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Japan Airlines $($JAL$)$ is the largest airine operator in Japan lying to $221$ destinations

in $40$ countries worldwide. However, it must be considered that over $60\%$ of airports,

JAL operates on$,$ are situated in weak markets $($USA&EU$)$ and only $18$ airports in

important emerging markets $($Asia$,$ India & UAE$),$ which brings up concerns on the

future success. The main competitor is ANA that offers $34$ international routes and

$89$ flights$/$day in important markets, and other competitors are SIA, Thai Airways and

Kathay. Key international competitors are United, KLM$,$ and British Airways.

After the global crisis, Japan's economy, recovers only slowly, persisting job$-$cuts,

high pubilic debt and delation. Japanese customers became increasingly price

sensitive$,$ except prime customers who were loyal. However, the company has built

a strong brand image.

A major uncertainty for JAL is rising fuel costs and market liberalization, which put

a major pressure on regional airines. In the international market's alliances had

become an important strategy to live. JAL joined "The One World" Alliance. Aliances

are supposed to help redirecting the traffic,increase profits, improve customers

attilude as well to leverage scale economies in operations. However, the key issue

is developing a consensus on how partners could establish common safety,

performance standards and safety.

JAL invested on HR$,$ by executing the training strategy, which over time built a strong

sense of identity. It has also the best cost and report structure for premium level

service.

JAL leaders are considering some options regarding their future position in the

market, such as staying on the Alliance, merging with Anna, or any other cost$-$

opportunity option, even though it has limited financial resources.