JAL Blog Post (via Kanako’s Blog)

Kanako, this is a really great post! You organized you paragraphs so that it was easy and clear to follow and understand the topic you were discussing. A point to realize, however, is that JAL actually became bankrupt last year, so remember to look at the date of the article you are given! Also, since you are learning about elasticity, how do you think the different types of elasticity played a role in what happened to JAL? For example, regarding income elasticity of demand, JAL thought that even though peoples’ incomes were going down, demand would be inelastic so they didnt lower the price of tickets, but they were wrong. The fall in income led to the fall in demand, and fewer people were flying with JAL.

The famous Japan Airlines, JAL, has recently been reported to be heading towards bankruptcy, and many customers who have been a frequent user of JAL are starting to use other airlines that are cheaper. After facing this trouble, JAL has set a number of considerations to save themselves. One thing JAL plans to do is to operate more regional jets on domestic routes with higher profitability. For International passengers, JAL plans to replace the ol … Read More

via Kanako’s Blog

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