StarFlyer outlines network plans, targets USD41m operating profit by FY2014

StarFlyer released (11-May-2012) its 2012-2014 Medium-Term Management Strategy with the following highlights:

• Expansion of domestic and international route network:
  • Domestic: Plans to increase frequencies and launch new routes from Tokyo Haneda Airport when the number of slots at the airport increases in spring 2013;
    • The carrier plans to add an additional 27 to 31 domestic flights between 2013 and 2014;
  • International: The carrier is scheduled to launch its first international service, twice daily frequency between Kitakyushu and Busan from 12-Jul-2012 with plans to launch new international routes from Tokyo Haneda to Southeast Asia from FY2014;
    • The carrier plans to add three new international flights in 2013 and between two to four additional international flights in 2014;
• Fleet: StarFlyer plans to increase its fleet size from nine aircraft this year to 10 in 2013 and 11 in 2014;
• Cargo operations: Plans to increase domestic cargo operations and expand its partnership with Fukuyama Transporting Co;
• Cost reduction: Cost reduction of JPY5000 million (USD64 million) between 2011 and 2014 including JPY2600 million (USD33 million) from new route costs, JPY200 million (USD2.6 million) saving from training costs and JPY800 million (USD10.3 million) in equipment-related costs;
• FY2014 forecast:
  • Capacity (seats kilometre): +106% from 2011 to 2014;
  • Operating revenue: JPY42,300 million (USD542.3 million), +87.3% when compared to FY2011;
  • Operating profit: JPY3200 million (USD41.0 million), +172.1%;
  • Net profit: JPY2000 million (USD25.6 million), +107.0%;
  • Operating margin: 7.7%, +2.5 ppts;
  • Debt to equity ratio: 1.3, compared to 0.9 in FY2011;
  • Revenue per ASK: JPY11.4 (USD 14.62 cents), -8.8%;
  • Cost per ASK: JPY10.5 (USD 13.46 cents), -11.0%.