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COVID forces Japan Airlines onto new flight path, president says

Japan Airlines is to reduce its focus on international business travel to strengthen its low-cost network, its president said, in a sign of how the coronavirus pandemic has shaken up one of the country's two main carriers. JAL might also need further state support if its finances continue to deteriorate as a result of the massive downturn in demand for flights during the pandemic, Yuji Akasaka said. His comments show that many airlines think travel patterns will undergo a permanent shift following the coronavirus pandemic, with far less of the sort of business travel that has underpinned profits at "full service" carriers such as JAL. The airline is to unveil a new midterm plan by March reflecting drastic changes in the business environment. "We have focused on business travelers taking mainly our international flights, but that demand will not come back to where it used to be," said Akasaka. "We need to leverage on low-cost models which suit holiday use so that it can complement reduced business demand," he added. Demand for business flights is likely to shrink by 20-30%, he said. His comments set the stage for a period of further restructuring at JAL, which got government help after it filed for bankruptcy protection a decade ago. The change of focus could mean a more prominent role for JAL-related companies that have leaner "low cost carrier" structures. They include Zipair Tokyo, a wholly owned subsidiary that started in June but has so far had to run its flights between Tokyo's Narita Airport and Bangkok as well as Seoul on a cargo-only basis because of travel restrictions during the coronavirus pandemic. JAL will "thoroughly build low-cost carrier networks" around Narita, one of its main hubs, Akasaka said. "We will support each other. ... JAL will help Jetstar Japan and Spring Airlines Japan for their survival."<br/>