Category Archives: ANA-All Nippon Airways

ANA to launch aircraft featuring characters from Anime “Demon Slayer”

  • The campaign starting from Dec. 1 will include aircraft sporting livery inspired by the TV animation series. The special jet will be in service from late January, 2022, as we plan to introduce 2 aircraft within this fiscal year.
  • • Domestic flights will feature limited edition Demon Slayer cups and toys, while episodes of the show will be offered as in-flight entertainment on both domestic/international flights.
  • • A lottery to win special collaboration goods will be introduced for customers traveling on domestic flights and scenic flights will be introduced as well.

All Nippon Airways (ANA), Japan’s largest and 5-Star airline for nine consecutive years will feature the art and characters of the anime TV series “Demon Slayer” through a special limited promotion. In addition to a specially painted aircraft depicting characters from the show, domestic flights will offer Demon Slayer-themed paper cups and special paper toys for children. As part of the collaboration, planned for one year beginning from Dec. 1, 2021, episodes of the show will also be available as in-flight entertainment on domestic and international flights.
“We are excited to partner with Demon Slayer to generate excitement and share Japanese culture with a wider audience,” said Junko Yazawa, Senior Vice President, Customer Experience Management & Planning of ANA. “At ANA, we are constantly looking for ways to improve the travel experience, whether that be through the expansion of our award-winning service, the extension of our hygiene protocols or new entertainment experiences. We are confident that when our Demon Slayer-themed aircraft enter service in January 2022, they will offer a unique flight experience.”

  • 1. Specially painted aircraft: “Demon Slayer” Jet (To be introduced from end of Jan. 2022 on domestic flights)
    The special livery will be on the B767-300ER (aircraft number: JA616A) aircraft, and to commemorate this special collaboration, the design will feature the characters of the anime. In-flight services include a limited edition headrest cover and aprons for the cabin attendants, and unique in-flight announcements by the characters. While the design and aircraft type is yet to be decided, a second jet will enter service within this fiscal year. A scenic flight is also planned for the future as well.

    • *The aircraft to feature this special design is subject to change.
  • 2. Specially designed in-flight paper cups and toys (available from Dec. 1, 2021)
    On domestic flights (economy class only), specially designed cups and paper toys (18 varieties) for children will be rolled out.
  • 3. Special in-flight entertainment (available from Dec. 1, 2021 on domestic and international flights)
    Video program: 26 episodes of the “Demon Slayer” TV anime available.
    Audio program: 5 songs from the TV anime series original soundtrack and the “Demon Slayer” orchestra concert will be available.

    • *The content will vary depending on the time of the flight.
  • 4. ANA and “Demon Slayer” special goods (campaign to open on Nov. 15, 2021)
    For customers traveling on ANA domestic flights

    A lottery for original collaboration goods will be held for those traveling on ANA domestic flights during the target period.
    The first round will be for a set of 5 badges for 1,000 customers.
    Lottery registration period: November 15, 2021 – January 31, 2022
    Boarding period: December 1, 2021 – January 31, 2022

About “Demon Slayer”: A TV anime series based on the manga by Koyoharu Gotouge, published by Shueisha Jump Comics, which has sold over 150 million copies in its first 23 volumes. The story, featuring a boy named Tanjiro Kamado, whose family has been killed by demons and becomes a demon slayer in order to bring his sister, who has been turned into a demon, back to human form, has gained popularity for its story, and has become a hit series not only in Japan but all over the world. From October 16, 2020, “Demon Slayer: Kimetsu no Yaiba – The Movie: Mugen Train” which is the continuation of the TV animation was released as a theatrical animation, and from December 5, 2021, the new TV animation series will be broadcast.

ANA posts a loss for last six month

ANA Holdings issued this financial report for the last six months:

  • Recovery in travel demand was slow due to continued entry restrictions in many countries as well as the State of Emergency and corresponding measures in effect in Tokyo for more than 90% of the period. Conversely, ANA achieved record cargo revenue due to strong international demand.
  • • As an outcome of fixed cost reduction efforts, operating expenses have been reduced despite an increase in operations, leading to significant improvement in operating income.
  • • While an upturn in domestic passenger demand is visible and strong cargo demand continues, and together with company-wide cost reduction efforts will combined contribute to improved operating income, ANA Holdings Inc. has revised its full-year financial forecast. The revised forecast reflects the findings that projected second-half revenue will not be sufficient to cover lack of revenue during the first half of the fiscal year.
  • • Fixed costs have decreased by 30% compared to pre-COVID levels, leading to a significantly lower break-even point. ANA Holdings Inc. expects to return to profitability in the fourth quarter of fiscal year 2021 by leveraging the new cost structure to create profitability by harnessing recovering travel demand.

ANA Holdings reported its financial results for the six months ended Sept. 30, 2021.

Overview

In the first six months of fiscal year 2021 (April 1, 2021 – September 30, 2021; hereinafter the “six months ended September 30, 2021”), the Japanese economy is slowly recovering despite effects of the COVID-19 pandemic. The airline industry has seen signs of recovery in demand for domestic flights in the United States and other countries. However, challenges still exist due to restrictions on entry and travel in many countries.

Under these economic conditions, operating revenue for the first half of FY 2021 increased from the same time period for the previous year, reaching 431.1 billion yen. The continued impact of COVID-19 resulted in an operating loss of 116.0 billion yen, an ordinary loss of 115.5 billion yen, and a net loss attributable to owners of the parent of 98.8 billion yen, while overall losses are decreasing year-on-year.

“In the face of prolonged adversity and continuously changing market demands, ANA HD has leveraged its assets and expertise to adjust fundamental aspects of our business model to reflect the shifts in demand that have been caused by the pandemic,” said Ichiro Fukuzawa, Executive Vice President and Chief Financial Officer of ANA HOLDINGS INC. “I am proud of how the entire ANA team has responded to the pandemic, and their hard work and dedication has helped place the ANA Group on an upward trajectory that will return our entire business to profitability in the near future. We will continue seeking opportunities to drive growth that will persist after the pandemic and accompanying travel regulations subside.”

Air Transportation

Despite still being significantly impacted by the COVID-19 pandemic, passenger demand increased from the previous year, and by proactively working to capture the strong cargo demand which achieved record high revenue on a half-year basis, operating revenue exceeded the amount recorded during the same period of the previous year. While ANA HD still recorded an operating loss, reductions in fixed costs such as personnel costs as well as depreciation, amortization and maintenance costs which were achieved through the early retirement of aircraft in the previous year have helped improve profits and curtailed losses compared to the same period the previous year.

The Group provided transportation as an official airline partner of the Tokyo Olympic and Paralympic Games. In addition, ANA was selected as the best airline in four categories – including cabin cleanliness – in the SKYTRAX World Airline Awards 2021.

  • 1. International Passenger Service (ANA)

    • ・For international passenger services, travel demand continued to be reduced across all regions due to the resurgence of COVID-19 cases, the spread of new variants and continued government travel restrictions. 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, as well as connecting demand for flights from Asia to North America and demand for the Tokyo Olympic and Paralympic Games.
    • ・ANA reinstated North America flights to/from Tokyo Narita in July to accommodate recovering demand for flights from Asia to North America. The resumption of flights was part of a proactive effort to determine which routes meet emerging demand, as well as to offer temporary routes to destinations with seasonal demand and urgent travel needs.
  • 2. Domestic Passenger Service (ANA)

    • ・While State of Emergency and quasi-emergency measures were in effect in Tokyo for more than 90% of the period due to a resurgence in COVID-19 cases, the number of passengers served and revenue both increased compared to the same period in the previous year, when the impact of COVID-19 was felt more acutely.
    • ・Detailed adjustments to the route network capacity were made in response to fluctuations in demand. In addition, ANA started code-sharing on select flights operated by Peach Aviation Ltd. to further improve convenience for customers.
  • 3. Cargo Service (ANA)

    • ・For international cargo services, ANA actively responded to strong demand by deploying passenger aircraft to fly cargo-dedicated flights and fully utilizing the freighter aircraft, while introducing the Boeing 767F freighter on the Tokyo Narita – Beijing route in July. By capturing demand for the transportation of goods such as automotive parts and semiconductors from Asia as well as electronic equipment and vaccines from North America and Europe, cargo volume greatly exceeded the amount transported during the same period in the previous year and quarterly revenue hit a record high.
  • 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 more significantly impacted.
    • ・Peach introduced a new route, Osaka Kansai – Memanbetsu in July. We will continue to closely monitor signs of recovery in demand to further expand the network. All international routes are currently suspended due to continued immigration restrictions in a number of countries.
  • 5. Others

    • ・Other revenue from the Air Transportation business was 60.7 billion yen (down 10.8% year-on-year). This includes revenue from the mileage program, in-flight sales revenue, revenue from maintenance contracts and other sources.
    • ・As a new initiative during the COVID-19 pandemic, ANA began offering tours in July at the ANA Blue Base Group training facility, providing guests with a chance to experience the work of a pilot, an engineer or a flight attendant.

Airline Related, Travel Services, Trade and Retail, and Others

  • 1. Airline Related

    • ・Operating revenue: 97.6 billion yen, down 18.5% year-on-year
    • ・Operating income: 1.6 billion yen, down 80.6% year-on-year
    • ・In addition to a decrease in contracts for ground handling services such as passenger check-in and baggage handling due to the suspension and reduction of flights by various airlines, decreased handling volumes for systems development and other factors due to reduced investment owing to COVID-19, there was a decrease in operating revenue year-on-year.
  • 2. Travel Services

    • ・Operating revenue: 19.6 billion yen, up 42.0% year-on-year
    • ・Operating loss: 0.1 billion yen (operating loss 4.0 billion yen same period a year ago)
    • ・For travel services, all overseas tours operated by the ANA Group remain suspended due to the effects of COVID-19, and domestic travel volume decreased compared to the previous year when the “Go To Travel” promotion was in effect. ANA X Inc.’s contracting revenue increased as a result of the transferred digital marketing business and other functions within the ANA Group, and contributed to the increase in operating revenue and a reduced operating loss.
  • 3. Trade and Retail

    • ・Operating revenue: 38.3 billion yen, up 0.2% year-on-year
    • ・Operating income: 0 billion yen (operating loss 2.8 billion yen same period a year ago)
    • ・As aviation demand gradually recovered, sales increased at ANA FESTA shops in airports and the handling volume of semiconductors for electronics businesses increased. However, due to the change in accounting standards, the increase in operating revenue was minimal compared to the same period during the previous year.
  • 4. Others

    • ・Operating revenue: 17.4 billion yen, down 5.6% year-on-year
    • ・Operating income: 0.6 billion yen, down 22.5% year-on-year
    • ・Operating revenue decreased year-on-year due to a decrease in demand for buildings and facilities maintenance caused by the impact of COVID-19.

Outlook for FY2021 (April 2021 – March 2022)

  • ・While international cargo demand was strong, reduced passenger demand continued globally during the first half of the fiscal year due to a resurgence of COVID-19 cases and the spread of new variants. While domestic passenger demand has now started to show signs of recovery in correlation with the decline in reported COVID-19 cases, full-fledged recovery of demand is delayed compared to initial expectations.
  • ・In addition to curbing variable costs related to flight operations, ANA HD will initiate further cuts in fixed costs – such as maintenance and outsourcing costs – to reduce operating expenses. However, due to the significant impact of the decrease in operating revenue, operating income, ordinary income and net income attributable to owners of parent are expected to decrease as well.

As a result, we have revised the consolidated financial forecast for the fiscal year ending March 31, 2022, as shown in the table below.

  • *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 six months ended September 30, 2021 reflect these new accounting standards.

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.