Japan Travel Trade Weekly News
Keeping you abreast of what's going on in the
Japanese travel and tourism industries.
News consolidated by Travel Vision, Inc. updated every week.
ANA Hinting Establishment of LCC Within FY2008; Possible to Develop Different Brand Name Among Options
Early-April 2008
ANA indicated recently to Travel Vision that there exists a
possibility of advancing the timing of establishment of an LCC, which
it originally planned in FY2009. ANA's original plan set it to be in
time for the expansion of airports in the Tokyo metropolitan areas in
2010.
"When other companies are expected to start LCCs in time for the
2010 Big Bang, i.e., liberalization of the air transport sector in
Japan, ANA, rather than just waiting, is preparing itself to be ahead
of the competition," observed the public relations office. Although
it avoided making any definite statement as to the timing to be
within the current fiscal year, it did refer to such a possibility.
According to ANA, the LCC, which is going to serve short-haul
international routes within Asia, can take all possible form
including a joint venture with other airline, acquisition of an
existing company among others. It is geared toward being prepared for
price competitions to be brought about by new entrants into the
market rather than being after the core business goal of
profitability.
As to naming of the new company or its brand name, ANA will not
stick to ANA Group and will continue to watch developments including
a new entity independent of ANA Group.
Corporate Affairs, Asia, a newly-established office which is
positioned to explore strategies for LCC in Asia, will be based in
Hong Kong starting from April 2008.
Japan Airlines Plans 15 Charter Flights to Alaska This Summer,
Offering Air & Sea Combination Possibility
Early-April 2008
From July 20, Japan Airlines International (JL) will again
operate inclusive tour charters (ITC) to Alaska for the 6th summer
season in a row. The number of the charter flights planned during
this summer totals 15, making it the largest number with the
exception of the summer 2006 when 16 direct charter flights were
operated.
The flight route will be from Japan to Anchorage and return. Also
with a possible combination of Anchorage and Fairbanks, the flight
patterns will provide possibilities for travel agents to plan package
tours featuring the colorful autumn season and Aurora, the northern
lights, from the middle of August to the beginning of September.
A combination with an ocean cruise is newly made available for
the charter programs this summer. Accordingly, new operational flight
patterns are being planned to allow such combinations.
JAL had first started its charter flight operations to Alaska
back in 2003. Approximately 1500 passengers were carried in FY2003,
followed by 3100 in FY2004, 5300 in FY2005, 7600 in FY2006 and 8900
in FY2007, thus constantly expanding the charter market to Alaska
since 2003.
Stressing the growing convenience enhanced by the direct charter
flights to the non-scheduled destinations and also creating the new
air and sea combination, the airline aims to further boost its
charter market to Alaska.
H.I.S.'s Young Staff Being Promoted in Organizational Changeover to Implement Snap Decision and Quick Action
Early-April 2008
H.I.S. went through a structural reform as of April 1 when a
change of presidents took place. The reform is designed to hand over
power to younger staff in a bid to pick up speed in business judgment
and performance. They are being asked to have high professionalism so
that they could produce tours catering to the specific market
requirements and distribute them far and wide, which in turn will win
support from consumers and lead H.I.S. to another growth.
In this changeover, four sales divisions (Kanto, Chubu, Kansai,
and Kyushu/ Chugoku) were consolidated to two, namely, West Japan
(Chubu, Kansai, Kyushu/ Chugoku) and East Japan (Kanto/ Tohoku/
Hokkaido).
In East Japan, sales division ceases to exist. Instead, Kanto is
divided into merchandising department and sales department while
Tohoku and Hokkaido have separate regional sales teams. Leaders of
each department and regional sales team are given authority
equivalent to a general manager of a sales division. Up to now,
general managers of the sales divisions were at the age of 40 plus,
but most of these new leaders are in the mid-30's and some are in
early 30's.
A new section called Headquarters Business Strategy Office was
established which comes under direct control of the president. It
makes strategies to be executed nationwide beyond individual
discretion of each sales division, department, or team, for such
matters like an advertisement policy.
Some other new sections set up at the head office include CS-ES
Control Center, Purchase Office responsible for cross-sectional
collective buying, and Travel Business Group that makes merchandising
and relevant operation for products sold in Kanto area.
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