JAL: a streamlined and efficient strategy
Posted Date: 15/05/2009
Issue: Airline Ground Services June 2009
Publication: Airline Ground Services
Japan Airlines (JAL) has undertaken a programme of aircraft downsizing, route restructuring and fresh strategies to reduce costs, increase product competitiveness and improve profitability. The aim is that corporate restructuring and reform, as well as the harnessing of new technologies, will put the airline in good stead to weather the down cycle. Several departments at JAL ensure that ground handling meets the new streamlined and efficient strategy. Jo Murray reports
Typical of the Asian flag carrier model, JAL Group subsidiaries undertake the airline’s own passenger check-in, baggage handling and cargo handling at all the main airports in Japan. At smaller airports, the airline contracts third parties to undertake the work. Check-in at JAL pursues two different strategies: one for domestic traffic and the other for international traffic.
On the domestic front, JAL has pioneered a system it calls “Touch & Go”. The system was introduced in February 2005 at four major domestic airports in Japan: Haneda, Itami (Osaka), Shin Chitose (Sapporo) and Fukuoka. By April 26, 2005, JAL Touch and Go was available at 44 domestic airports. The airline has installed about 500 Integrated Circuit (IC) readers at security check areas and boarding gates at these airports.
The boarding system allows IC cardholders to board domestic flights without a ticket or a boarding pass. Passengers can board their flight quickly and smoothly, with no need to queue at an airport check-in counter or to use a self-service check-in machine. Touch & Go passengers holding an IC credit card, IC mobile phone or IC JAL Mileage Bank (JMB – JAL's frequent flyer programme) card can purchase their ticket either via the internet or telephone.
Cards, mobile phones and JMB cards with IC chips have a radio frequency unit and do not need to be inserted into a reader but can just be touched or swiped over a contact. This kind of technology is also used at Japanese rail stations where travellers can pass through the ticket barrier by swiping an IC card. When passengers complete their rail journey, they swipe the card on leaving the station and the ticket cost is automatically deducted. This is the JR SUICA system – JAL has also linked up with this system.
Touch & Go was developed in house for use on Japanese domestic routes. At present the airline does not plan to introduce this system internationally as there are so many technology related issues to overcome given that this system is not often seen overseas.
But for the domestic market, Touch & Go has fitted in nicely with JAL’s cost reduction strategy. The airline has saved on the cost of terminals and tickets as the number of users has increased. The number of Touch & Go users has steadily increased since its introduction in February 2005 and has already run into the millions. Users tend largely to be individual business travellers.
For international check-in, on December 18, 2007, JAL opened up new passenger check-in counters at Narita Airport Terminal 2 – the airline’s main international hub – as part of its overall aim of reducing average passenger waiting times by approximately 50% during peak hours.
The airline completely renovated both existing first class and executive class counters. JAL’s new first class counters are conveniently located in the centre of the terminal’s 3rd floor, just a short distance from the airline’s fast security lane. In addition to the complete renovation of JAL’s executive class check-in counters, 12 additional self check-in machines have also been installed. New counters were established exclusively for the use of the airline’s frequent flyers who are either JAL Global Club (JGC) or JMB Sapphire members. The new area is fitted with eight self check-in machines to help speed up the check-in process.
Established in June 2006, JAL fast security lane is a security check fast track lane for only first class passengers and frequent flyers. This is the first ever such facility at any of Japan's airports handling international flights. The JAL fast security lane is also within easy reach of the JGC counters.
JAL also unveiled brand new support counters dedicated to servicing the needs of priority guests, such as passengers with disabilities, passengers travelling with babies or expectant mothers. The improvements enable JAL to provide its passengers with a more convenient, user-friendly, stress free check-in experience at the airport.
Support counters have been designed on the basis of “universal design” so that counters are lower, low chairs have been provided, and handrails and walking stick holders have been incorporated to make the new check-in area as user-friendly as possible. Universal design is an approach to the design of products, services and environments to be usable by as many people as possible regardless of age, ability or situation. Furthermore, at the counters, passengers are tended to by specially trained staff, and are also able to rent baby cars and wheelchairs for use inside the airport.
On April 2, 2008, JAL unveiled a new economy class check-in area at Narita Airport Terminal 2. Furthermore, with the introduction of an inline luggage screening system by the airport authority at Narita Terminal 2 on April 22, passengers in all classes of travel no longer have to present their luggage for x-ray machine security checks prior to checking in. Passengers are able to go straight to one of the self check-in machines or check-in counters.
Economy class, passengers are now able to check themselves in using one of 36 of the latest easy-to-use self check-in machines installed in the area to speed up the whole departure process. After doing this, if they have luggage to check in they must then proceed to a nearby luggage check-in counter, otherwise they can head directly to immigration.
Passenger and baggage handling aside, aircraft handling itself for the domestic market is very much an airline group affair. JAL Group airlines serve some 61 airports in Japan. The majority of the group’s ground handling needs in Japan, such as aircraft ramp servicing, cargo and baggage handling and aircraft cabin cleaning, are looked after by the group itself.
In the main airports of Narita, Haneda, Kansai, Itami, Sapporo and Fukuoka ground handling is tended to by JAL Ground Services and its affiliates. This organisation has secured a dominant market share of ground handling in Japan, and currently have contracts with some 55 international airlines.
Ground handling at other airports such as Naha, Okinawa and other regional airports is provided by other subsidiaries of the JAL Group and by local companies not affiliated to the group. In many cases, contracted local agencies rent ground handling equipment from JAL, but use their own staff.
Overseas, JAL either looks after ground handling itself or entrusts it to the airport authority, other carriers or the major ground handling companies, depending on the situation in each country, and the quality of service provided.
The airline comments that a common challenge facing ground handling companies worldwide is the improvement of efficiency and enhancement of quality, whilst reducing costs. Therefore JAL chooses third party handling agents which use labour effectively and are able to reduce cost through greater efficiency, while at the same time maintaining service quality and safety.
Always, when purchasing ground handling contracts, JAL seeks lower pricing without any compromise of service levels. For stability, the airline prefers long term contracts of three to four years but, on occasion, the contract can run to up to five years.
When asked about the extent to which JAL teams supervise ground services or whether the airline expects agents to be self sufficient, a spokesperson responds: “We set service standard levels in the contract with a third party handler. JAL airport station supervisors will monitor the quality of service actually provided and liaise with the ground services handler particularly if our standards are not being met.”
Always, JAL insists standards are kept intact, and if the quality of handling services provided at an airport is not of the necessary standard, JAL will simply use its own teams of staff to provide the level of service required.
