All Nippon Airways to have more international than domestic capacity - but revenue still in Japan

All Nippon Airways is planning an historical shift in its business as it prepares for its international network to surpass the size of its domestic network for the first time in its history. This is a remarkable event for an airline that just over 25 years ago was and exclusively domestic operator - while still being the world's largest airline by seat numbers.

Decreases in domestic flights coupled with growth in international, and especially long haul, services from Tokyo Haneda and later Narita airports, will help ANA in 2015 have more international than domestic ASKs, one part of its business plan through 2016 that also includes plans to respond to high-speed rail and LCC competition.

However, the domestic market will still be ANA's heartland, with the world's third-largest domestic market producing a higher proportion of revenue (but also costs) than international. ANA does enter territory familiar to Japan Airlines, which has had a larger international than domestic focus. But now JAL is decreasing its international exposure, which will allow ANA and JAL start to converge in balancing international and domestic networks. They will also approach Air China's international-domestic balance. With ANA having an overall larger position than JAL, it brings more risk to Japan's declining domestic performance and increased competition on long-haul, and specifically North American, services.