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Press Conference (October 04, 2013)
JAL held a press conference on October 04, 2013.
The President's greeting is posted as follows:
Yoshiharu Ueki
President
Thank you for coming here today.
The reason we asked you to come here today is to explain JAL's views and response regarding the allocation of additional international flight slots at Haneda airport, announced on October 2 by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT).
As stated in our Press Release of October 2, JAL will proceed to formally seek from MLIT a rational explanation of the reason behind this allocation and a correction in the allocation. As part of this procedure, we submitted the proposal for rectification etc., and request for disclosure of Administrative Documents to the Minister of MLIT and the Director-General, Japan Civil Aviation Bureau (JCAB). We requested a prompt reply.
Now, I would like to receive an explanation in tangible form.
As mentioned in the Press Release, our letter requests an explanation for the reason for this allocation, as well as a rectification, and disclosure of relevant administrative documents.
JAL received a capital injection from the Enterprise Turnaround Initiative Corporation of Japan (ETIC) in its corporate reorganization proceedings, and through our relisting, we were able to repay the full amount without any loss, and took the path as a genuine private company.
We have never forgotten the support from the customers and many other parties. It is their support which underpins our business, and I would like to express my deepest appreciation again to everyone.
Ever since our bankruptcy to this very day, we have continuously put in efforts to rebuild the company, upon receiving approval from the competent authorities, that is, MLIT, in important phases of the rehabilitation process, such as the commencement of the reorganization plan, and all phases, in fact.
The government, primarily MLIT, decided that JAL's turnaround was vital in order for Japanese carriers to maintain and promote competition, and avoid monopolization. Having said this, we cannot understand why various limitations are to be imposed on corporate activities.
Having had received government support, we are ready to accept criticism. However, we have two reasons for objecting to this allocation.
Firstly, we feel that the equal allocation of flight slots is exactly what can maximize the consumers' convenience through fair global competition.
The two Japanese carriers involved each belong to different alliance, do business with various partners, and thus support the customers' economic activities. An unfair allocation will evidently distort competition not only between each carrier, but also between global alliances, narrow the options of consumers around the world, and produce negative results.
Eventually, one gigantic alliance will increase its competitiveness in the medium to long-term, expel all other airlines, and dispel competition from markets. We feel this inequitable allocation will trigger this situation.
The other reason for our objection is that the governmental policy and process leading to its decision is obscure and lacks rationality.
The principle behind the allocation is explained this way as below. "We will restrain the establishment of new routes excluding those clearly positioned in the JAL Group Mid-Term Management Plan, from the perspective of ensuring an appropriate competitive environment. The recent allocation is based on this principle."
This principle is a quote from a document released by MLIT last August 10 titled "Responses to the Corporate Reorganization of Japan Airlines." However, the document only states, (quote) We request JAL to submit a report on its investment and route plan regularly, or as necessary, and monitor the situation. (unquote). It does not state "We will restrain the establishment of new routes", in other words, "impose limitations on corporate activities."
This inequitable allocation is theoretically explained as such; "The establishment of new routes is not permitted, therefore, routes which are not currently operated from Haneda cannot be operated. Consequently, the allocation is inequitable." Allocating flight slots by adding a new limitation which is not mentioned anywhere at all is an extremely opaque situation, and lacks rationality.
We feel that the allocation which turned out to be inequitable is because the MLIT determined that it was necessary "from the perspective of ensuring an appropriate competitive environment." It is as if it were saying that it recognizes a distortion in the competitive environment, which it initially did not recognize.
Therefore, JAL today submitted proposal for rectification etc., and request for disclosure of administrative documents in order to seek a clear and rational reason for the allocation, and demand a change in the allocation, which will lead to unfair consequences.
For our queries, please refer to the Press Release.
We will proceed to seek a clear reply, including these matters, from the MLIT.
This ends my explanation.
Thank you.
The reason we asked you to come here today is to explain JAL's views and response regarding the allocation of additional international flight slots at Haneda airport, announced on October 2 by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT).
As stated in our Press Release of October 2, JAL will proceed to formally seek from MLIT a rational explanation of the reason behind this allocation and a correction in the allocation. As part of this procedure, we submitted the proposal for rectification etc., and request for disclosure of Administrative Documents to the Minister of MLIT and the Director-General, Japan Civil Aviation Bureau (JCAB). We requested a prompt reply.
Now, I would like to receive an explanation in tangible form.
As mentioned in the Press Release, our letter requests an explanation for the reason for this allocation, as well as a rectification, and disclosure of relevant administrative documents.
JAL received a capital injection from the Enterprise Turnaround Initiative Corporation of Japan (ETIC) in its corporate reorganization proceedings, and through our relisting, we were able to repay the full amount without any loss, and took the path as a genuine private company.
We have never forgotten the support from the customers and many other parties. It is their support which underpins our business, and I would like to express my deepest appreciation again to everyone.
Ever since our bankruptcy to this very day, we have continuously put in efforts to rebuild the company, upon receiving approval from the competent authorities, that is, MLIT, in important phases of the rehabilitation process, such as the commencement of the reorganization plan, and all phases, in fact.
The government, primarily MLIT, decided that JAL's turnaround was vital in order for Japanese carriers to maintain and promote competition, and avoid monopolization. Having said this, we cannot understand why various limitations are to be imposed on corporate activities.
Having had received government support, we are ready to accept criticism. However, we have two reasons for objecting to this allocation.
Firstly, we feel that the equal allocation of flight slots is exactly what can maximize the consumers' convenience through fair global competition.
The two Japanese carriers involved each belong to different alliance, do business with various partners, and thus support the customers' economic activities. An unfair allocation will evidently distort competition not only between each carrier, but also between global alliances, narrow the options of consumers around the world, and produce negative results.
Eventually, one gigantic alliance will increase its competitiveness in the medium to long-term, expel all other airlines, and dispel competition from markets. We feel this inequitable allocation will trigger this situation.
The other reason for our objection is that the governmental policy and process leading to its decision is obscure and lacks rationality.
The principle behind the allocation is explained this way as below. "We will restrain the establishment of new routes excluding those clearly positioned in the JAL Group Mid-Term Management Plan, from the perspective of ensuring an appropriate competitive environment. The recent allocation is based on this principle."
This principle is a quote from a document released by MLIT last August 10 titled "Responses to the Corporate Reorganization of Japan Airlines." However, the document only states, (quote) We request JAL to submit a report on its investment and route plan regularly, or as necessary, and monitor the situation. (unquote). It does not state "We will restrain the establishment of new routes", in other words, "impose limitations on corporate activities."
This inequitable allocation is theoretically explained as such; "The establishment of new routes is not permitted, therefore, routes which are not currently operated from Haneda cannot be operated. Consequently, the allocation is inequitable." Allocating flight slots by adding a new limitation which is not mentioned anywhere at all is an extremely opaque situation, and lacks rationality.
We feel that the allocation which turned out to be inequitable is because the MLIT determined that it was necessary "from the perspective of ensuring an appropriate competitive environment." It is as if it were saying that it recognizes a distortion in the competitive environment, which it initially did not recognize.
Therefore, JAL today submitted proposal for rectification etc., and request for disclosure of administrative documents in order to seek a clear and rational reason for the allocation, and demand a change in the allocation, which will lead to unfair consequences.
For our queries, please refer to the Press Release.
We will proceed to seek a clear reply, including these matters, from the MLIT.
This ends my explanation.
Thank you.
