Tag Archives: Peach Aviation

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.

Peach to launch Tokyo (Haneda) – Taipei (Taoyuan) service

Peach Aviation (Osaka-Kansai) has announced it will launch a new route connecting Tokyo (Haneda) and Taipei (Taoyuan) starting on August 8.

Read the full report from our partner ZipanguFlyer: CLICK HERE

Peach logo

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A320-214 JA807P (msn 5440) arrives in Tokyo at Narita International Airport (NRT).

Peach route map:

Peach 6.2015 Route Map

Peach aircraft slide show: AG Airline Slide Show

 

 

 

AG Aviation friend

 

Peach Aviation orders three Airbus A320s

Peach A320-200 F-WWIQ (JA801P)(11)(Tko) TLS (Airbus)(46)

Peach Aviation (Osaka-Kansai), Japan’s Low Cost Carrier (LCC), has signed a firm contract with Airbus for the purchase of three A320s. A signing ceremony was held today at the Paris Air Show, with presence of Peach Aviation President Shinichi Inoue and Airbus Chief Operating Officer-Customers, John Leahy.

This is Peach’s first direct order from Airbus. Peach Aviation currently operates 14 leased A320s, with three more to be delivered on lease. Peach Aviation’s A320 seats 180 passengers in a single-class layout and will be powered by CFM International engines.

To date, the A320 Family has won more than 11,700 orders and over 6,500 aircraft delivered to more than 300 operators worldwide.

Photo: Airbus. The pictured Airbus A320-214 F-WWIQ (msn 4887) became JA801P on delivery.

Peach Aviation aircraft slide show: AG Airline Slide Show

Peach to add a Sendai hub in the summer of 2017

Peach Aviation (Osaka-Kansai) is planning to add a fourth hub at Sendai for the summer of 2017 according to ZipanguFlyer. Sendai is located in the northeast section of Japan. Peach currently serves Sendai with a single route from its Osaka (Kansai) hub.

The Sendai Airport was involved in the devastating March 11, 2011 Tōhoku earthquake and then was subsequently flooded by the tsunami that hit the coast of Japan in this area.

The rising waters flooded the tarmac, taxiways and runway of the airport. The flood waters actually reached parts of the second floor of the passenger terminal.

Read the full story: CLICK HERE

Copyright Photo: Manuel Negrerie/AirlinersGallery.com. Airbus A320-214 JA805P (msn 5304) with Mariko Sinoda on the fuselage arrives in Taipei.

Peach aircraft slide show: AG Airline Slide Show

Route Map:

Peach 3.2015 Route Map

Peach to build a third hub at Tokyo Narita

Peach Aviation (Osaka-Kansai) has designated Tokyo (Narita) as its third hub after Osaka (Kansai) and Okinawa (Naha) according to ZipanguFlyer. The carrier will launch two new routes from Narita to Fukuoka and Sapporo (New Chitose) on March 29.

Peach expands in Tokyo Narita

Read the full report: CLICK HERE

Copyright Photo: Gerd Beilfuss/AirlinersGallery.com. Airbus A320-214 JA810P (msn 5724) was delivered new on August 5, 2013.

Route Map:

Peach 2.2015 Route Map

Peach aircraft slide show: AG Airline Slide Show

AG Each photo carefully selected

Peach to add the Okinawa-Hong Kong route on February 21, 2015

Peach Aviation (Osaka-Kansai) has announced it will launch the Okinawa-Hong kong route on February 21 with four weekly flights.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A320-214 JA807P (msn 5440) completes its final approach to the runway at Tokyo’s Narita International Airport.

Peach aircraft slide show:

Peach Route Route Map:

Peach 11.2014 Route Map

Peach cancels at least 448 flights this summer due to a pilot shortage

Peach Aviation (Osaka-Kansai) has announced it may cancel up to 2,088 flights between May 19 and October 25 due to a pilot shortage. 448 flights scheduled for May and June have been confirmed as cancelled.

The airlines issued this statement:

Peach

Peach Aviation Limited Representative Director and CEO Shinichi Inoue on April 24 announced amendments to its Summer 2014 flight schedule, due to an unavoidable shortage of flight crew personnel, which will affect flights from May 19, resulting in cancellations of some flights. It is with extreme regret that these amendments must be made. However, in order to maintain efficient and safe operations for our customers, Peach has decided to take these precautionary measures.

Since the launch of its first flight in March 2012, Peach, the first Japanese LCC, has maintained a flight cancellation rate of 0.96%, a remarkably low number among LCC carriers. However, the increasingly competitive environment has created a sudden rise in demand for flight crew throughout the industry, leading to a shortage in personnel. In addition, there has been an unexpected number of absentees for health reasons among Peach’s flight crew. Therefore, after careful reevaluation, it has been necessary to decrease the number of flights in order to maintain safety and customer satisfaction. Peach is making every effort to find alternative arrangements for our customers.

Up to 2,088 flights between May 19 and October 25, 2014 may be affected by these amendments. 448 flights scheduled for May and June have been confirmed as cancelled. Any further changes to the flight schedule from July onwards will be announced on April 30. Customers who have already purchased tickets for these flights will be contacted via e-mail.

Customers who would like to change their flights to a different Peach flight will be able to do so free of charge. In the event that a new flight is unavailable, or if the affected customer is unable to travel during the desired period, the airfare will be refunded. Customers will be informed of the necessary procedures and details by email, via the e-mail address they registered upon initial purchase. Peach has also established a designated hotline for customers with further questions regarding the amended flight services.

To ensure safe and efficient operations, Peach will embark upon an even more proactive hiring strategy for flight crew to alleviate the current situation and to assure customer satisfaction. Peach aims to maintain the operational standard seen in the latter part of 2013 (operating with 11 aircraft), in order to maintain the quality of service we have been providing to our customers since our inauguration in 2012.

We sincerely apologize for any inconvenience this will cause to all affected customers.

 

Currently the new airline currently employs 108 cockpit crews, consisting of 52 Captains and 56 First Officers (Copilot) according to Zipanguflyer.

Copyright Photo: Manuel Negrerie/AirlinersGallery.com. Airbus A320-214 JA809P (msn 5640) in the special “Girl’s Award-Rune-Roots of Kawaii” livery, arrives at Taipei (Taoyuan).

Peach: AG Slide Show

Current Peach route map:

Peach 4:2014 Route Map

 

 

Peach Aviation announces four new routes

Peach Aviation (Osaka-Kansai) has announced the following new routes:

Osaka (Kansai) – Sendai (starting on April 12, 2013)

Osaka (Kansai) – Ishigaki (New Ishigaki) (June 14, 2013)

Okinawa (Naha) – Ishigaki (New Ishigaki) (September 13, 2013)

Osaka (Kansai) – Busan (September 2013 – tentative)

Top Copyright Photo: Olivier Gregoire. Airbus A320-214 F-WWDJ (JA804P) (msn 5166) completes its final approach back at Toulouse after a test flight.

Bottom Copyright Photo: Peach.

Peach A320-200 (11)(Tails)(Peach)(LR)

Route Map:

Please click on the map for the full size view.

Please click on the map for the full size view.