Money-losing Japan Airlines (JAL) earmarked ¥62 billion (US$535 million) yesterday to beef up safety in an effort to win back customer trust after a series of flight problems.
Asia's top air carrier also promised to return to profitability in the upcoming fiscal year.
The revival plan comes a day after JAL picked a new chief executive and president, Haruka Nishimatsu, a finance expert, to replace Toshiyuki Shinmachi.
Restore confidence
Under a five-year business plan through March 2011, Japan Airlines Corp said it will invest in training programs and safety education equipment, set up a new database and strengthen maintenance facilities to restore consumers' confidence.
JAL's image has been badly tarnished by a series of safety lapses since early last year, including wheels falling off during a landing and an engine that burst into flames.
The airline has been reprimanded repeatedly by the government, but the errors have continued in recent months, including an affiliate that took off with a faulty latch and an aircraft that flew with the reverse thruster on an engine still locked.
"Safety and customer satisfaction will be at the forefront of the JAL Group's medium-term business plan," the airline said in a statement, vowing to rebuild its "safety record one day at a time."
Service targeted too
The airline also plans to spend ¥65 billion to improve services such as in-flight entertainment and meals, business-class seat expansions, ways to handle delays and airport systems to provide better service.
JAL said it would expand its low-cost subsidiary JAL Express, but also said it would focus on high profit and growth routes.
The market seemed to welcome the news, with JAL shares rising for the second day, closing at ¥327 (US$2.8), up 0.3 percent. The stock has recently recovered to about the same level at the start of the safety problems early last year.
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