ANA Group Announces Route Network and Corporate Plan for FY2011
- First service to inland China with launch of Narita-Chengdu route -
- Launch of Joint Venture with United Airlines and Continental Airlines -
- Increase in capacity to meet demand and further enhance profitability -

TOKYO January 18, 2011 - ANA Group, Japan’s leading airline, today announced details of its route network and corporate plan for the financial year commencing on April 1, 2011
Following the expansion of capacity at Tokyo airports in FY2010, ANA has worked to establish new destinations and increase flights on existing routes. A further increase in runway slots is planned in the medium term, and this represents an opportunity for ANA Group to expand operations in what is becoming an intensely competitive business environment. In addition, the airline industry generally is facing more competition from other modes of transport, for example the opening of full Shinkansen bullet train services to Kyushu.
In this environment, ANA plans to optimize its fleet and increase the efficiency of its operations further, to ensure stable positive cash flow and increased profits. At the same time, ANA will work to improve passenger service and choice by launching its joint business venture with United Airlines and Continental Airlines.

1. Overview

1) Overview of International Passenger Services

(1) Launch of Narita-Chengdu Route
ANA plans to launch flights between Narita and Chengdu in June 2011, its first service to an inland destination in China. While ANA currently operates regular scheduled passenger services to 9 cities and 10 airports in China, they are all coastal destinations. As part of the Chengyu Economic Zone*, Chengdu has been designated by the Chinese government as a key development zone. The city and its surrounding region comprise an economy with nearly 100 million people which is expected to witness further economic and population growth in the mid- to long-term. The area is also rich in tourist attractions, including World Heritage sites such as the Jiuzhaigou Valley and the Huanglong Scenic Area, and offers distinctive Sichuan cuisine which is popular in Japan. While access to China’s interior previously involved taking connection flights through Beijing, Shanghai, or other cities, these direct flights will offer improved convenience for the traveler.
*Chengyu Economic Zone: An economic zone centered around the cities of Chongqing, and Sichuan Province’s Chengdu.

Details of the service are as follows (Subject to approval by relevant authorities):

(2) Strengthening Routes to China and Asia
ANA also plans to increase frequency on its Haneda-Beijing and Haneda-Shanghai routes after the aviation agreement between Japan and China concludes. Introduction of additional Boeing 767-300ER aircraft will see the introduction of a larger aircraft on Narita-Beijing and Narita-Taipei (Taoyuan) services.

(3) Strengthened Product
ANA will continue to roll out cabin improvements in its fleet of Boeing 777-300ER (installing ANA STAGGERED seats in Business Class and fixed back shell seats in Economy Class), which have been well-received on European and American routes. It will also expand the number of routes featuring these products. Introduction of additional newly designed Boeing 767-300ER aircraft (equipped with the ANA BUSINESS CRADLE in Business Class and fixed back shell seats in Economy Class) will offer improved product, primarily on Southeast Asian routes.

(4) Launch of Trans-Pacific Joint Venture with United Airlines and Continental Airlines
Following the granting of anti-trust immunity by Japan and U.S. authorities, ANA Group will commence its joint venture (JV) with United Airlines and Continental Airlines on trans-pacific routes on April 1, 2011. The three airlines have already worked together through code sharing, mileage alliances, and collocation of departure terminals as Star Alliance partners. Implementation of the JV will call for integration of the airlines’ domestic and international networks, along with common fares, and adjustments to their respective timetables. This will enable passengers to choose from a wider selection of convenient flight combinations, while also retaining each carrier’s unique service features. On routes operated under the JV, passengers will also earn miles under the same terms and conditions of their existing mileage programs, regardless of which airline they choose to fly with. Details of fares will be provided in a separate announcement.

Overview of JV

Example of enhanced timetable for connections at Tokyo, Narita under the JV


2) Overview of Domestic Passenger Services

(1) Routes at Tokyo, Haneda
Further additional slots by introduction of the Haneda fourth runway, together with provisional slots given until the Japan/China aviation agreement* concludes, we expect to increase 7 routes in and out of Haneda Airport, ANA’s main hub for domestic network. In particular for Haneda=Itami routes, it is planned that the early morning flights will be increased by utilizing aircrafts stationed overnight at the airport.
* Subject to change during the period in question depending on the status of aviation agreement between Japan and China.

(2)Routes at Osaka (Itami, Kansai), Chubu, and other Airports
Given significant changes in the competitive environment, such as the launch of rival airline services and the start of full Shinkansen bullet train services to Kyushu in March 2011, ANA will maintain the increased level of frequencies implemented in FY2010. Other plan includes increased services to and from Osaka (Itami, Kansai) and Chubu, extend periods of seasonal service (flight increases), and resume its Matsuyama=Chitose route which will increase its frequency to compete with the Sanyo/Kyushu Shinkansen service.
Since July 2010, ANA has created a regional hub at Chitose airport to serve increased demand for connections to/from Hokkaido. Furthermore starting in June 2011, ANA will implement a new strategy to meet the seasonal fluctuations in demand, through optimizing flight frequencies, choosing appropriate type of aircraft, and introducing convenient timetables.


3) Overview of Cargo Services
As in FY2010, ANA will continue to improve the profitability of its late night cargo hub in Okinawa for its freighter service, and increase daytime routes to China and Asia. ANA will also increase cargo capacity on passenger services by operating more flights using larger aircraft with greater space in their cargo bellies.

 

2. Content

1) International Passenger Services

Newly Launched & Resumed


Increased Frequency


Aircraft-type Changes


2) Domestic Passenger Services
Increased Frequency (at Haneda Airport)



Resumed Service, Increased Frequency, Extended Periods of Operation (Itami, Kansai, Kobe, Chubu, and others)


Temporary Suspensions, Decreased Frequency, Shortened Periods of Operation


3) Cargo Services
Increased Frequency


4) Fleet Plan

Preparations are underway for the commencement of flights using the much anticipated Boeing787, expected to be delivered during FY2011.
Until then, more Boeing 767-300ERs will be added on international routes, and Boeing 737-800 on domestic routes; work is being done to secure production volume to meet the recent increase in demand. ANA will also proceed with replacement of older aircraft, beginning with the retirement of the Boeing 767-300 on domestic routes. Retirement of the DHC8-Q300 will also begin, and a gradual consolidation of aircraft to the DHC8-Q400 model will be implemented for propeller aircraft.


5) ANA Group Capacity in FY2011


 
Contact: Ryosei Nomura or Megumi Tezuka, ANA Public Relations TEL +81-6735-1111
 
ANA Group Announces Route Network and Corporate Plan for FY2011