North America

ANA - North America

Inspiration of JAPAN

Press Release
FY09 Emergency Income Recovery Plan
- achieve corporate goals for current fiscal year despite unfavourable conditions -
- improve income by ¥30 billion -

TOKYO July 31, 2009 - ANA has drawn up an Emergency Income Recovery Plan aimed at securing an additional ¥30 billion in revenue by the end of fiscal 2009 (ended March 31, 2010) and keeping ANA on track to achieve its performance goals for the year.

This will go hand in hand with measures currently underway to cut ¥73 billion off costs, which were outlined in the FY2009 Corporate Plan announced on April 30 this year.

Although some small signs of recovery in the Japanese economy are now evident, a full comeback remains elusive, on top of which H1N1 influenza has further suppressed demand for passenger travel since the end of April. Against this backdrop, the Emergency Income Recovery Plan contains new initiatives and calls for the fine-tuning of existing initiatives to swiftly secure the needed income improvements.

Measures and Expected Income

Measures in Detail

1 Refine demand-supply matching through revisions to the network plan
Domestic and international passenger numbers came under enormous pressure in the first quarter of FY2009. Given that operating environment, ANA will suspend or reduce service where necessary, and change aircraft type to better match demand until immediately before departure, in order to improve passenger load factors. In the current fiscal year, ANA will also start service between Tokyo Haneda and Beijing Capital, and open its new cargo hub in Okinawa.

Details of changes to the network plan follow below and are given on a return flight basis.

International (subject to approval by the relevant bodies)


- Postpone the introduction of a large freighter in view of demand trends (originally scheduled for FY2009)
- Operate flights with greater flexibility given the relaxation of the ‘use it or lose it’ rule for take off and landing slots.

2 Additional reductions in personnel and other costs
Expand unpaid leave
Unpaid leave, currently only available to certain departments and companies in ANA Group, will be rolled out across the entire Group to allow greater flexibility in the size and scope of ANA’s operation, in line with the operating environment. Passenger Services and Ground Handling will be in the first wave of expansion.

Other cost control measures (non-personnel related)
Costs related to sales, third party contracts and outsourcing costs will be reduced, in addition to the ¥73 billion emergency cost control programme already undertaken this year.

3 Reduce general procurement costs
General procurement costs, identified at approximately ¥220 billion per annum will be systematically reduced. This is a continued commitment that will go beyond FY2009, aimed at trimming annual costs in increments of ¥10 billion, and forms part of ANA’s mid-term corporate policy.

4 Introduce “Pay for Value” services
In order to improve customer satisfaction and keep pace with diversifying customer needs, ANA will review its current international and domestic service offerings and introduce a new service concept that provides value at an affordable price, based on actual feedback from customers.

ANA will offer for sale in domestic and international Economy Class certain items and services that were previously only available to domestic passengers in Premium Class, and to international passengers in Business Class. Services popular with ANA Mileage Club (AMC) Premium members will also be offered on a paid-for basis to a wider customer base, and brand new services created to cater to evolving customer needs and offer more choice will be introduced.

The selection of new paid-for services from October this year will include:

- Premium Class meals to domestic Economy Class passengers
- Business Class meals and drinks to international Economy Class passengers
- Access to domestic and international lounges for more customers
- ‘Onigiri’ rice-balls and/ or miso soup in domestic and international Economy Class (offered since July 1, 2009)

These are in addition to the complimentary items offered as part of the normal service in each class of travel.
Services that are gradually being rendered redundant by changing customer tastes and developments in information technology will gradually be replaced or removed, commencing with suspension of toll free calls for domestic and international reservations. The provision of newspapers in domestic and international Economy Class will also be stopped.

Contact Rob Henderson, ANA Public Relations:
FY09 Emergency Income Recovery Plan