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Divisional Profitability Management System

The divisional profitability system is based on amoeba management and has the strengths of "proactive management" and "employee participation." The JAL Philosophy, which contains shared values, is essential to the operation of this system. It helps us to not only maximize divisional profits but also pursue profits for the “best of all.”

Efforts that proved effective during the pandemic

Continued implementation of the divisional profitability management system proved to be effective during the pandemic. Utilizing the strengths of “proactive management,” we achieved flexible cost management. By analyzing earnings forecasts months ahead, we adjusted capacity in response to sudden fluctuating demand, thereby controlling variable costs such as operating expenses. Based on the forecast, all employees thought of what they could do to improve profitability and put their ideas into practice. We were able to demonstrate the strength of “employee participation” and improve the profitability of the JAL Group.

Role in realizing the medium term management plan

We will make maximum use of these two strengths, "proactive management" and "employee participation," to restructure our business. Utilizing "proactive management," we create a monthly earnings forecast in each business area to grow the business, while responding immediately to new market conditions. At the Group Business Performance Reporting Meeting attended by all Executive Officers, for example, the executives of the FSC business provide recommendations on issues and necessary actions in the Mileage and Lifestyle business. In this way, proposals and suggestions are exchanged to generate synergies across the JAL Group based on "employee participation" We seek to achieve growth in each business area from all perspectives of the JAL Group.

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