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ANA outlines focus on international expansion, driven by 787s

20-Feb-2012 12:49 PM

All Nippon Airways (ANA) released (17-Feb-2012) details of its Corporate Strategy for FY2012/13, key to which is the "expansion of international network to become Number One in Asia". The highlights of the plan are:

  • A 22% increase in ANA’s international operations in two years;
  • Increase in operating income to JPY110 billion (USD1.4 billion) in FY2012 and JPYP130 billion (USD1.6 billion) in FY2013;
  • Adoption of multi-brand strategy and a switch to holding company structure;
  • Further efficiency measures to reduce Group costs by JPY100 billion (USD1.3 billion).

Further details include:

  • Aim of plan: The plan is "designed to strengthen ANA against a backdrop of global economic uncertainty, the ongoing sovereign debt crisis in the Eurozone, high oil prices and fluctuating foreign exchange rates and position it to become Asia’s Number One airline in the face of increased competition from a new wave of Low Cost Carriers, other carriers in the region and other modes of transport". The carrier continued, "At the same time, the management plan will enable ANA to take advantage of the expansion of airport capacity in Metropolitan Tokyo, its role as launch customer for the Boeing 787 Dreamliner and the joint ventures with partner airlines";
  • Network expansion: Growth will be focus internationally. ANA Group will increase international ASKs by 22% over FY2011 by FY2013, with growth of 9% year-on-year in FY2013, preceded by year-on-year growth of 11% in FY2012 and 15% in FY2011. 787 equipment will help in the expansion and strengthening of the international route network, beginning with Tokyo Narita-Seattle and Narita-San Jose routes, with the carrier to also focus on 'connection demand'. Domestically, the carrier will focus on better matching supply with demand with a focus on efficiency using 787 equipment;  
  • 787 Fleet: ANA said half of its 787 fleet (27 aircraft) are due to be in service by end of FY2013, up from 20 at the end of FY2012 and six at the end of FY2011;
  • Cargo business: The Group will expand business by using aircraft efficiently and by developing the Okinawa Cargo Hub;
  • Alliances: The carrier will strengthen global network through collaborative strategies in joint venture operations on routes
    between Asia and US/Europe;
  • AirAsia Japan: Plan for inauguration of service in Aug-2012, followed by successive expansion of routes serviced and number of flights;
  • Corporate plan: Following its entry into LCC business, ANA will adopt a new corporate structure to reflect its position
    as both a full service airline and a LCC;
  • Cost reduction: In addition to the structural reforms enacted in FY2011, the Group will introduce further measures
    to reduce costs by JPY100 billion (USD1.3 billion) (equivalent to an approximate JPY1.0/USD 1.26 cent reduction in unit costs) by FY2014. It will aim to lower its total workforce by around 1000 through attrition, while taking other measures such as reducing aircraft and facility expenses;
  • Financials: The carrier is targeting medium-term consolidated operating income of greater than JPY150 billion (USD1.9 billion), with a consolidated operating income margin of greater than 10%. [more - original PR]