The CEO of Japan Airlines, Toshiyuki Shinmachi, and two of his top executives have been asked by 4 of the companies directors to resign due to “Poor Performance”. The shakeup was unexpected because he had been hired within the past year. However, the airline continued to have safety and revenue issues that Shinmachi was brought in to rectify, and this led to his dismissal.
“This means the current management is not functioning at all, and the airline’s situation is worse than I expected,” said Yoku Ihara, research head at Retela Crea Securities in Tokyo.
Shinmachi, promoted to the top job at Japan’s largest carrier less than a year ago, has been under pressure to improve the airline’s safety record, cut costs and raise earnings. Fuel prices have surged and passengers have switched to All Nippon Airways after reports of at least 18 safety lapses last year, helping to triple Japan Airlines’ third-quarter loss to ¥11.1 billion, or $93.6 million.