Tokyo (ots) - The ANA Group, consisting of ANA (All Nippon
Airways), Air Nippon (ANK), Air Nippon Network (A-Net) and Air Japan,
today announced its Mid-term Corporate Plan for the three year period
commencing April 1, 2004 through March 31, 2007.
The next three fiscal years will see the Group further pushing
forward with measures implemented under the previous Mid-term
Corporate Plan (FY 1999-2002), and with those introduced in response
to changes in the operating environment brought about by unforeseen
events such as the September 2001 terrorist attacks in the United
States, and the outbreak of SARS. These measures include the
continued rationalisation of the ANA fleet and network, and the
continued implementation of the previously announced Three Year Cost
Reduction Plan for FY2003-2005, which aims to shave 30 billion yen
The new Mid-term Corporate Plan is set against the background of a
still sluggish Japanese economy and increasingly fierce competition
within the domestic transportation sector. However, in spite of this
and the very negative impact of SARS and the Iraq war at the start of
the present financial year, the ANA Group intends to make its first
dividend payment in seven years at the end fiscal 2003. This is the
culmination of cost savings, principally in the area of personnel
costs, fare policy in the domestic sector and the swift return of
international passenger demand.
The first of the three years covered by the Mid-Term Strategy,
fiscal 2004, will see the increase of services between China and
Japan and the creation of short-haul Asian services at Central Japan
International Airport when it opens in February 2005, as part of the
Group's international strategy. Domestically, from April this year
ANA Group airlines will fly under a unified ANA brand, and in
December move to a new terminal at Haneda Airport, both measures
designed to improve passenger convenience. The corporate plan for
fiscal 2004 was announced on January 24.
With this new Mid-term Corporate Plan, the ANA Group intends to
build an increasingly solid base as it looks forward to the expansion
of Haneda Airport in 2009 and the new opportunities that increased
capacity and the start of international operations will bring.
In outline, the Plan is as follows:
The ANA Group aims to be Asia's top airline in terms of quality,
customer satisfaction and value creation.
Secure competitive advantage in terms of costs
a. Reform the cost structure and reduce costs by 30 billion yen
during the period of fiscal 2003 - 2005, thus establishing a firm,
profitable base from which the Group can respond rapidly to changes
in the operating environment, and maintain competitive advantage.
b. Minimize the financial risk from a potential economic downturn
or fall in demand by restructuring the fleet to one centred on
medium-sized and small aircraft deployed with greater frequency to
ensure flexibility. Large aircraft will continue to be deployed in
line with demand.
c. Reform personnel costs across the Group, in all areas of
operations, to levels that create a competitive edge.
d. Utilise the economies of scale, joint purchasing and bargaining
power of Star Alliance, in conjunction with our own marketing
strategy, eg, in the areas of fuel purchasing, e-ticketing and other
Star standardised products, to secure increased convenience and
Improve marketing and sales strength
Expand the Chinese network; increase the global network through
Star Alliance; remove the international/ domestic distinction in the
deployment of medium sized and small aircraft to facilitate the
development of domestic and short-haul Asian operations at Central
Japan International Airport; make short-haul international travel as
easy as domestic travel from the customer's point of view.
Secure greater passenger convenience and amenity by: uniting under
one brand; simplifying the schedule; increase propeller aircraft
operations; promoting internet bookings; improving connection times
between Star Alliance partner international flights and ANA domestic
Differentiate ANA from competitors
Stressing the key words 'Simple','Convenient' and 'Individual'
introduce new products and innovations that increase customer
satisfaction. In turn this will improve profitability, raise the ANA
brand value, and set ANA apart from its rivals.
3 Management Aim
By matching aircraft type with demand, improving profitability,
and reducing costs, the following consolidated ANA Group airline
results are forecast.
unit: 100 million yen i% denotes year-on-year comparisonj
2003 2004 2005 2006
Operating Profit 210 500 630 740
Recurring profit 140 270 500 610
ASK Domestic - 96% 101% 101%
ASK International - 102% 100% 101%
This information is provided by RNS
The company news service from the London Stock Exchange
ots Originaltext: All Nippon Airways Co Ld
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