Posts Tagged ‘All Nippon Airways’

Japanese low-cost carriers hit hard by pilot shortage

Sunday, May 25th, 2014

Onward and upward: Plane taking off from Narita airport

Onward and upward: Plane taking off from Narita International Airport

Low-cost carriers (LCC ) — airlines with cheaper fares than standard carriers — came relatively late to Japan. Peach Aviation was the first in March 2012, followed by Jetstar Japan, an affiliate of Australia’s Qantas Airlines, in July of the same year, and then Air Asia Japan, which has since changed its name to Vanilla Air, for some reason. (Skymark, which also charges less that most airlines, is technically not an LCC.)

As of March, LCCs accounted for 7.5 percent of domestic passengers, which isn’t bad, and growth seemed assured, but suddenly all three bargain airlines have hit a wall. Vanilla recently announced that it will cancel 154 flights, or 20 percent of its schedule, for June, and Peach said it would curtail its own schedule by more than 2,000 flights through October. Jetstar had planned to expand its flight coverage this year but has since postponed those plans.

The reason is a serious shortage of pilots, in particular flight captains. Vanilla says it has had personnel problems recently due to pilots quitting or taking sick leave, but its president, Tomonori Ishii, has assured the public that it will address the problem by “borrowing” personnel from its parent, ANA, but on a temporary basis. Of Peach’s 52 captains, eight were out of action due to illness or injury, but, in fact, the problem is more intractable.

CONTINUE READING about Japan's pilot shortage →

The sky becomes less of a limit for cabin attendants (unless you’re a man)

Friday, August 23rd, 2013

Screen shot of ANA's new Airline School, which opens in October

Screen shot of ANA’s new Airline School, which opens in October

All Nippon Airways just announced a new hiring policy for cabin attendants (CA). Starting next year, new CAs will be full-time regular employees of the company. Since 1995, CAs at the company were hired as contract workers who could opt to become regular employees after three years. The reason for the change is tougher competition from low-cost carriers (LCCs). ANA says in order to ensure the best service for their patrons they want to offer flight attendants better employment security. Currently, ANA employs about 6,000 CAs, 1,600 of which are contract workers. Next year, if these 1,600 want to become regular employees they can. The company plans to hire 450 new CAs in 2014.

The contract system was adopted by both ANA and Japan Airlines (JAL) in the same year, when the bubble economy had ended and Japan was entering its long period of sluggish growth. The object was to keep personnel costs in check. JAL says it has no intention of abandoning its contract work system “for the time being.” Twenty percent of its 3,800 Japanese CAs are contract workers. LCCs Peach and Jetstar only hire CAs as contract workers, while Skymark offers its contract CAs regular employment after one year. Though ANA’s policy change means its personnel costs will rise, the company thinks it can offset these expenses with reduced training costs.

Presently, when an ANA CA’s contract expires, she is offered full-time employment, but she can also opt for another 3-year contract. Over the years, 80 percent of ANA’s CAs chose regular employment. Contract workers are paid by the hour, and during the initial training period the wage is less than ¥1,000. That goes up to about ¥1,200 an hour until the end of the contract. JAL pays even less, about ¥1,100. Typically, a cabin attendant earns about ¥2 million a year while she is a contract worker, which isn’t much but CAs, even contractors, have some perks, like access to inexpensive company housing. However, the difference between contract workers and regular workers is striking. In 2001, the average yearly pay for CAs in Japan was ¥6.79 million, reflecting the fact that their ranks were still dominated by full-time regular employees. By 2011 the average salary had dropped to ¥3.85 million, reflecting the dominance of contract workers and newer regular employees rather than veterans who make more due to seniority. Last year it was about ¥4.8 million.

Another factor that influences pay is employment longevity. On average, Japanese CAs remain in the business for 7.4 years, and their average age is 31.2. In the past, it was the most coveted job for women in Japan, though not necessarily for career reasons. It was considered a glamorous occupation during a time when Japan was still isolated from the world, and thus offered women the only chance for overseas travel. (It was also the best way to put one’s English language skills to use. At one time, all English conversation schools has special classes for aspiring flight attendants.) Also, it was considered the best way to find a good husband, since sutchi (stewardesses) were also coveted as wives by eligible bachelors.

It was something of a joke in the 60s and 70s that professional baseball players and sumo wrestlers married either TV announcers or JAL cabin attendants. That may explain why the average age remains low: few CAs continued to work after they married, and if they did they usually tried to get transferred to the position of “ground hostess,” which is even more glamorous since there are so few of them. Also, while both regular employees and contract workers can take maternity leave, only regular employees can ask for shorter hours after they return to work. Tokyo Shimbun says that 10 percent of contract workers quit before their option to become regular employees comes up and one of the main reasons is that they become pregnant.

There’s little doubt that management has a certain image of what CAs should be. Only 1 percent of CAs in Japanese airlines are men. Though it’s against the law to discriminate in terms of gender, it seems obvious that airlines hire women predominately, and Japanese men who want to become CAs know this. According to an article in Newsweek, European and Middle Eastern airlines actively recruit Japanese male cabin attendants. Of the Japanese CAs who work for European and Middle Eastern airlines, 10 percent are men. In Asia, the portion is the same as it is in Japan.

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