" More than 70 percent of domestic routes operated by Japan Airlines Corp. and All Nippon Airways Co. are losing money, according to transportation statistics.
The figure is based on whether the routes have a seat occupancy rate of 60 percent, which is regarded as the minimum level for profitability in the airline industry.
The airlines' statistics showed that 193, or 70.43 percent, of their 274 routes had occupancy rates below 60 percent from April to August this year.
Even among the 70 normally highly profitable routes to and from Haneda Airport in Tokyo, 50 had occupancy rates under 60 percent during the five-month period.
In the same period last year, 47.85 percent of the airlines' 274 routes were operating in the red.
The two airlines currently plan to scrap 34 money-losing routes. But since passenger numbers have plunged by about 4.3 million from the same period last year due to the recession and other reasons, more routes could be abolished.
The airlines cannot blame low seat occupancy rates for all of their woes. Some routes with high occupancy rates still struggled due to high operating costs, while other routes were in the black despite low occupancy rates.
Of the 151 routes operated by JAL's seven group airlines, including JAL Express Co., only 42 had occupancy rates exceeding 60 percent.
The JAL route between Haneda and Ishigaki Airport in Okinawa Prefecture had the highest occupancy rate, at 91.6 percent.
Of the 109 JAL routes below the break-even point, 31 were in the range between 40 percent and 50 percent, while five were less than 40 percent.
According to officials of the Ministry of Land, Infrastructure, Transport and Tourism, the two airlines have been using profits from Haneda Airport routes to offset deficits from routes to remote islands and those linking smaller airports.
But in the latest period, only 10 of JAL's 35 Haneda routes had occupancy rates above 60 percent.
JAL plans to scrap 29 routes by the end of fiscal 2011. Of them, 10 fill up less than half of the seats on average, including the Chubu-Hanamaki route, at 43.1 percent, and the Osaka-Matsumoto route, at 38.3 percent.
Of the remaining 19 routes, 10 have rates higher than 60 percent, but their operating costs are high.A task force of experts appointed by transport minister Seiji Maehara is working out a rehabilitation plan for the struggling airline. The panel could recommend that JAL scrap more routes.
ANA plans to end five routes, but could eliminate more. The airline is expected to post an operating loss in its midterm report.
Of the 123 routes operated by ANA's five group airlines, including Air Nippon Co., only 39 had occupancy rates above 60 percent in the April to August period.
They included the one between Kansai International and Hakodate, at 87 percent.
Of ANA's 84 unprofitable routes, 52 fell in the range between 50 and 60 percent; 20 were between 40 and 50 percent; and 12 did not reach 40 percent.(IHT/Asahi: October 24,2009)"
The figure is based on whether the routes have a seat occupancy rate of 60 percent, which is regarded as the minimum level for profitability in the airline industry.
The airlines' statistics showed that 193, or 70.43 percent, of their 274 routes had occupancy rates below 60 percent from April to August this year.
Even among the 70 normally highly profitable routes to and from Haneda Airport in Tokyo, 50 had occupancy rates under 60 percent during the five-month period.
In the same period last year, 47.85 percent of the airlines' 274 routes were operating in the red.
The two airlines currently plan to scrap 34 money-losing routes. But since passenger numbers have plunged by about 4.3 million from the same period last year due to the recession and other reasons, more routes could be abolished.
The airlines cannot blame low seat occupancy rates for all of their woes. Some routes with high occupancy rates still struggled due to high operating costs, while other routes were in the black despite low occupancy rates.
Of the 151 routes operated by JAL's seven group airlines, including JAL Express Co., only 42 had occupancy rates exceeding 60 percent.
The JAL route between Haneda and Ishigaki Airport in Okinawa Prefecture had the highest occupancy rate, at 91.6 percent.
Of the 109 JAL routes below the break-even point, 31 were in the range between 40 percent and 50 percent, while five were less than 40 percent.
According to officials of the Ministry of Land, Infrastructure, Transport and Tourism, the two airlines have been using profits from Haneda Airport routes to offset deficits from routes to remote islands and those linking smaller airports.
But in the latest period, only 10 of JAL's 35 Haneda routes had occupancy rates above 60 percent.
JAL plans to scrap 29 routes by the end of fiscal 2011. Of them, 10 fill up less than half of the seats on average, including the Chubu-Hanamaki route, at 43.1 percent, and the Osaka-Matsumoto route, at 38.3 percent.
Of the remaining 19 routes, 10 have rates higher than 60 percent, but their operating costs are high.A task force of experts appointed by transport minister Seiji Maehara is working out a rehabilitation plan for the struggling airline. The panel could recommend that JAL scrap more routes.
ANA plans to end five routes, but could eliminate more. The airline is expected to post an operating loss in its midterm report.
Of the 123 routes operated by ANA's five group airlines, including Air Nippon Co., only 39 had occupancy rates above 60 percent in the April to August period.
They included the one between Kansai International and Hakodate, at 87 percent.
Of ANA's 84 unprofitable routes, 52 fell in the range between 50 and 60 percent; 20 were between 40 and 50 percent; and 12 did not reach 40 percent.(IHT/Asahi: October 24,2009)"
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