Oh no...looks like they are gonna take less new delivery. Hope that won't delay the 777 introduction to the LAX and ORD routes
http://www.bloomberg.com/apps/news?p...ZOQ&refer=home
Dec. 26 (Bloomberg) -- Japan Airlines Corp., Asia's biggest carrier by sales, said it may cut its capital investment plan as it takes delivery of fewer planes and travel demand slows.
The company will spend 100 billion yen ($1.1 billion) less than its original plan of 419 billion yen for the three-year period from April 1, 2008, spokesman Soichi Yatsugi said, confirming President Haruka Nishimatsu's comments published in the Yomiuri newspaper today.
Japan Air follows domestic rival All Nippon Airways Co. in cutting investment to reflect falling passenger traffic caused by the global recession. International premium air travel, carriers' most-profitable fares, fell 6.9 percent in October, the fifth straight monthly slide, Geneva-based International Air Transport Association said Dec. 19.
The carrier will introduce fewer new planes into its fleet as a result of the revised spending plan and its operating profit forecast of 96 billion yen for the three-year period remains unchanged, Yatsugi said.
Japan Air, also known as JAL, on Nov. 7 cut its full-year operating profit forecast 44 percent to 28 billion yen for the year ending in March because of declining sales and fuel costs.
All Nippon on Dec. 12 said it will reduce capital expenditure by 200 billion yen over four years.
JAL rose 1 percent to close at 211 yen at the close of trading on the Tokyo Stock Exchange. It has fallen 17 percent this year.
