Category Archives: ANA-All Nippon Airways

ANA announces revised flight schedule for the second half of FY2021

ANA – All Nippon Airways made this announcement:

  •  ANA will be increasing frequency on select domestic routes to and from Tokyo Haneda and will be strengthening its cooperation with Peach to optimize the ANA Group’s network, maximizing profit by responding to the expected recovery in demand as vaccination rollout expands.
  • • For international routes, ANA will continue to closely monitor border measures in each country as well as increased use of vaccine passports, and will respond to shifts in demand.
  • • Given strong demand for cargo operations, ANA will focus on increasing revenue by expanding the number of destinations to operate freighters and by utilizing passenger aircrafts for cargo operations.

All Nippon Airways (ANA), Japan’s largest and 5-Star airline for eight consecutive years, has announced its revised flight schedule for fiscal year 2021 (FY2021).

In the current fiscal year, ANA has responded to the decline in demand for both domestic and international routes caused by COVID-19 by reducing the number of flights and adjusting operations to optimize business. However, to meet the strong demand for cargo transportation, ANA has responded by demonstrating flexibly in its business plans, actively operating freighters, and passenger aircrafts for cargo operations.

As demand in overseas markets continues to recover alongside vaccine availability and increasing vaccination rates, ANA expects for demand within the Japanese market to follow. ANA will continue to closely monitor demand and is committed to increasing flexibility so that it can respond appropriately to future trends.

The key points for the second half of FY2021 are as follows:

Domestic Routes

  • • ANA will increase flight frequency on the Haneda-Sapporo and Haneda-Fukuoka routes and operate select routes as seasonal and/or limited flight operations. As demand recovers, ANA will operate flights with larger aircraft while also utilizing international aircraft to operate additional flights in response to rising demand. However, in areas where demand is in decline, ANA will reduce the number of flights and downsize the aircraft used while it adapts to trends in demand.
  • • With regard to the Hokkaido and Okinawa routes primarily departing from Chubu airport and Fukuoka airport, ANA Group will optimize the capabilities of its group network by scheduling additional flights to be operated by Peach Aviation, an airline known for its appeal among leisure travelers.
  • • Because the impact of COVID-19 continues to affect our business, ANA will continue to monitor demand trends and provide updated flight schedules on a monthly basis.

Routes to be increased for specific date ranges

Routes to be temporarily suspended or reduced for specific date ranges

  • 1: The number of flights for the current service are according to the fiscal year 2021 flight schedule. The actual number of flights may differ based on flight reductions due to COVID-19.
  • 2: In addition to the ANA flights listed above, Peach Aviation flights are also scheduled to begin or increased on this route.
  • 3: For January 25, 29 and 31 the frequency will be 3 round trips/day, and 2 round trips/day on other dates.
  • 4: For November 2, 7-8, 10-15, 17, 25, 28-29; December 1-3, 7-17, 19, 21-22, 24-31; January 1-4, 11, 13, 16-19, 21-22, 25-29; February 1-3, 6-8, 10-11, 16-21, 24; March 4-5, 7-8, 11, 14 the frequency will be 3 round trips/day, and for other dates the frequency will be 2 round trips/day.
  • 5: For November 3-5, 8-10, 12-13, 16, 19, the frequency will be 1 roundtrip/day, and 0.5 round trip/day for December 7, 9.
  • 6: For December 1, the frequency will be 1.5 roundtrip/day, and 1 round trip/day on other dates.
  • 7: For November 5, 9, 13-14, 19-20, 24-25, 30; December 1-6, 8-9, 12-13, 17, the frequency will be 1 round trip/day. For October 31, November 1, 4, 6, 8, 10, 12, 15-16, 18, 21, 23, 26-29, December 7, 10-11, 14, 16, 18, January 31, February 1, 4-5, 15-16, 18-19, 21-22, 25-26 the frequency will be 0.5 round trip/day.

International Routes

  • • In order to provide customers with more information and to allow for earlier travel preparations, the suspension or reduction of select routes have been determined as follows.
  • • By making changes such as the transfer of the Tokyo Haneda-Washington D.C. and Tokyo Haneda-Houston routes to Tokyo Narita airport, ANA aims to accommodate demand for connections between Asia-North America while simultaneously maximizing the revenue per flight from both passenger and cargo operations. ANA will continue to flexibly respond to demand by reassessing our flight schedule on a monthly basis.

Period for change: October 31, 2021 to March 26, 2022

Freighter Routes

  • • Boeing 767 freighters will continue to operate the Beijing route, which has been in operation since July 2021. In addition, Boeing 777 freighters will be introduced on the Hong Kong, Taipei and Qingdao routes as non-scheduled flights. By expanding the number of destinations served with large freighters, ANA aims to capture demand for large-scale cargo deliveries. ANA will also add both non-scheduled and charter freighter flights in addition to utilizing passenger aircrafts for cargo operations. ANA remains committed to flexibly adapting its operations to meet market trends.

Period for change: October 31, 2021 to March 26, 2022

  • 1: The number of flights for the current service are according to the fiscal year 2021 flight schedule, therefore the actual number of flights may differ.
  • *In addition to the above flights, non-scheduled and/or charter flights are expected to be added (including Boeing777F freighters to Hong Kong, Taipei, Qingdao) according to monthly plans.

Photo: ANA (All Nippon Airways) Boeing 787-9 Dreamliner N2005B (JA935A) (msn 66522) (Inspiration of Japan) PAE (Nick Dean). Image: 954624.

Will become JA935A on delivery

Copyright Photo: Will become JA935A on delivery: ANA (All Nippon Airways) Boeing 787-9 Dreamliner N2005B (JA935A) (msn 66522) (Inspiration of Japan) PAE (Nick Dean). Image: 954624.

Historic Photo: ANA (All Nippon Airways) Boeing 767-381 JA8288 (msn 24415) (Pocket Monsters) HND (Roy Lock). Image: 954590.

1999 767 "Pocket Monsters" special livery

Copyright Photo: ANA (All Nippon Airways) Boeing 767-381 JA8288 (msn 24415) (Pocket Monsters) HND (Roy Lock). Image: 954590.

ANA slide show:

ANA Holdings reports a loss for the fiscal first quarter

ANA Holdings and the ANA Group issued this report for the fiscal quarter ending on June 30, 2021:

  • While the net loss for the first quarter of FY2021 was 51.1 billion yen, it represented the least amount of loss since the fourth quarter of FY2019
  • • The results were led by the highest-ever quarterly international cargo revenue and continued cost cutting measures
  • • ANA Holdings Inc. remains committed to returning to a profit for FY2021, backed by recovering travel demand, strong cargo business, continued cost cutting measures and the growth of non-aviation businesses

ANA Holdings reported its financial results for the three months ended June 30, 2021.

Overview
In the first quarter of fiscal year 2021 (April 1, 2021 – June 30, 2021, hereinafter the “three months ended June 30, 2021”), although the Japanese economy is still severely affected by COVID-19, corporate activities and capital investment continued to rebound. However, lower personal consumption figures indicate lingering weaknesses as well.

There have been signs of recovery in the airline industry, especially increased demand within the United States and European countries where an increase in vaccination rates has progressed. However, hurdles still remain on many international routes due to restrictions on entry and travel in a number of countries.

Despite these challenges, ANA HD renewed its commitment to its longterm environmental goals in April, setting targets such as reducing CO2 emissions generated by airline operations to net zero by 2050. In June, ANA HD also issued Sustainability-Linked Bonds, for which terms and conditions vary according to specific ESG goals being achieved.

For the three months ended June 30, 2021, operating revenues increased from the previous year to 198.9 billion yen. The operating loss was 64.6 billion yen, the ordinary loss was 63.7 billion yen, and net loss attributable to owners of the parent was 51.1 billion yen. While COVID-19 continues to impact performance, the results represented the least amount of net loss since the fourth quarter of FY2019.

“Our performance this quarter has validated the strategic approach adopted by the entire ANA Group in the face of numerous and complex challenges that have affected the entire airline industry,” said Ichiro Fukuzawa, Executive Vice President and Chief Financial Officer of ANA HOLDINGS INC. “Though COVID-19 and accompanying immigration restrictions have dampened demand for international travel, this turnaround was made possible by the impressive growth of our cargo business, rebounding travel demand, and targeted cost-cutting measures that have led to the greatest improvement in quarterly financial results since COVID-19 started impacting our business in the fourth quarter of FY2019.”

ANA HD has started to apply the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020),” and other accounting standards beginning this fiscal year. Values for the three months ended June 30, 2021 reflect these accounting standards. For details, please refer to “ANA HOLDINGS INC. Consolidated Financial Results For the Three Months Ended June 30, 2021” on the ANA Group Investor Relations website (https://www.ana.co.jp/group/en/investors/blank).

Air Transportation

  • 1. International Passenger Service (ANA)

    • ・For international passenger services, travel demand in all regions remained suppressed due to the impact of COVID-19. However, revenue and the number of passengers increased year-on-year due to a gradual recovery in business demand, primarily for expatriates traveling between Japan and overseas, and connecting demand from Asia to North America as the United States scaled up its vaccination efforts.
    • ・While large-scale route network suspensions are still occurring, we are closely monitoring demand to determine which routes to continue operating and are looking for opportunities to offer temporary routes to destinations with specific demand including cargo volumes.
    • ・ANA conducted trials of both Common Pass and IATA Travel Pass with the aim of introducing universal digital certificates containing electronic medical records such as COVID-19 test results and vaccination history. We will continue to work with all relevant parties to achieve a streamlined immigration control process.

As a result, revenue from international passenger service increased to 12.9 billion yen (up 36.5 percent year-on-year).

  • 2. Domestic Passenger Service (ANA)

    • ・While a State of Emergency has repeatedly been declared in Japan due to a resurgence in COVID-19 cases, the number of passengers and revenue has more than doubled compared to the same period in the previous year, when the impact of COVID-19 was the most severe.
    • ・Detailed adjustments to the route network capacity were made in response to fluctuations in demand, and ANA will continue to closely align its services with the expected recovery in demand as vaccinations progress.
    • ・ANA remains committed to ensuring a clean and hygienic environment through the “ANA Care Promise” program. Together with JAMCO Corporation, ANA jointly developed the world’s first hands-free aircraft lavatory doors, which are being rolled out gradually beginning in May. Going forward, we will continue to strive to provide safe and comfortable services at every stage of the travel experience.

Revenue from domestic passenger service increased to 50.2 billion yen (up 123.5 percent year-on-year).

  • 3. Cargo Service (ANA)

    • ・For international cargo services, ANA Cargo actively responded to strong demand by operating additional one-time cargo flights and utilizing passenger aircraft to fly cargo dedicated flights. In addition, ANA Cargo introduced freighter aircraft for use on certain routes, for example operating the Boeing 777F aircraft on the Tokyo Narita – Los Angeles route. By capturing demand for the transportation of goods such as automotive parts, semiconductors, and seasonal products including North American cherries, cargo volume greatly exceeded the amount transported during the same period in the previous year and quarterly revenue hit a record high.

Revenue from international cargo service increased to 66.0 billion yen (up 159.5 percent year-on-year).

  • 4. LCC (Peach Aviation)

    • ・While demand continues to be impacted by COVID-19, both passenger numbers and revenue increased compared to the same period in the previous year, when demand was most severely impacted.
    • ・After increasing the scale of domestic flight operations to above pre-COVID-19 levels in April, we controlled flights from May onward in light of the slowdown in demand that accompanied a resurgence in COVID-19 cases. We will continue to flexibly adjust the scale of operations and will closely monitor any shifts in demand that occur as vaccination progresses. All international routes are currently suspended due to continued immigration restrictions in a number of countries.

As a result, revenue from the LCC segment increased to 3.9 billion yen (up 128.5 percent year-on-year).

  • 5. Others

    • ・Other revenue from the Air Transportation business was 29.3 billion yen (down 7.2 percent year-on-year). This includes revenue from the mileage program, in-flight sales revenue, revenue from maintenance contracts and other sources.
  • Airline Related, Travel Services, Trade and Retail, and Others

    • ・For airline related business, operating revenue was 53.3 billion yen (down 10.9 percent year-on-year). As a result of cost cutting efforts of fixed costs such as personnel and outsourcing costs, operating income improved to 5.1 billion yen (up 522.6 percent year-on-year).
    • ・For travel services, while all overseas tours operated by ANA Group remain suspended due to the effects of COVID-19, domestic travel services increased its handling volume, particularly with dynamic travel package products offered online. As a result, operating revenue increased 190.5 percent year-on-year to 9.1 billion yen and the operating loss was 0.1 billion yen, compared to an operating loss of 2.7 billion yen the previous year. New initiatives initially conceived through proposals submitted by employees were rolled out, including in-flight wedding ceremonies, THE WEDDING with ANA, and in-flight restaurants, Restaurant with Wings, utilizing parked aircraft. Charter flights and in-flight restaurant experiences on the A380 “FLYING HONU” aircraft usually dedicated for the Honolulu route were offered as well. In April, we transferred ANA Sales Co., Ltd.’s travel business to ANA X Inc., which is in charge of platform businesses that utilize customer data assets. The aim of this transfer is to enhance sales in the digital field. ANA Sales Co., Ltd. changed its name to ANA Akindo Co., Ltd, with its main focus on revitalizing regions in Japan.
    • ・For the trade and retail division, ANA FESTA shops in airports saw an improvement in revenue due to recovering domestic passenger demand, and the handling volume of semiconductors for the electronics business increased. However, accompanying the change in accounting standards, operating revenues decreased 2.8 percent year-on-year to 19.1 billion yen, and the operating loss was 0.1 billion yen, compared to an operating loss of 1.3 billion yen in the previous year.
    • ・For other businesses, operating revenues decreased 7.1 percent year-on-year to 8.5 billion yen due to a decrease in demand for buildings and facilities maintenance due to the impact of COVID-19. Operating income was 0.3 billion yen, down 46.6 percent from the previous year.
  • Outlook for FY2021 (April 2021 – March 2022)
    ANA HD maintains its consolidated financial forecast for FY2021, presented on April 30, 2021.

 

Photo: ANA (All Nippon Airways) Boeing 787-9 Dreamliner JA927A (msn 61528) (Inspiration of Japan) PAE (Nick Dean). Image: 954572.

JA927A

Copyright Photo: Latest delivery: ANA (All Nippon Airways) Boeing 787-9 Dreamliner JA927A (msn 61528) (Inspiration of Japan) PAE (Nick Dean). Image: 954572.

ANA to install world’s first hands-free lavatory doors on 21 aircraft

All Nippon Airways (ANA), Japan’s largest and 5-Star airline for eight consecutive years, has partnered with JAMCO Corporation to develop the world’s first hands-free door that allows easy access to lavatories on its aircraft. The innovative door was developed as part of the ANA Care Promise initiative, and will help limit potential vectors for the transmission of pathogens. The first hands-free doors will be introduced to domestic flights starting May 1.

“Guided by the principles of ANA Care Promise, we have continued to invest in the development and implementation of innovative technologies because the health and safety of passengers and our staff is the top priority,” said Shinichi Inoue, Senior Executive Vice President, Customer Experience Management & Planning. “The hands-free lavatory door is the latest example of us putting this principle into practice as we look for ways to make the travel experience safer and more convenient.”

The new lavatory door is equipped with a large inner door locking knob and an additional handle so that passengers can use their elbows to unlock the door. Because the door mechanism is different to those found on other aircraft, signage has been placed near the lavatory to provide operational instructions.

ANA (All Nippon Airways) - Air Japan Boeing 787-9 Dreamliner JA899A (msn 34519) (Star Alliance) NRT (Akira Uekawa). Image: 953557.

Above Copyright Photo: ANA (All Nippon Airways) – Air Japan Boeing 787-9 Dreamliner JA899A (msn 34519) (Star Alliance) NRT (Akira Uekawa). Image: 953557.

The hands-free lavatory will be installed on 11 Boeing 787-8 Dreamliners, two Boeing 787-9 aircraft, and eight Boeing 777-200s. The initial installation will be for aircrafts serving domestic routes, while ANA hopes to introduce the system to all domestic and international aircraft in the future.

To help mitigate the spread of COVID-19 and other pathogens, ANA has instituted the ANA Care Promise program which goes above and beyond the recommendations from public health officials in order to keep passengers and employees healthy. With such efforts, ANA is the first airline in Asia and only the fourth in the world to receive the SKYTRAX Airline Safety 5-Star rating which confirms the effectiveness of ANA Care Promise.

ANA aircraft slide show:

ANA to temporarily change service on select international routes due to the Coronavirus

ANA – All Nippon Airways has made this announcement:

  • Starting from December, service for Tokyo Haneda = Honolulu will be increased from two round trips per month to two round trips per week. In addition, two round trips will be added during the end of the year and New Year holiday period.
  • Total service for Haneda – Honolulu between December to January will increase from four round trips to seventeen round trips.*1
  • In November, ANA will offer one flight per month for Tokyo Narita – Mumbai route as a tentative flight.
  • In November, service on the Tokyo Narita – Manila route will increase to three flights per week, and the Vienna – Tokyo Haneda route will increase to one flight per month.
  • *1 Haneda – Honolulu routes service date (the underlined are included in today’s announcement): Dec. 4, 7, 11, 14, 18, 21, 25, 29, Jan. 1, 2, 4, 8, 15, 18, 22, 25, 29. (Retrun flights will be departing on the next day)

All Nippon Airways (ANA) will temporarily change its flight frequency to select cities. Based on changes to immigration guidelines, recently instituted public health quarantine measures and passenger demand trends due to the widespread impact of COVID-19, we have decided to review our flight schedules from November to January for select routes. We apologize for the inconvenience caused and appreciate your kind understanding.

ANA will continue to monitor local immigration restrictions and quarantine guidelines as well as demand trends and travel viability as it decides on the frequency of flights and when to resume certain routes. In addition, ANA will promote the “ANA Care Promise,blank“, its initiative to provide a clean and hygienic environment at airports and aboard aircraft so that all customers can travel safely and comfortably.

Changes to the Schedule (November 1 – 30, 2020):
A total of 15 flights serving 3 routes will be affected from Nov. 1 to 30 by the changes announced today.
Overview:

  • *The total number of flights includes tentative flights.

Additional Announcements as of today:

  • *1 Flights operated by ANA under Air Travel Bubble established by Government of India for Japan.

Changes to the Schedule (December 1, 2020 – January 31, 2021):
A total of 26 flights serving 1 route will be affected from Dec. 1 to Jan. 31 by the changes announced today.
Overview:

Additional Announcements as of today:

  • * Operate on B789 (215 seats). Service on Dec. 11, 25, Jan. 1 and 15 will operate on B789 (246 seats).
  • * The announced plan above is subject to the approval of relevant authorities, and the aircraft may change depending on the flight status.

Due to the strengthening of quarantine measures in each region, changes in immigration conditions and other precautions are being implemented. For customers planning to travel, please check the latest information from embassies, consulates, and health institutions in your destination.

From September 25, all visitors traveling from Japan to China will be required to obtain a certificate showing negative results from a PCR test taken within 3 days prior to the departure date.

ANA aircraft photo gallery:

ANA to establish a low-cost 300+ seat 787 brand based on the Air Japan unit, will retire 22 Boeing 777s

ANA Holdings has announced transformative measures to a new business model, designed to strengthen the company’s operations and position itself for future growth. Through the ongoing crisis, ANA has taken steps to independently maintain our business operations, ranging from the suspension of flights to cost cutting measures. However, as the outbreak of COVID-19 is yet to settle, the ANA Group will carry out structural business reforms to address how travel has changed to build resilience toward any future global risks.

Overview
Qualitative and Quantitative Shifts in Air Travel Demand

  • ① Demand from business travel will decrease and likely not fully return to previous levels due to changes to the nature of work, such as the widespread popularity of online conferences and meetings.
  • ② Demand for leisure and visiting friends and relatives (VFR) will likely continue to remain robust, with potential growth from new segments including new working environments and multiple residency.
  • ③ New potential for demand is expected from untapped markets with preference for greater hygiene during travel, airlines with high ESG policies, adoption of contactless and automated options, simplistic services as well as more customization options.

“ANA HD is embarking on an ambitious transformation that will strengthen operations and position it for long term growth and success in a market still reeling from COVID-19,” said Shinya Katanozaka, President and Chief Executive Officer of ANA HOLDINGS INC. “As we work to fully account for the current situation, we will introduce a new business structure based on two major strategies. This comprehensive transformation initiative is not simply about cutting costs, instead it will address how travel has changed so that ANA HD has a framework for an entirely new, future-oriented operational strategy.”

  • 1. Transform the Group Airline Business Model

    • ・In addition to ANA and Peach Aviation Limited, establish a third airline brand based on the Air Japan unit, and pursue sustainable growth through transforming the services of the Group’s airlines to cater to a wider range of customer needs in price range and services.
    • ・Transform the services of each airline to match the values of the “new normal” during and post COVID-19, and through strengthening the cooperation in its marketing activities and smooth migration among the brands, actively promote measures to maximize the lifetime value of our customers.
  • ① ANA brand

    • ・As the premium airline brand of the ANA Group, transform into an airline that places an emphasis on “universal service” by providing new products and services that meet the needs of the post-COVID customers as a brand that is considerate to the well-being of people and the environment.
    • ・Utilizing digital technology, promote integrated services with a focus on “personalization” and “customized service.”
    • ・Realize a growth model that can continuously generate profits in the post-COVID era by improving productivity with more automated operations and improving work efficiency.
  • ② Peach Aviation

    • ・In addition to the existing leisure demand, expand the customer base to business passengers and families through wider cooperation in marketing with ANA through the addition of initiatives such as the exchange of ANA mileages to Peach Aviation’s points.
    • ・Further develop the Peach Aviation business by increasing cooperation with regional entities on new work and vacation styles and the utilization of customer information in promoting social media activity.
    • ・With its relocation to Terminal 1 at Narita Airport on October 25, expand demand through its improved convenience and synergies with ANA for travelers around the Tokyo metropolitan area.
    • ・Expand the medium-distance international routes with new A321LR aircraft-based products/services.
    • ・Enter the air cargo business in collaboration with ANA and ANA Cargo (ACX).
  • ③ New Airline Brand

    • ANA Group will establish a third airline brand around fiscal 2022, to raise profits by targeting demand for low-cost, medium-distance flights to destinations in Southeast Asia and Oceania.
    • ・By using the current Air Japan entity as the foundation, the brand will be capable of responding to sudden changes in demand and begin operations quickly after its establishment.
    • ・Low unit cost operations will be delivered on this brand through the utilization of the 787 aircraft configured with 300+ seats.
  • 2. ANA Group’s Transformation to a New Business Model

    • ・ANA Group will launch a data platform business based on the point-of-contact with all of our customers that we engage with in the airline business, travel business and business from our ANA branded credit cards to increase profits from our non-airline operations.
    • ・Through employing the strategies ANA Group has accumulated for more than 10 years from its regional and metropolitan businesses, redefine the business in regional areas and by making use of a wide range of resources, deliver value to both the local regions and ANA.
  • ① Realization of a New Data-Driven Platform Business

    • ・Led by ANA X, create a data platform business that best utilizes the customer data accumulated from the ANA apps, website and other digital touchpoints of the ANA Group.
    • ・With a focus on the airline, travel and ANA branded credit card business with transaction volume of approximately 4 trillion yen (based on 2019 figures), create value beyond the airline operations by maximizing the lifetime value of our customers through all businesses of the ANA Group.
  • ② Reorganization and Digitization of the Travel Business

    • ・ANA Sales Co., Ltd. will be split off, and its travel business unit will be merged with ANA X Co., Ltd., to build a data-driven platform business unit (aimed to launch in April 2021).
    • ・Digitizing the travel business will help the customers be introduced to ANA Group’s platform business.
  • ③ Evolve the Airline Sales Business to a Regional Business Development Entity

    • ・The efficiency of the airline sales business at ANA Sales will be improved and in addition, the unit will evolve into a regional business company that will serve a range of trade purposes and raise the presence of the ANA Group and develop new attractions in regional areas. The unit will develop goods and services for a digital platform in each local area and deliver ANA Group goods and services to each region simultaneously as well.
  • 3. Temporary Downsizing of Operations, and Other Measures to Offset the Impact of COVID-19

    • ・Through reviewing the cost structure to overcome the COVID-19 crisis, ANA Group will strategically plan a profitable route network and temporarily reduce the scale of the airline operations by further cost cuts centered on fixed costs such as reducing the aircraft fleet.
    • ・To transform into a new business model and position us for future growth, we will implement various measures to protect jobs.
    • ・The cost reduction effects is expected to be approximately 150 billion yen* for this fiscal year, and approximately 250 billion yen* in fiscal 2021.

      • *Comparison with our initial plan for FY2020 with total cost cut impact from reducing fixed costs.

1) Review and adjust the scale and route network of the Group’s airline operations

  • ① ANA brand

    • ・International route network: Based on the immigration control, public health quarantine measures and passenger demand, resume operations on routes from Haneda Airport. Position Narita airport as a key location as well, and gradually resume operations.
    • ・Domestic route network: Prioritize the operations and business centered around destinations with higher demand, and manage the scale of operations through utilizing smaller aircrafts.
  • ② Peach Aviation brand

    • ・International route network: Resume operations flexibly based on trends in demand.
    • ・Domestic route network: Through maximizing the strengths as a LCC and strategically differentiating with ANA, prioritize the operations and business centered around Kansai and Narita. In December 2020, expand network at Chubu airport.

2) Reform the Cost Structure Focusing on Fixed Costs

  • ① Downsize fleet through reducing large-sized aircrafts

    • ANA will retire a total of 35 aircraft in 2020, an addition of 28 aircraft from its initial plan of seven.
    • ・Out of the 35 aircrafts to be retired, 22 are the Boeing 777 models. The delayed delivery is for one Boeing 777 and one A380 aircraft, resulting in a reduction of 24 large-sized aircrafts compared to the initial plan for the end of FY2020.
    • ・The entire ANA Group’s fleet, including Peach Aviation, will be reduced by 33 aircraft compared to the initial plan for the end of FY2020.
    • ・Investments on capital expenditure will be reduced or delayed for preexisting orders of aircrafts.
  • ② Cost reduction in procurement

    • ・Centralize procurement functions on goods for inflight services, maintenance components, vehicles and expendable goods to cut costs and raise efficiency in the negotiation and purchasing process.
    • ・Through centralizing the procurement functions, improve the accuracy in purchasing, delivery, and warehouse management.
  • ③ Cost reduction in office space rent

    • ・Reduce office space rent by downsizing and consolidating offices based on the usage level of each office from the changed work styles.
  • ④ Review unprofitable businesses and assets

    • ・Dissolve the PanAM International Flight Academy in USA.
  • ⑤ Increase cooperation among the maintenance units

    • ・Deepen the cooperation between ANA, Peach Aviation and partner airlines to build a productive maintenance structure.

3) Measures to Maintain Employment for Future Growth
ANA Group will reduce labor costs through shifting outsourced business to in-house development and temporarily relocating employees internally and externally, and protect the laborforce for future growth.

  • ① Shift outsourced business to in-house development

    • • Shift to in-house management of previously outsourced tasks such as the maintenance of aircrafts and engines, ground handling at airports and maintenance facilities.
  • ② Reorganization and relocation of staff within the ANA Group

    • • Maximize efficiency and productivity through the relocation of staff among different airports, locations and business units.
  • ③ Dispatch ANA Group employees to external entities

    • • Dispatch employees to improve hospitality and service skills to companies with a laborforce shortage.
    • • The jobs at the external entities will be call center work, hotel concierge, reception and secretarial jobs, and by December 2020, we plan to dispatch about 100 employees to 10 companies. We will continue to expand the scale and expect more than 400 employees to be dispatched by next spring.
  • ④ Measures related to wages

    • • Curb wage-related costs through a proposal to the labor union on reducing wages, bonuses, expansion of unpaid leaves and other measures.

ANA reports a net loss of 188.4 billion yen for 6 months ended September 30, 2020

ANA Holdings has made this announcement:

ANA Holdings Inc. has reported its financial results for the six months ended September 30, 2020.

Overview
In the first six months of fiscal year 2020 (April 1, 2020 – September 30, 2020; hereinafter the “six months ended September 30, 2020”), although the Japanese economy is naturally in a difficult position due to the effects of COVID-19, including a sudden decrease in corporate earnings and a weakening trend in terms of employment, we are now seeing movement toward a recovery.

The airline industries environment have faced an unprecedented worldwide severe condition, because the passenger demand dramatically decreased by immigration restrictions and stay-at-home requests.

Under these economic conditions, operating revenues decreased rapidly to 291.8 billion yen due to the severe impact on all segments. ANA Group implemented cost reduction measures of 333.0 billion yen by decreasing the fixed expenses, in addition to reducing variable expenses due to curbing the scale of operations. However, due to the extremely large reduction in operating revenues, operating loss was 280.9 billion yen, ordinary loss was 268.6 billion yen and net loss attributable to owners of the parent was 188.4 billion yen due to the recording of deferred tax asset of about 76 billion yen, etc.

“Compared with the first quarter, the second quarter has recovered significantly, which proves that we’ve already bottomed out and are seeing dramatic recovery.”, said Ichiro Fukuzawa, Executive Vice President and Chief Financial Officer of ANA HOLDINGS INC. “Though we have faced cumulative losses in the first half of the fiscal year, the entire organization has shown strength and resolve in uniting to make the necessary sacrifices and support the required changes to get us through this COVID-19 outbreak and positioned for the future. I am confident that the shared spirit of the ANA Group and its employees, combined with our Business Structure Reform Plan, we will lead to future growth and success.”

  • ・Due to the effects, customer demand decreased dramatically and operating revenues have significantly decreased year on year.
  • ・Although passenger demand for domestic routes has recovered steadily since the emergency travel restrictions were lifted in May, demand for international routes remains greatly diminished.
  • ・In addition to reducing fuel costs and airport landing fees by constraining the scale of operations to match the decline in demand, the ANA Group also took steps to reduce personnel costs, such as remuneration for officers, wages of managerial personnel and bonuses, but a large operating loss was still recorded.
  • ・Furthermore, as the impact of COVID-19 continues, the ANA Group has engaged in the creation of clean and sanitary environments in airports, lounges, and aircraft cabins to enable customers to use aircraft safely and with reassuring comfort.

Air Transportation

  • 1. International Passenger Service (ANA)

    • ・In the international passenger services, both passenger numbers and revenue decreased significantly year on year. This was due to continuation of the substantial decline in passenger demand from April onward due to the continuation of immigration restrictions in countries worldwide caused by the effects of COVID-19.
    • ・In terms of the route networks, Large-scale operation suspensions, and reduced flight numbers persist in route networks, and we have worked to ascertain the demand of personnel stationed overseas, personnel returning to Japan from overseas, etc., and to select which routes to continue operating and to set temporary flights. As a result, the scale of operations was 15.6 percent compared to the same period last year.
    • ・In terms of sales and services, we set temporal discounted fares for one-way trips flying out of Japan in order to draw in demand for personnel being stationed overseas and foreign exchange students from August. Furthermore, starting from September we began offering customers the option to search, reserve, and pay for flights on “Google Flights,” a function offered by Google that compares airplane tickets, without going to the ANA official website, making it even easier for customers to reserve and purchase tickets for international flights.

As a result, revenue from international passenger service decreased by 318.9 billion yen (down 94.2 percent year-on-year).

  • 2. Domestic Passenger Service (ANA)

    • ・Domestic passenger services have been heavily affected by COVID-19, with passenger numbers and revenues decreasing significantly compared to the same period in the previous year. After the emergency restrictions were lifted in May, although passenger demand has steadily recovered, this demand may still be readily affected by trends in the number of people infected with COVID-19.
    • ・In terms of the route networks, the scale of operations for the first quarter was 26.7 percent year-on-year, but by increasing the number of flights in tandem with the recovery in demand, this number went up to 50.7 percent for the second quarter (July-September, 2020). We will continue our focus on the state of the spread of COVID-19 and demand trends, and work to flexibly optimize the scale of operations.
    • ・In terms of sales and services, although we had previously offered, in light of the effects of COVID-19, special measures to refund the tickets or change the boarding date without any additional fee until June, starting in July we began “Free and Easy Change Campaign” that would allow our customers to change flight dates and destinations without handling fees so that our customers could safely use fly with us without worry even as the future degree to which COVID-19 would spread remained uncertain. Furthermore, as the number of flights increased, in July we also reopened a portion of Terminal 2 of Haneda Airport that had been closed off, and introduced our self-service baggage drop machine, “ANA Baggage Drop” at Osaka(Itami) Airport, the fifth airport in Japan at which we have used these machines, in order to better improve our convenience as a full-service carrier.

Revenue from domestic passenger service decreased by 289.7 billion yen (down 78.6 percent year-on-year).

  • 3. Cargo Service (ANA)

    • ・With respect to international cargo, even as the effects of COVID-19 caused suspensions and reductions of passenger flights at a global scale, and the amount of supplied cargo space trended low, an increase in demand for emergency cargo such as masks combined with a steady recovery in demand for completed vehicles and vehicle components, as well as semiconductors and other electronic equipment has prolonged the tightness of demand from August. In these conditions, the ANA Group has worked to draw in this demand by setting temporary flights and charter flights using cargo aircraft, and assertively promoting the operation of temporary cargo flights using passenger aircraft. As a result, although transportation loads have decreased significantly compared to the same period last year due to the effects of large scale operation suspensions and flight reductions of passenger flights, we were able to ensure revenues at levels comparable to the previous year.

Revenue from international cargo service decreased by 0.3 billion yen (down 0.6 percent year-on-year) and revenue from domestic cargo service decreased by 3.9 billion yen (down 31.6 percent year-on-year).

  • 4. LCC (Peach Aviation)

    • ・Both passenger numbers and revenue of Peach Aviation decreased significantly year on year due to the suspension and reduction of flights in tandem with the decline in demand caused by the effects of COVID-19. Although passenger demand for domestic routes has been recovering steadily since the emergency restrictions were lifted in May, demand is still lower when compared to the same period for the previous year.
    • ・With respect to route networks, although the scale of operations for domestic routes in the first quarter were 42.0 percent year-on-year, we restored routes and expanded on our routes, such as our newly established Narita to Kushiro and Narita to Miyazaki routes, in our network to coincide with increases in passenger demand, thereby resulting in the scale of operations for the second quarter (July – September, 2020) that was 112.4 percent year-on-year.
    • ・With respect to international routes, flights on all routes have been suspended since the middle of March due to immigration restrictions imposed by each nation, but as these restrictions ease, and other changes take hold, we will flexibly adapt to changes in our environment by, for example, restarting the following flights in October on a 3 round-trips per week schedule: Haneda-Taipei (Taoyuan), Narita-Taipei (Taoyuan), and Kansai-Taipei (Taoyuan).

As a result, revenue from the LCC segment decreased by 37.7 billion yen (down 81.7 percent year-on-year).

  • 5. Others

    • ・Other revenue in Air Transportation was 68.1 billion yen (down 37.5 percent year-on-year). This includes revenue from the mileage program, in-flight sales revenue, and revenue from maintenance contracts, etc.
  • Airline Related, Travel Services, Trade and Retail, and Others

    • ・As a result of a decrease in contracts for ground handling services, such as passenger check-in and baggage handling at all airports, and the decrease in contracts related to in-flight meals due to the impact of suspension and reduction of flights of various airlines due to COVID-19, operating revenues decreased to 119.8 billion yen (down 19.6 percent year on year). Meanwhile, operating income increased to 8.7 billion yen (up 17.6 percent year on year) due to the reduction of personnel expense.
    • ・Travel services have been heavily affected by the spread of COVID-19 with respect to both domestic and overseas travel services. Due to the effects of travel restrictions on overseas travel services, all tours operated by the ANA Group have been suspended. Furthermore, although domestic travel services are steadily recovering through various factors such as the support of our “Go To Travel” campaign, domestic travel services remain significantly below the levels seen during the same period of time last year. As a result of the foregoing, operating revenues have decreased to 13.8 billion yen (down 83.2 percent year-on-year) and an operating loss of 4.0 billion yen (compared to operating proft of 1.3 billion yen in the same period last year) was recorded.
    • ・The spread of COVID-19 has significantly impacted our retail division, primarily centered around ANA DUTY FREE SHOP airport tax-free stores, and ANA FESTA shops in airports. Although ANA FESTA is seeing a steady recovery in tandem with the recovery in domestic passenger service numbers, revenue losses are still significant when compared to the same period last year. Furthermore, in the lifestyle-industries business, trade in food, beverages, and amenities also decreased significantly. As a result, operating revenue decreased to 38.2 billion yen (down 49.6 percent year-on-year), and an operating loss of 2.8 billion yen (compared to operating proft of 1.9 billion yen in the same period last year) was recorded.
    • ・The revenue in the airline security business and the facility management business decreased due to closures of airport facilities and a decrease in construction projects caused by COVID-19. As a result, operating revenues decreased to 18.5 billion yen (down 11.6 percent year-on-year) and operating income decreased by 43.5 percent year-on-year to 0.8 billion yen.

Outlook for the FY2020 (April 2020 – March 2021)

  • ・The ANA Group is to announce its earnings forecast based on decisions made in line with information available at the present time; a forecast that has not been confirmed to date due to difficulties in making proper and rational calculations as a result of the effects of COVID-19, which has led to extreme uncertainty on income trends and similar factors.
  • ・There has been a significant declined in passenger demand, which has been severely affected by the immigration restrictions around the world and the voluntary restraints on movement within Japan that have accompanied the spread of COVID-19. While demand is gradually recovering in the second half, it is not expected to return to the level of the previous year and operating revenues for the year ending March 31, 2021 are predicted to be down about 60 percent on those for the year ended March 31, 2020. Meanwhile, operating revenues have suffered a significant downturn and profits of the year are significantly lower than those for the year ended March 31, 2020 despite efforts to cut variable costs by curtailing the scale of flights and to also make savings on fixed costs such as personnel and aircraft expenses. Consequently, as mentioned above, ANA Group expects to record an operating loss, an ordinary loss and a net loss attributable to owners of the parent for the year ending March 31, 2021.
  • ・Furthermore, it is expected that a special loss of 110.0 billion yen will be recorded, which includes 73.0 billion yen of impairment losses incurred as a result of the large-scale retirement of aircraft, which is being made to improve earnings as reported in “ANA Group’s Transformation to a New Business Model” announced today; note that these impairment losses include those on facilities and equipment.
  • ・At present, the forecast for consolidate results for the fiscal year ending March 31, 2021 is as follows: operating revenues 740.0 billion yen (down 62.5 percent year-on-year); operating loss 505.0 billion yen (from an operating income of 60.8 billion yen in the previous fiscal year); ordinary loss 500.0 billion yen (from an ordinary income of 59.3 billion yen in the previous fiscal year); and net loss attributable to owners of the parent was 510.0 billion yen (from a net income of 27.6 billion yen in the previous fiscal year).
  • ・These calculations were made based on the assumptions that the exchange rate is 110 yen to one U.S. dollar, and indices for fuel costs as follows; the market price for crude oil on the Dubai market is 40 U.S. dollars per barrel, while Singapore kerosene costs are 50 U.S. dollars per barrel.

JAL and ANA operated this Boeing 787 for the torch relay of Tokyo 2020 Olympic Games (now rescheduled)

2020 Tokyo Olympic Torch relay aircraft

JAL and ANA jointly operated this Boeing 787-8 Dreamliner (JA837J) for the torch relay flight of the Tokyo 2020 Olympic Games. The aircraft carries the logos of both carriers.

JA837J is pictured arriving at Tokyo (Narita) (NRT) on March 20 after completing the mission carrying the torch from Athens to JASDF Matsushima Air Base. This livery was applied for about only a week, until the plane got repainted to the regular JAL scheme soon after this landing.

This will become a very rare photo since the Tokyo 2020 Olympic Games has been rescheduled for July 23, 2021 due to the coronavirus crisis.

Top Copyright Photo: JAL and ANA Boeing 787-8 Dreamliner JA837J (msn 34860) (Tokyo 2020) NRT (Akira Uekawa). Image: 949531.

JAL aircraft slide show: