Tag Archives: ANA Holdings

ANA converts two orders for the Boeing 777-9 to Boeing 777-8F freighters, and finalizes its existing purchase agreement for 30 Boeing 737-8s

ANA Holdings today announced that it has reached an agreement with the Boeing Company to convert two orders for the Boeing 777-9 aircraft to Boeing 777-8F cargo aircraft, and finalized its existing purchase agreement for 30 Boeing 737-8 aircraft.

The announcement reflects ANA HD’s plan to further expand its cargo business through securing large freighters and to replace the domestic fleet’s smaller planes with more fuel-efficient aircraft that will serve as the foundation for future growth.

1. Conversion to Boeing 777-8F aircraft
At a meeting of the Board of Directors held today on July 11, 2022, ANA HD decided to convert two of the 20 Boeing 777-9 aircraft that had been initially announced on March 27, 2014, with Boeing 777-8F cargo aircraft. The aircraft will be introduced into service on/after fiscal 2028.

The Boeing 777-8F is a state-of-the-art freighter that has the largest cargo capacity of any twin-engine aircraft, and has reduced CO2 emissions and operational costs that uses less fuel per ton.

2. Finalized purchase agreement of Boeing 737-8 (Boeing 737 MAX series) aircraft
The ANA Group today finalized its agreement for the purchase of Boeing 737-8 aircraft (20 confirmed and 10 optional), which was previously announced on January 29, 2019. The introduction of the aircraft is scheduled to begin in fiscal 2025.

The Boeing 737-8 had been suspended worldwide for approximately 1 year and 9 months due to two accidents. The FAA approved the resumption of operations of this aircraft in November 2020 with modifications to its system that were identified to be factors that led to the accidents and review in the crew training methods. As of today, 46 airlines worldwide have resumed operations of this aircraft, and it has been operating smoothly without any operational issues.

As the latest model in the Boeing 737 series, the Boeing 737 MAX family is equipped with next-generation engines with improved fuel efficiency, and its cutting-edge winglets (Advanced Technology Winglets) are expected to reduce fuel consumption by approximately 15 percent compared to the existing Boeing 737 NG model. The new aircraft will be introduced to replace the Boeing 737-800, which are currently in operation on domestic routes, and will offer a more spacious and comfortable cabin with less noise than the existing model.

ANA Group will continue to achieve the various initiatives in its growth strategy while raising safety as the foundation of its management and at the same time, strive to improve the quality and service for our customers.

Details of the Boeing 777-8F, Boeing 737-8

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ANA reports improved financial conditions

ANA Holdings Inc. today reported its financial results for the nine months ended December 31, 2021.

Overview
In the first nine months of fiscal year 2021 (April 1, 2021 – December 31, 2021; hereinafter the “nine months ended December 31, 2021”), the Japanese economy has slowly recovered, demonstrating signs of recovery in corporate production activities. While the airline industry continues to face difficulties due to the spread of the Omicron variant and continued restrictions on entry and travel in many countries, there are signs of recovery in the increased demand for domestic flights in the United States and other countries.

　Under these economic conditions, the increase in demand for travel in Japan contributed to an operating revenue of 738.0 billion yen for the nine months ended December 31, 2021. This marks an improvement from the same time period for the previous year. The continued impact of COVID-19 resulted in an operating loss of 115.8 billion yen, an ordinary loss of 118.3 billion yen, and a net loss attributable to owners of the parent of 102.8 billion yen. However, ANA HD achieved a positive operating income in the third quarter (October-December), returning to black for the first time in eight quarters.

“Though the entire airline industry has faced continued challenges, I am proud of how ANA Group employees have persevered to help the company continue to meet passenger and cargo needs and maintain global connections at this vital time,” said Ichiro Fukuzawa, Executive Vice President and Chief Financial Officer of ANA HOLDINGS INC. “We have adjusted our practices, but our commitment to offering unparalleled service and convenience remains unchanged. As the recovery continues, the ANA Group will continue seeking opportunities for growth and expansion with increased profitability.”

Air Transportation
Despite being significantly impacted by the COVID-19 pandemic, passenger demand increased from the previous year, and due to proactive efforts to capture the strong cargo demand which resulted in record high revenue, 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 execution of structural business reforms) have helped curtail losses and improve profits year-on-year.

1. International Passenger Service (ANA)
- ・International passenger services continued to see reduced demand for travel 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 demand for connecting flights from Asia to North America and demand for flights home during the New Year holiday. Revenue and number of passengers remained at approximately 10% of pre-COVID levels.
- ・ANA began transferring the operation of several North America routes from Tokyo Haneda to Tokyo Narita airport starting in July to optimize connections from Asia, an example of ANA closely monitoring demand to determine which routes to operate, as well as to offer temporary routes to destinations with seasonal demand and urgent travel needs.

2. Domestic Passenger Service (ANA)
- ・The number of passengers served and revenue both increased compared to the same period during the previous year. While a State of Emergency was repeatedly declared due to a surge in COVID-19 cases during the first half of the fiscal year, a recovery in demand was visible since the declaration was lifted at the end of September and the number of COVID-19 cases remained at a low level. As a result, the number of passengers and revenue in the third quarter (October-December) was the highest on a quarterly basis since the pandemic began and recovered to approximately 50% of pre-COVID levels.
- ・Detailed adjustments to the route network capacity were made in response to fluctuations in demand. In addition, ANA offered additional flights on weekends and holidays from October in order to proactively capture the recovering demand.

3. Cargo Service (ANA)
- ・The continued strong performance in international cargo services can be attributed to robust demand and a shift to air transport as a result of congestion in marine transport. ANA fully utilized freighter aircraft, introducing the Boeing 777F freighter on the Tokyo Narita – Hong Kong and Tokyo Narita – Taipei route in October, as well as on the Tokyo – Qingdao route in November. ANA also actively responded to strong demand by deploying passenger aircraft to fly cargo-dedicated flights and by capturing demand for the transportation of goods such as automotive parts, semiconductors, electronic equipment and vaccines. In the third quarter (October-December), cargo volume greatly exceeded the amount transported during the same period in the previous year, leading to record high in quarterly revenue for the fifth consecutive quarter.

4. LCC (Peach Aviation)
- ・Passenger numbers and revenue increased compared to the same period during the previous year, when demand was more significantly impacted. Domestic passenger volume and revenue for the third quarter (October-December) exceeded pre-COVID levels behind strong demand after the State of Emergency was lifted at the end of September, and another contributing factor was Peach Aviation’s expanded scale of operations.
- ・Peach introduced new routes, Osaka Kansai – Memanbetsu in July, and Fukuoka – Ishigaki in October. Peach 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 96.6 billion yen (down 9.8% year-on-year from 107.1 billion yen). 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

1. Airline Related
- ・Operating revenue: 149.8 billion yen, down 10.1% year-on-year
- ・Operating income: 2.6 billion yen, up 30.1% year-on-year
- ・Although operating revenue decreased year-on-year as a result of lower handling volumes for systems development due to reduced investment within the ANA Group owing to COVID-19, profit improved as a result of reduction in personnel and outsourcing costs, mainly for ground handling services such as passenger check-in and baggage handling.
- ・In November, the product line-up was expanded to include the popular online in-flight meal sales with the introduction of ANA international business class in-flight meals.
2. Travel Services
- ・Operating revenue: 34.5 billion yen, down 4.4% year-on-year
- ・Operating loss: 0.2 billion yen (operating loss of 4.7 billion yen during the 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 contract 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 reduced operating losses.
- ・Working to create a “world where people can live on miles,” the ANA Group launched a mobile application service called “ANA Pocket” in December, which allows users to earn points not only for air travel, but also for walking and travel on train as well as other vehicles within Japan that can be converted into ANA miles and other perks.
3. Trade and Retail
- ・Operating revenue: 61.4 billion yen, up 0.7% year-on-year
- ・Operating income: 0.6 billion yen (operating loss of 3.0 billion yen during the 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. 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: 27.6 billion yen, up 0.8% year-on-year
- ・Operating income: 1.1 billion yen, up 125.1% year-on-year
- ・While demand for buildings and facilities maintenance decreased due to the impact of COVID-19, increased transactions for the real estate business lead to improved revenue.

Outlook for FY2021 (April 2021 – March 2022)
ANA HD maintains its consolidated financial forecast for FY2021, initially presented on October 29, 2021.

*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 nine months ended December 31, 2021 reflect these new accounting standards. For details, please refer to “ANA HOLDINGS INC. Consolidated Financial Results for the Nine Months Ended December 31, 2021” on the ANA Group Investor Relations website

Top Copyright Photo: ANA (All Nippon Airways) Boeing 787-9 Dreamliner JA937A (msn 66524) (Inspiration of Japan) ITM (Akira Uekawa). Image: 956496.

ANA aircraft slide show:

ANA aircraft photo gallery:

ANA Holdings and Virgin Orbit agree to 20 LauncherOne flights from Japan

ANA Holdings, the owners of Japan’s largest airline, ANA, have announced that it has entered into a memorandum of understanding (“MOU”) with Virgin Orbit, the responsive launch and space solutions company that has announced a planned business combination with NextGen Acquisition Corp. II, and plans to procure twenty flights of the LauncherOne rocket and to lead the effort to provide funds and support for those orbital missions to launch from Japan’s Oita Prefecture.

The terms of the MOU call for ANA HOLDINGS and several of its partners to fund the manufacturing of a new set of the mobile ground support equipment used to prepare Virgin Orbit’s LauncherOne system for flight from a pre-existing runway, with a target of making Oita a LauncherOne-ready spaceport by as soon as the end of 2022, pending appropriate regulatory approvals in the United States and Japan.

Japan’s impressive aerospace industry has long been at the forefront of satellite technology innovation. However, the available launch services in Japan -and throughout all of Asia – have always been launched from fixed sites on the ground. Supported by ANA’s premier logistics and transport services, Virgin Orbit is set to change that by bringing air-launch to the Eastern Hemisphere for the first time in history.

By using a customized 747 as its flying launch pad, mobile mission control, and fully re-usable first stage, LauncherOne gains a substantial performance boost over a similarly sized ground-launched system. Additionally, the airplane’s ability to cover large distances between taking off and releasing the rocket provides both weather resiliency and direct-inject orbital flexibility that until now, has never been available on the Asian market.

Virgin Orbit’s flight-proven air-launch service provides a unique capability for ANA’s customer base in the booming commercial ecosystem for space in Asia. The number of space start-ups in Japan has increased since 2015, driven by increasing level of investment and government activities to energize and accelerate the private sector. The increasing amount of funding and investment in the space industry has encouraged start-ups to venture into space businesses, and legacy companies to expand their offerings – and launch is a critical enabler for those businesses and their future growth.

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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 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/).

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.

ANA Holdings commits to adding up to 20 Boeing 787 Dreamliners

Boeing and ANA Holdings (ANA HD) announced the Japanese airline group has decided to acquire up to 20 more 787 Dreamliner airplanes.

The agreement with Boeing includes 11 787-10s, one 787-9 and options for five 787-9s valued at more than $5 billion at list prices. The airline also plans to acquire three new 787-9 airplanes from Atlantis Aviation Corporation.

Once the agreements are finalized, it will be ANA’s sixth order for the ultra-efficient and passenger-pleasing Dreamliner and bring their overall 787 order book to more than 100 airplanes.

With this order, the airline will add 11 of the largest and most fuel-efficient Dreamliner models, the 787-10 to its world-class fleet. Powered by a suite of new technologies and a revolutionary design, the 787-10 set a new benchmark for fuel efficiency and operating economics when it entered service in 2018. The airplane allows operators to achieve 25 percent better fuel efficiency per seat compared to older airplanes in its class.

ANA sees the 787-10 as the perfect airplane to replace previous domestic 777 models that are slated for retirement.

ANA became the global launch customer of the 787 Dreamliner when it placed its initial order in 2004. Since then, like half of all Dreamliner operators, the Japanese carrier has placed follow-on orders. However, ANA is in a class by itself as the world’s biggest 787 operator with 71 airplanes in its fleet and 12 more to be delivered prior to the latest agreement. The new deal will bring the 11 additional 787-10 airplanes, one 787-9 and options for five more 787-9 jets.

ANA is also in the launch customer group for Boeing’s new 777X.

ANA HD’s new 787 jets will be powered by GE’s GEnx-1B engines. The new engines will contribute to the 25 percent improved fuel efficiency per seat of the 787-10.

Image: Boeing.

ANA aircraft photo gallery:

ANA Holdings acquires a 9.5% state in PAL Holdings

ANA Holdings has made this announcement:

ANA Holdings, Inc., parent of All Nippon Airways (ANA), will invest $95 million US dollars in PAL Holdings Inc. and acquire 9.5% of PAL Holding’s outstanding shares. PAL Holdings is the parent of Philippine Airlines Inc. (PAL), the Philippine flag carrier and the largest airline in the Philippines.

ANA HD will acquire the shares from Trustmark Holdings Corporation, which is owned by the Lucio Tan family and is the largest shareholder of PAL Holdings.

In line with the Mid-Term Corporate Strategy for FY2018-2022, the ANA Group is expanding its international group network, which is considered its main growth pillar, and strengthening its partnerships with foreign airlines to provide further convenience to its passengers.

This purchase underscores ANA HD’s belief in the dynamism of the Asian region and the great potential of the Philippines’ multi-awarded flag carrier and its confidence that the Philippine air travel market will continue to serve as an economic leader for the ASEAN region.

Additionally, the investment by ANA HD heralds the dawn of a new era of growth for PAL, which has embarked on a full-scale expansion program that has seen its fleet and network grow to almost 100 aircraft and 80 destinations in four continents. This campaign has coincided with an emphasis on product transformation that saw PAL recognized recently as the World’s Most Improved Airline for 2019.

ANA operates 14 flights weekly on 2 routes to the Philippines and Philippine Airlines currently operates 84 flights weekly on 9 routes to Japan. The two carriers have codeshare operations on Japan – Philippine routes and domestic routes within Japan and the Philippines, linking a total of 16 Japanese and 11 Philippine destinations.

Completion of the investment is subject to certain closing conditions.

Top Copyright Photo (all others by PAL): Philippines (Philippine Airlines) Boeing 777-3F6 ER RP-C7773 (msn 38718) LAX (Michael B. Ing). Image: 945498.

Philippines aircraft slide show:

ANA Holdings to order 48 Airbus and Boeing narrow body aircraft for ANA and Peach

ANA Holdings voted today at its board meeting to place an order for a total of 48 aircraft, which include 30 Boeing 737 MAX 8 and 18 Airbus A320neo. Deliveries are scheduled from FY2021 to FY2025.

The decision was based on the economic growth of Asia and emerging countries, with demand in the Asian aviation market and inbound demand on the rise. ANA HD and Peach Aviation Limited each selected its own optimum aircraft to fit its strategy to further grow. The specific markets that will be served by the new order have not been finalized.

Boeing 737 MAX 8, a first for a Japanese airline, is more spacious compared to the current aircraft and creates a comfortable atmosphere. The aircraft is also fuel efficient and is expected to improve the efficiency by approximately 15%. Given the plane’s benefits to the domestic market, it will succeed the current Boeing 737 NG series. ANA HD decided to place 30 aircraft on order, including 10 optional.

The Airbus A320neo, which currently serves ANA international routes, was chosen for its excellent fuel efficiency and cruising performance to support Peach’s current strategy, and an order for 18 aircraft will be placed.

ANA Group will maintain safety, which is the foundation of ANA Group’s business, enhance customer-oriented quality and service, and proactively invest to aircraft to steadily implement growth strategy.

It is official: Skymark Airlines turns to ANA, Japan returns to a duopoly

Skymark Airlines (Tokyo-Haneda) today (April 22) made it official. According to our partner ZipanguFlyer, the airline, Integral Corporation and ANA Holdings held a press conference today to announce the deal. As a result, Skymark Airlines will cease to be an independent carrier and Japan will basically return to a two-airline group nation.

Read the full story from ZipanguFlyer: CLICK HERE

ANA Holdings issued this statement:

Skymark Inc. (Skymark), Integral Corporation (Integral) and ANA Holdings Inc. (ANAHD) have today agreed upon and executed a memorandum of understanding (the “Memorandum”) stating that Integral and ANAHD will jointly support Skymark which is currently undergoing civil rehabilitation proceedings.

1. Background for the Execution of the Memorandum

Since the commencement order of the civil rehabilitation proceedings was announced on February 4, 2015, Skymark has signed a basic rehabilitation support agreement with Integral on February 5, 2015 and is working to quickly revitalize its business with Integral‟s support.

On February 12, 2015, Skymark appointed GCA Savvian Corporation as its financial adviser to broadly solicit and select sponsors who would be willing to support Skymark in its attempt to maintain and develop the value of Skymark‟s business. Following this selection process, Skymark has decided to appoint ANAHD to be the joint sponsor with Integral and has executed the Memorandum with Integral and ANAHD. ANAHD has experience with the rehabilitation of other Japanese airlines and has offered a wide range of support in sales, supplies and maintenance services to improve the value of Skymark‟s business.

ANAHD is the holding company of All Nippon Airways, ANA Wings, Air Japan Company Limited (full service carrier) Vanilla Air Inc. (a provider of low-cost carrier operations), ANA Sales Co., Ltd. (a travel business provider), All Nippon Airways Trading Company Limited (a trading business provider) and several other companies. ANAHD, whose mission statement is “Built on a foundation of security and trust, the „wings within ourselves‟ help to fulfill the hopes and dreams of an interconnected world,” is Japan‟s largest airline group, and has played a major role in Japan‟s air transportation services for over 60 years.

Beginning today, Skymark, Integral and ANAHD will, under the supervision of the Tokyo District Court and court appointed supervisor, hold detailed negotiations on the basis of the Memorandum and will execute sponsorship agreements and formulate a proposed rehabilitation plan (the “Proposed Rehabilitation Plan”) as part of the civil rehabilitation proceeding.

2. Main Points of the Memorandum

The Memorandum stipulates the basic conditions of the joint sponsorship by Integral and ANAHD of Skymark in order to achieve the revitalization of its business as an independent corporation, with shares issued by Skymark to be re-listed on the stock market as soon as possible.

The overview of the Memorandum is as follows;

(1) Capital Contribution and Payment of Debts

It will be stipulated in the Proposed Rehabilitation Plan that Skymark will perform a 100% capital reduction. After a confirmation order for the Proposed Rehabilitation Plan becomes final and binding, Skymark will perform a capital increase through the allocation of new shares. Integral, ANAHD and other entities will subscribe to these shares and become new shareholders.

The total amount of planned investment is 18 billion JPY, which will be used for the payment of debts (comprising common benefit claims, preferred claims and rehabilitation claims) outstanding at the time the confirmation order of the Proposed Rehabilitation Plan becomes final and binding.

The ratio of capital contributions and voting rights shall be apportioned such that Integral will hold 50.1%, ANAHD will hold a maximum of 19.9%, with other entities holding the remainder. Integral and ANAHD will mutually discuss the capital contribution by other entities and decide on such capital contribution by the time of submission of the Proposed Rehabilitation Plan.

In addition, Skymark is planning to execute commitment lines with financial institutions with the support of Integral and ANAHD to ensure that Skymark has the necessary working capital for its business operations.

(2) Board of Directors
After the confirmation order of the Proposed Rehabilitation Plan becomes final and binding, the number of directors to the Board of Skymark will be 6. Of these, 3 will be appointed by Integral, 1 will be appointed by ANAHD and the remaining 2 will be decided after discussions between Integral, ANAHD and other contributors. It is contemplated that one of the directors appointed by Integral will be the Chairman and one of the directors appointed by ANAHD or other shareholders will be the President.
(3) Employment of Employees
The employment of Skymark‟s employees will, as a general principle, be maintained.
(4) Re-Listing on the Stock Exchange
Integral and ANAHD have agreed to make their best efforts and mutually cooperate to work to the common goal of improving the value of Skymark‟s business and to re-list the shares issued by Skymark on the stock market within 5 years of their investment

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-8Q8 JA737T (msn 35290) completes its final approach to the runway at Tokyo (Narita).

Skymark Airlines aircraft slide show:

ANA firms up its order for seven additional Airbus A321s

ANA Holdings (ANA-All Nippon Airways) (Tokyo) has firmed up an order for seven more A321 aircraft (four A321ceo with Sharklets and three A321neo), following the previous announcement in January this year. This firm order brings ANA’s total order for the A320 Family to 37 aircraft (26 A321neo, four A321ceo with Sharklet, and seven A320neo).

ANA Group will be the first Japanese carrier to operate three variants of the A320 Family, the A321neo, the A321ceo and the A320neo. With an optimised use of cabin space called ‘Cabin-Flex’, the A321neo will typically seat up to 240 passengers while maintaining Airbus’ standard comfort standard of at least 18 inch wide seats. The A321ceo will seat up to 220, and the A320neo up to 180 people.

Image: Airbus.

ANA aircraft slide show: