The beleaguered Japan Airlines (JAL) remains “deeply apologetic” to stakeholders, following the release of the organisation’s latest financial results.
The airline lost a further ¥177.9 billion (£1.3 billion) in the nine months to December 2009, compared to a loss of just ¥1.9 billion over the same period of 2008.
JAL sought government assistance earlier this year, and is presently operating under the direction of the Enterprise Turnaround Initiative Corporation of Japan (ETIC). However, the situation is of acute embarrassment to the airline.
“JAL recognises and is deeply apologetic for the current situation that has caused great inconvenience and concern to our shareholders, financial creditors, customers, suppliers and other related parties,” the airline said in a statement.
“Now, JAL is working fervently with the ETIC under the supervision of the court and court-appointed trustees to draw up an effective corporate revitalisation plan to rebuild the airline, while continuing to provide safe and stable flight operations and services to customers.”
As part of these proposals, JAL last week announced plans to cut employee pay by five per cent and eliminate bonuses for the fiscal year 2010.
Over the nine months to December operating costs at JAL fell by some ¥302.5 billion (£2.21 billion), to ¥1,265.6 billion (£9.2 billion), with cuts in almost every cost category.
Compliance Investigations Committee
Following the release of the financial results, JAL confirmed it will establish a Compliance Investigations Committee (CIC) to examine past business practices at the group. The committee will seek to determine if there were any compliancy issues at the airline, with key findings reported to the appointed Trustees.
The independent committee will be formed by third-party members – including Supreme Court lawyer Saiguchi Chiharu - who will provide professional opinion from a neutral stance in order to “impartially and effectively” assess the JAL Group.
The CIC is expected to begin its work on March 2nd.
The new Democratic Japanese government has also launched an investigation into possible collusion between JAL and the former Conservative administration.