ABSTRACT
Many full-service air careers (FSCs) face tough issues: a tight race among internal and foreign competitors, the rise of low-cost carriers (LCCs), and many event risks such as terrorism and pandemics. In Japan, Japan Airlines (JAL) went bankrupt in 2010. It started as a parastatal company and was operated as a national flag carrier for almost 50 years. However, surprisingly JAL was relisted in 2012, only 32 months after its bankruptcy. The management condition of JAL in the 1980s was generally good with the so-called bubble economy. By repeal of the circular notice shown previously, JAL entered into profitable local lines. JAL requested debt write-offs, downsized its airline routes, allocated new shares to a third party, and dismissed many employees. Inamori embarked upon the reconstruction of JAL and introduced two categories of initiatives: "education for leadership" and "the introduction of a self-supporting system".
