ANA Aims for Its Growth Focusing Specifically on International Route Network – New Corporate Strategy Includes Launch of B787 into Long-haul International Operations out of Haneda
All Nippon Airways (NH) on February 24 announced its â€œFY2011-12 ANA Group Corporate Strategy,â€ centering once again its efforts on the international passenger business segment to keep growing as a global airline. The airline is targeting its consolidated operating revenues for fiscal year 2012 by 14 percent, compared to FY2010, to 1,570 billion yen. In terms of international passenger operating revenues, ANA aims to achieve 387 billion yen, up by 36.3 percent. When the target is met, the ratio of its international passenger operating revenues in the airlineâ€™s total operating revenues from air transportation business, including both domestic passenger business and freight business, is expected to increase to 27.1 percent from 23.0 percent estimated for FY2010.
In efforts to achieve the company objective, ANA will aim to enhance its competitiveness, taking advantage of the increased number of departure and arrival slots at Haneda Airport, along with reduction of the flight operations by Japan Airlines (JL). ANA will concentrate its efforts particularly on the Asian region where robust growth is expected. Taking delivery of the Boeing B787 during FY2011-12, the airline plans to introduce the new aircraft on its long-haul international routes out of Haneda Airport. Also, ANA will build up a new route network which is expected to boost its passenger convenience and lead to a profit increase by joint venture with the Star Alliance, and besides, it aims to maximize its profitability by implementing the joint global marketing, joint fares and joint sales.
Furthermore, capitalizing on the website-based sales, ANA anticipates attracting more non-Japanese markets and new customer segments as well. In terms of in-flight services, ANA plans to introduce, during fiscal year 2011, the aircraft installed with â€œANA BUSINESS STAGGEREDâ€ seats on the airlineâ€™s six routes from Japan to Europe and to the United States and the aircraft with â€œANA BUSINESS CRADLEâ€ seats on its six to seven routes from Japan to Asian routes.
Aims to Acquire Five-Star Airline Rating from Skytrax to Become â€œAsiaâ€™s No. 1 Carrierâ€
ANAâ€™s company strategy positions its FY2011-12 period as â€œthe two years whereby the airline will re-engineer its business structure to adapt to the ever-changing business environment.â€ And then, ANA will strive to grow in order to keep its commitment to becoming Asiaâ€™s No.1 airline, which is the airlineâ€™s corporate vision, based on the pillars of â€œenhanced business efficiency by maximizing management resourcesâ€ and â€œimproved basic quality and customer satisfaction.â€
Under these pillars, ANA will concentrate on maintaining and enhancing the airlineâ€™s four â€œbasic qualitiesâ€, namely, â€œsafety,â€ â€œon-time performance,â€ â€œquality and customer satisfactionâ€ and â€œCSR (corporate social responsibility).â€ In terms of the quality and customer satisfaction, for example, ANA endeavors to acquire the five-star airline rating from Skytrax. Besides, the airline will carry out a review of the productivity improvement program and the existing group management system as well.
|ANA Corporate Objective|
|FY2010 Forecast||FY2011 Target||FY2012 Target|
|Operaqting Profit Margin||5.10%||7.30%||8.30%|
|Interest Bearing Debt||922.0||908.0||910.0|
|Free Cash Flow||22.0||30.0||31.0|
* All monetary fugures in yen billions. All pencentages in comparision with previous year.
Source: Travel Vision
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