Case Study Japan Airlines

Japan Airlines Corporation (JAL) is the leading full-service airline in Asia operating in the domestic and international passenger air-transport industry. However, in 2009 JAL's financial situation is alarming. 2009 was completed by a ¥51bn operating loss, representing a decrease of ¥140bn from previous year. In comparison, JAL's major competitor All Nippon Airways manages to stay in the black. This means JAL's competitive position is clearly in danger. Even worse - if JAL does not find a new strategic option immediately they are in danger of going bankrupt soon.

This paper intends to find such a strategic option to guarantee future success of the airline. A thorough strategic analysis including an internal and external analysis is used to find out the key strategic issues. Afterwards three possible strategic options are discussed. The most promising option is put forward and its implementation issues are thoroughly discussed.