The international and domestic operations units of Japan Airlines Corp., the nation's flag carrier, merged Oct. 1. The merger means the complete reorganization of JAL and a new start for the airline. But the new JAL faces rough times ahead.
The former Japan Airlines Co. and Japan Air System Co. were integrated under a single holding company in 2002 to improve their competitive edge. Then, in April 2004, Japan Airlines International Co. and Japan Airlines Domestic Co. came under the wings of the holding company, Japan Airlines Corp.
But the integration did not lead to the expected benefits. Restructuring efforts have been slow. A spate of safety problems has caused many customers to switch to rival airlines. Soaring fuel prices have also hit the company.