
Option B - fly 5 times per week NRT-DEL-MXP with a B 744 if the bilateral agreements allow it to with full 5th freedom traffic rights. There is big demand from DEL to MXP year round and no airline flies this route nonstop. Cargo revenue too on the DEL-MXP route would be of decent yield for JL.