JAL to introduce first freighter in 13 years under new biz model
Aiming to secure stable revenues by expanding alliances with partner companies
Japan Airlines (JAL) has recently decided to introduce three Boeing 767-300ER Freighter (dedicated cargo aircraft). This will be the first time in 13 years that JAL will operate its own freighter, and operations will begin sequentially from the end of the fiscal year 2023.
JAL has been securing revenues reliably and efficiently in the air cargo business, where demand fluctuates widely, through flexible business operations by using cargo space on passenger flights and chartering other companies' freighters in response to demand. However, with plans for further growth in the cargo and mail business, the company has decided to operate its own freighters.
With the introduction of the freighter, a new business model will be established to ensure stable and growing demand. In addition, the move will strengthen the company's air transportation capabilities to meet the logistics needs arising from the “2024 issue*” and contribute to solving social issues based on logistics as per the official company release. The “2024 issue* refers Shortage of truck drivers in Japan due to the revision of labor regulations as per the release.
Capturing stable demand through a new business model
To capture domestic and international e-commerce, parcel delivery, and other high-growth cargo, the company is slated to build alliances with logistics partners and operate routes that ensure stable demand. In addition, the company will ensure that domestic air transportation plays a growing role in response to the “2024 issue” and limit business risks caused by fluctuations in demand and market conditions.
Improve aircraft utilization ratio and ensure profitability through the hybrid operation of international and domestic routes
From fiscal 2023, JAL will begin operating international flights mainly to East Asia, and in the future operate domestic flights to improve aircraft utilization while maximizing the cargo loading ratio. Furthermore, the company will respond to customers’ needs by flexibly offering charter and non-scheduled flights, cited the official company release.
JAL will continue to contribute to the sustainable development of society through further growth of the cargo and mail business, cited the release.