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Japanese airlines could see ¥1 tril revenue fall on virus pandemic

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Quite sad. I wonder why so many businesses did not save for a rainy day.

2 ( +2 / -0 )

@Tom ... It's normally discouraged in large businesses to hold on to cash, because it's seen as wasteful and a missed opportunity to not use that money to make more money or to reward shareholders. Thus senior management and board members are incentivized to not hold on to cash. For example, a large majority of JAL shareholders are individuals (43%) and foreign companies (24%). Like with other major airlines, JAL has been spending a lot of its annual profits to buy back shares.

Source: https://www.jal.com/en/csr/report/pdf/index_2014_20.pdf

Source: https://www.jal.com/en/investor/library/results_briefing/pdf/fy2019q2_1031en_detail.pdf

3 ( +3 / -0 )

The airlines are overpriced anyway and with that said, there really shouldn't be any reason to strapped for cash. Fuel costs are down yet their prices remain sky high. Not buying the whining or else this company would have pulled the plug along time ago. Its like the farmers always crying that they dont' make money yet they keep doing it year after year for years and same old story. I learned along time ago the ones who cry the most that they are cash poor have the most.

3 ( +3 / -0 )

Buying back shares is to appease the shareholder with dividends and to give big bonuses to the elite leaders for self entitlement.

All said and done, they can essentially run the company into the ground as they are doing now due to greed and not saving at least something for a rainy and they don't care because they got their payoffs. It is the worker and the public that pay the price of the crash.

I am pro capitalism but with a smart attitude to protect.

Corporations need rainy day laws.

5 ( +5 / -0 )

This time last week they were determined to hold the Olympics in July. They kept repeating that it was safe at the moment and it would stay safe till then. How times have changed. Now we're gonna see the tally increase on a daily basis with closer to actual numbers

0 ( +1 / -1 )

Two Japanese flag carriers, JAL and ANA, have decided to reduce domestic flights in the summer by about 20 percent after many events in the country were canceled or postponed.

This is actually an incredibly low number considering the situation. Some airlines in Europe have completely shut down operations for weeks or months. Others have canceled more like 60, 70, 80 percent of flights. I wonder why Japanese airlines are not cutting more flights, to be honest, especially if passenger loads are so low. So many domestic routes in Japan have multiple flights per day, only spaced an hour or two apart at times. Surely there's more space to cut back here.

2 ( +2 / -0 )

Not to worry... while we get peanuts, if anything, the airline will get a massive bailout using our tax dollars, and then they'll also lay off staff and jack up airline ticket costs when things return to normal.

2 ( +2 / -0 )

very little sympathy for a business model that rips people off worse than any other

2 ( +2 / -0 )

When it's all over, I expect a lot of seat sales. Sadly, I don't think that will happen before October, when I hoped to return to Japan for a few months to visit some very nice people.

Someone, anyone, please think positively!

1 ( +1 / -0 )

I dont see a lot people flying in the near future

0 ( +0 / -0 )

The planet will be better off if these planes are kept grounded as long as possible. Can only be a good thing. JAL has already been given massive government bailouts and here they are with their hands out again. If you look at the way that this virus is spreading around the world and consider how it has 8 strains already you will understand that it will be many many months before flying starts again. May as well let these companies fail

0 ( +0 / -0 )

who care, J government will bail them out again, let's focus on the common people here.

0 ( +0 / -0 )

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