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JAL encouraged but cautioned.

May 19, 2010

While the International Air Transport Association (IATA) is closely monitoring the restructuring of Japan Airlines, it recently told top management that “tough decisions” will need to be made quickly to cut costs and close the gap with regional competitors. “Japan’s expensive airport infrastructure costs impede improved competitiveness and must also be addressed as part of building a successful future for the company,” said Giovanni Bisignani, IATA’s director general and CEO. IATA fully supports Minister Maehara’s vision to increase the competitiveness of Japan’s air transport sector with more efficient infrastructure, said spokesmen. To turn the vision into reality, however, “urgent action” is needed to address cost issues.

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