Mar 10 1997
JAL FORMS "JAL EXPRESS" AS NEW DOMESTIC SUBSIDIARY
- Airline for regional routes -
Japan Airlines announced today (March 10) that a new domestic subsidiary airline - JAL EXPRESS - operating Boeing 737-400 aircraft would be formally incorporated on April 1.
The new subsidiary is being formed to operate regional domestic routes in Japan and the new company intends to start commercial operations as soon as possible in the first half of FY1998.
JAL EXPRESS will be 100 percent JAL-owned and to start with will operate two 737-400 aircraft. Initial capital is 5.8 billion yen.
As well as operating its own network throughout Japan, JAL EXPRESS will also operate some low-demand flights for JAL under wet-lease contract. The new airline will also study the possibility of entering domestic trunk routes and short-haul international routes.
By early in the next century (2005-2010), the JAL Express fleet could include 15 to 20 aircraft, including aircraft up to the capacity of Boeing 767s, depending on route development.
At first, JAL EXPRESS cockpit crew will be non-Japanese, but Japanese pilots will be recruited and will eventually make up the majority of cockpit crew.
Cabin attendants will be hired on short-term contracts and may perform ground duties as well as providing in-flight services.
Maintenance assistance for the new airline will be provided by JAL and Naha (0kinawa)-based Japan Transocean Air (JTA), which operates 737 aircraft (JTA is 51% JAL-owned).
JAL EXPRESS will contract out airport handling, sales and management roles to Japan Airlines, to create a `slim` structure.