The US airlines are saying that they need to raise fees to make a profit. In the meantime, the employees on the front lines have to do with less benefits and pay cuts while their CEOs make millions.
Maybe it’s time they took a cue from Japan Airlines’ President and CEO Haruka Nishimatsu.
In a recent interview by CNN Reporter Kyung Lah, we find that Nishimatsu is unlike other CEOs. He commutes using the city bus, goes to work at his desk with other coworkers, and eats lunch at the company cafeteria, hoping his food doesn’t get cold as he waits in line to pay.
When JAL slashed jobs and asked older employees to retire, Nishimatsu cut his perks and slashed his own pay for three years running. In 2007, he makes $90,000, less than what his pilots earn. He says that he needs to share the pain and that “it’s not a big deal.” When asked whether he could imagine making $200,000 a year like some of the US Airlines’ CEOs, he said no.
In Japan, says Nishimatsu, there’s less of a pay gap between the top and the bottom. “We in Japan learned during the bubble economy that businesses who pursue money first fail. The business world has lost sight of this basic tenet of business ethics.” Nishimatsu says his airline has a long, difficult recovery ahead.
By relating to his passengers and employees in this time of the economic downturn, it may help his airline survive.
