Peach Aviation Update

Transcript

Takeaki Mori:The average ancillary revenue, as well as per passenger, have been increasing, and 19% of total operating revenues came from ancillary revenue in 2016. And the most common Purchases extra baggages and their seat reservation follows. But we have some more interesting items on board for their in-flight sales. For example, we are selling their Peach Ticket. Peach Ticket is like a voucher of a transportation ticket from destination airport to downtown. And the good point of Peach Ticket is no need to upload real ticket So we don't have any deadstock. And for the passengers, the benefit is the ticket they have is a special discount ticket. And all the passengers have to do after arriving at the airport is just to go to the railway stations to just exchange to the rail ticket. So no need to exchange money and no need to use unfamiliar vending machines. And we have one more interesting issue. And F&B, and the food and beverages. And we are the Kansai local airport companies. That's why we are always selling very unique Kansai dishes like okonomiyaki or the takoyaki. We are always selling the normal takoyaki, but when you open the new route, we just arrange takoyaki to fit for the new destinations. So in February this year, we just opened Bangkok Lounge and we just opened takoyaki with a flavour of tom yum goong. And tom yum goong is very special for Japanese, but most of the passengers on the route are Thai people. So the Thai people really love the normal takoyaki. So no need, don't ask me the result of the selling. Challenging is very important for this company. All airports and destinations from 4 hours range from Okinawa will be our future destinations. But we will open Sendai Airport as a new base this year, and we're going to open new Chitose base next year for our new base. So we have to keep the balance of the fleet assignment and the flights. So we have not decided yet the new destination from Okinawa. Actually, we are promoting commercially The transit travel, which enhances their connection passengers to stay 1 or 2 days in Okinawa to enjoy before going to the next destinations. So it is very difficult to get the right number of the circulation. But we just started our Bangkok route in February, so I hope the number itself is not a great one. Actually, Peach is a joint venture company with 3 shareholders. They have shareholders from Far Eastern and Hong Kong-based investment fund and the INCJ, a Japanese fund. And one another is ANA Holdings. And as you know, this April, ANA Holdings acquired 23% of shares from First Eastern and INCJ, and ANA Holdings has increased its share from 37% to 67%. But in the midterm business plan of ANA Holdings, there is a theme of their dual marketing Which they aim their synergy of full-service carriers and LCC to maximize the profit of ANA Holdings. So as you know, the Japanese LCC market will make rapid growth. So I think it's quite reasonable for the shareholders to get a Peach share, to get a profit from LCC market through Peach. But one of the strong points and the good points of Peach for success comes from their independence from the parent companies. In order to maximize the profit of Peach as well as ANA Holdings, ANA Holdings guaranteed us to continue our business in the same way even after the changing of the share ratio. So we can keep— continue our business while keeping independence and uniqueness. So actually, no additional senior members or board members have been sent from ANA Holdings, so nothing has been changed. Thank you.

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