Get The Free Sample Complete
SWOT & PESTLE Analysis Report
This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals. We also guarantee that you cannot find matched quality at such competitive and economic pricing.
Get Your Free Summary Copy of the
SWOT & PESTLE Analysis Report
Get the summary SWOT & report delivered straight to your email inbox for free.
Our insightful and holistic reports have helped corporate,academia and researchers to take their research forward. Like us on Facebook to stay updated with the latest published SWOT & PESTLE Report.

Japan Airlines SWOT & PESTLE Analysis

ID : 52347553| Jul 2018


Business Sector :Airlines

Operating Geography :Japan, Asia

About Japan Airlines :

Japan Airlines Co., Ltd. (JAL) is one of the major flag carriers in Japan with main hubs at Tokyo’s Narita International Airport, Tokyo International Airport, Nagoya’s Chubu Centrair International Airport and Osaka’s Kansai International Airport. Operating with a large fleet of narrow and broad aircraft, JAL has a large domestic network with regional and international routes to Europe, Canada, the United States, South America and Australia. It is the flag carrier airline of Japan and the second largest in Japan after formidable All Nippon Airways. It is headquartered in Tokyo, Japan. JAL group companies include Japan Airlines, J-Air, JAL Express, Japan Air Commuter, Japan Transocean Air and Ryukyu Air Commuter for domestic feeder services; and JAL Cargo for cargo and mail services. Its plans to partner with AeroMexico will increase the airline reach to Mexico in 2018.

Japan Airlines Revenue :

1.288 trillion JPY Mar 2017

Competitive Analysis of Japan Airlines


The SWOT analysis of Japan airlines explores the strengths, weaknesses, opportunities and threats of Japan Airlines, one of the flag carrier airlines of Japan. These encompass both the internal as well as external factors which affect the company. The airlines biggest strength is its vast reach across a number of Asian, European as well as American countries which grants it significant competitive advantage over the other airlines operating in the global arena. However, Nippon Airlines, its biggest competitor with a 26.2% market share continues to be a threat:

1. Strong presence in domestic and international market
2. Home market has high affinity for Japanese carriers.
3. JAL is member of Oneworld alliance.
4. Domestic Japan is a high yielding market
5. Large fleet portfolio.
1. Operating costs is increasing y-o-y.
2. JAL's cost base is the one of the highest in Asia.
3. Out-dated IT platform
4. Some of the routes are unprofitable for JAL.
1. Increase in Inbound tourists to Japan and regional tourism promotion
2. Increase presence in overseas market.
3. Generation of revenue can be done from ancillary businesses.
4. Collaboration with Vistara, Aeroflot
5. Hosting of 2020 summer Olympic games in Tokyo
1. Fuel price is highly volatile which is a major concern
2. Increasing competition from Competitors
3. Political tensions between Japan and China.
SWOT & PESTLE (combined)
Complete Report
USD 15.53
Great quality, Affordable pricing.
Safe and secure payments

Detailed SWOT Analysis of Japan Airlines



1. Strong presence in domestic and international market: JAL operates in around 682 routes including the code- sharing of which 143 routes are domestic and 571 routes are International. JAL has a presence in around 56 countries majorly in Japan, USA, China, Australia, Russia etc. It serves around 344 airports in these 56 countries of which 59 airports in Japan and 99 in USA contribute the most.

2. Home market has high affinity for Japanese carriers: In most markets, the domestic population tends to favour domestic airlines. In Japan, this is true in the extreme. The local market has a very high affinity for Japanese carriers that translates to a strong yield premium over foreign airlines. Even if the market receives cost-effective transport options and Japan continues to examine its financial state, this advantage will not diminish, and continues to persist at strong levels.

3. JAL is a member of Oneworld alliance: Japan Airlines code-shares with oneworld partners American Airlines, British Airways, Cathay Pacific, Finnair, Iberia, LAN, Malaysia Airlines, Qantas (including Jetstar), Qatar Airways and S7, and has additional commercial agreements with some 15 other airlines, including Air France, Air Tahiti Nui, China Airlines, China Eastern, China Southern, Emirates, JetBlue, Jetstar, Korean Air, Thai Airways and WestJet. When flying with oneworld alliance partners, members can enjoy reciprocal benefits including use of exclusive check in counters and lounge access depending on their oneworld Tier Status. Members must show their status cards at check in. Frequent flyers can enjoy a wider service offering across all alliance partner airlines. In addition to JAL Group airlines miles, miles earned on oneworld member airlines will also be counted as FLY ON points for the FLY ON Program, giving you more opportunities to qualify for FLY ON status. When your top tier status is equivalent to oneworld Ruby, passengers are entitled to access to Business Class priority check-in, access to preferred or pre-reserved seating, priority on waitlists and when on standby. This gives JAL a greater competitive advantage over its rivals.

4. Domestic Japan is a high yielding market: Local air fares in Japan are some of the highest in the world, and All Nippon Airways derives a disproportionately large part of profit from its domestic network. This provides stability that is likely to continue as the inroads by competitors like Skymark and the more recent LCC entrants have so far been modest. ANA and JAL have flagged long-term domestic capacity decreases. Capacity discipline could address weakened demand.

5. Large fleet portfolio: It has total fleet of around 227 aircrafts of which 84 are international and 143 are domestic. They are present in different sizes i.e. 40 large sized, 70 middle sized, 64 small sized and 56 regional aircrafts. It has 171 Boeing aircrafts of which 31 are leased and 140 are owned by the Company. In addition to this, they own 19 Embraer aircrafts, 25 Bombardier aircrafts and 12 Saab aircrafts. This accounts for a strong fleet strength which Japan Airlines uses quite prudently.


This section is available only in the Complete report on purchase.


This section is available only in the Complete report on purchase.


1. Fuel price and Foreign exchange is highly volatile: A major concern is the fuel price which is highly volatile. Singapore kerosene has increased from 57.2 usd/bbl to 66.0 usd/bbl. Dubai Crude Oil has increased from 45.6 Usd/bbl to 53.0 usd/bbl. FX rate has also increased from 108.6 jpy/usd to 115.0 jpy/usd.

2. Increasing competition from Competitors: All Nippon Airways is the market leader in Japan with 26.2% market share and then comes Japan Airlines with 20.7% market share. Market share of ANA has significantly increased in the last 5 years whereas JAL’s market share is almost stagnant making this a potent area of concern. Lots of other small airlines also compete significantly by offering reduced competitive prices. Skymark Airlines, Vanilla Air, Peach Aviation etc. are some of the other competitors. Japan's ambitious inbound tourism goals are accompanied by increasingly liberal aviation policies. Several open skies agreements have been concluded with near neighbours and the US and more will be needed to encourage the sort of growth needed. Until Japan Airlines is able to improve its inbound marketing and sales capabilities these moves will work to support foreign airline entry, undermining All Nippon Airline's growth strategy. China’s airways are also coming up with significant global potential and will increasingly transfer to 6th freedom traffic flowing structure from Japan's long-haul markets as their range of foreign spots improves.

3. Political tensions between Japan and China: Relations between China and Japan, the world’s second and third largest economies, have remained sour by a long drawling dispute over a constellation of islands under Japanese control, and the surrounding waters. These islands are of special interest for abundant oil, rich natural gas resources, rich fishing grounds and significant shipping ports. The US Energy Information Administration predicts that the East China Sea has between 60 and 100 million barrels of oil, whereas Chinese investigations claim that untapped resources could run as high as 70 to 160 billion barrel. These disputes is a major threat to JAL and the airlines are facing challenges in flying over the East China sea to ferry passengers.

SWOT & PESTLE (combined)
Complete Report
USD 15.53
Great quality, Affordable pricing.
Safe and secure payments

Check out analysis of other relevant companies

Copyrights and Disclaimer

Japan Airlines SWOT and PESTLE analysis has been conducted by Anshul Nagar and reviewed by senior analysts from Barakaat Consulting - an Ezzi IT and Business Consulting venture.

Copyright of Japan Airlines SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

Japan Airlines SWOT & PESTLE Analysis
Price : USD 15.53