Japan Airlines Restructuring

Topics: Restructuring, Government of Japan, Bankruptcy Pages: 1 (293 words) Published: October 25, 2011
Japan Airlines (JAL) is the largest airline in Japan, which is files for bankruptcy protection now. It is one of biggest bankruptcy in Japanese history. The Japanese government decided to take measures to support JAL restructuring.

According to the video (Buerk, 2010), influence by the bankruptcy, many staffs of JAL are to be dismissed, and the company's retirees agreed to cuts their pensions to support the company. The review of McCurry (2010), during the restructuring JAL will continue its operations. The Enterprise Turnaround Initiative Corporation (ETIC) will provide finance support to JAL. While, the restructuring require to lay-off 15,700 people and cut more than 30 routes, and change the chief executive and managers internal the JAL.

Poor governance is one of the most important cause of company bankruptcy, but in the restructuring, i think the better way is cooperative control, the new chief executive can integrate the information who is deeply aware of the company, then making-decision. Unfortunately, JAL facing on the bankruptcy, it will be necessary to reduce staffing and unprofitable routes, while the reduce of pensions may make some people unacceptable. In my opinion, the company can cut the pensions based on the age. The old people are the social vulnerable groups. Their income is limited, JAL can consider separating the retirees by age group then make an appropriate adjustment in pensions.

In general, JAL bankruptcy can not avoid the organizational restructure and personnel adjustment. While humanitarian is also noteworthy. Through the restructuring, the company can rebuild public confidence to win the market.


Buerk, R. (2010) JAL pensioners pay price of company bankruptcy [online]. [Accessed 14 September 2010]. Available at:

McCurry, J. (2010) Japan Airlines files for bankruptcy [online]. [Accessed 19 January 2010]. Available at:
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