Dear JAL, November 4, 2009

As you are experiencing a $1bn debt, I would advise you to lower your seat prices and cut off some of your business class seats. This is because due to the global economic recession, less business men tend to be flying around the world and if your prices sustain being too high only your debt will grow. At this point, price is very elastic, and a drop in price would mean that you will gain more consumers. Also, I would recommend you cut many domestic flights because some routes are just useless. Though you are known for your sleeping seats and excellent service, you should cut back on these luxuries as at this point with the recession, not many people are willing to spend a fortune. The expensive bottles of wine should be reduced as this will cut in the factors of production. You have fired a lot of staff, which is also reducing the money consumed in factors of production. I would also recommend Ryanair’s technique: land somewhere close to a major city. The prices to land at the outskirts are drastically different than those of airports at major cities. Good luck .