JAL Announces New Organizational Structure and Change of Executive Officers

The JAL Group (JAL) resolves to achieve a swift corporate recovery without backsliding and in its progress forward, JAL today announced a change in its organizational structure. In order to realize an effective and speedy revitalization, JAL aims to create a leaner financial constitution that firstly fulfills the condition of maintaining the highest levels of safety in its operation, and will put in place a new organizational structure including a change in the board of executive officers from December 15, 2010.

1. Organizational Change
In this new organizational structure, each department will have to take full responsibility for their respective business’ functionalities. To realize this, all departments will be classified as a profit generating unit (Managing Division of Route Marketing, Managing Division of Passenger Sales, and Cargo and Mail Division) or a business support unit (Flight Operations, Engineering and Maintenance, Cabin Attendants, Airport Operations, and other general management divisions) and the corporate foundations of JAL will be built on the profitability of each of these units. All unnecessary layers and redundant functionalities will be abolished to speed up the decision-making process within the company, in order to sensitively react and adjust to the ever changing environment.

The newly established Managing Division of Route Marketing will work closely with other business units to formulate the Route Profitability Plan, and is responsible to ensure execution of the plan to achieve target profits.

The Managing Division of Passenger Sales will be task with creating sales strategies based on the business plan generated by the Managing Division of Route Marketing and will be held accountable for the profitability of various channels such as sales to agencies, corporate clients, direct sales as well as regionally.

Cargo and Mail Division will continue drawing up corporate plans mainly based on the utilization of belly space available on the Group’s passenger flights, and remains an integral part of the JAL Group as a business unit answerable for both revenue and profit.
Operational units such as flight crew, cabin attendants and airport staff will continue striving to safeguard customer satisfaction through safe flight operations and quality service. Other general management divisions which include Corporate Planning, Purchasing, Human Resources, newly formed divisions – Corporate Control, Finance and Accounting, General Affairs, and Group Companies Support, will jointly support the entire corporation to bring about a strong enhancement to the overall management capabilities and operational efficiency of JAL Group.

2. New Executive Appointments
A review of the current board of executive officers was conducted to better define responsibilities and increase motivation so as to realize an effective organizational reform as described above. Newly assigned executives, as listed in the table below, will take office from December 15, 2010.

The appointed executives, together with each and every staff in JAL Group will strive in unity, day after day, to continue providing valued customers with the highest levels of flight safety and air transport services. At the same time, JAL Group will fervently pursue the soonest possible attainment of a complete recovery of its business, and may further fine-tune the organizational structure as well as review the Group’s lineup of Vice Presidents.