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ANA Group Announces Network Planning FY2008, Emphasizing Tokyo Metropolitan Airport Expansion and Priority on China Market
February 2008

The ANA Group released on January 23 its international operations plan for the fiscal year 2008. With an aim to become Asia's Number One Airline, as defined in its corporate objectives for the first year of the mid-term corporate strategy 2008-2011, ANA will strive not only to promote a corporate vision of "Value Creation" reflecting the customer needs, but also build on the corporate strategy to be fully ready for the capacity expansion of the Tokyo metropolitan airports in 2010.

ANA focuses its international operation noticeably on the China route. Under the Asian Gateway Initiative, the airline plans to operate daily scheduled charter flights from Tokyo Haneda to Hong Kong from April 1 and probably by July also to Beijing Nanyuan airport. Weekly frequency from Osaka Kansai to Qingdao in China will be increased by 4 flights to a daily service and to Dalian, China by 3 flights also to a daily service from March 30 and June 1 respectively.

The newest Boeing B737-700 aircraft will be introduced on the Kansai/ Hangzhou route from June 1. Commenting on the recent strategy focusing on the China market, the ANA public relations office explained, "The airline has continued to concentrate on destinations that bring robust demand and a higher unit price, considering the maximum utilization of the available take-off and landing slots."

Although the traffic demand for China declined during the second half of 2007, yet ANA indicated its expectation for vibrant demand from China as well as from Japan saying, "China has many prominent business destinations and, on top of it, Beijing's Olympic Games held this year will be attracting many people to China. The country has a big population with such a huge market potential."

In order to enhance the foreseen competitiveness following the capacity expansion of take-off and landing slots in the metropolitan area airports in 2010, ANA is ready to start to build up a ground to strengthen its "network carrier business" model. Code-sharing and revision of the schedules are considered as the main strategy. From April 1, for example, the airline will operate its Taipei route in code-sharing agreement with United Airlines under the flight number of ANA.

With an aim of revamping the organizational structure to enhance the operating efficiencies while ensuring the customer conveniences, the airline continues to pursue flight operations in code-sharing agreements with other airlines and even implies, as the case may be, to suspend some of the flights on its own.

The airline also tries to improve onward connectivity with domestic flights from the regional airports. ANA expects that these strategies will bring the airline an increase of 6.2% in terms of the number of international passenger flights or an increase of 1.4% in terms of available seat kilometers (ASK) during FY2008.






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