Passenger Operations ANA is restructuring its network, as outlined in the network plan announced on January 28 this year, including a redistribution of capacity on both international and domestic routes. Domestically, it is cutting non-profitable routes and reducing capacity to increase efficiency where necessary, flexibly matching aircraft size with demand, making better use of seasonal operations and aircraft with low utilisation rates to match changes in demand, introducing more flexible timetabling, introducing a variety of fare types to spur leisure demand and improve the yield on business travel. On international routes, ANA is more finely balancing aircraft size with demand, including down-gauging where necessary to increase efficiency - such as introducing 777 aircraft on all intercontinental routes (Paris and Frankfurt routes are the only routes operated using 747-400 aircraft) - and introducing a more flexible fare structure to stimulate demand. Cargo Operations As for cargo, supply adjustments have been made to reflect slowing demand, and the company will speed up the creation of a sales network for its express delivery service using synergies with Overseas Courier Service, and maximise other partnerships to increase revenues. The Okinawa cargo hub will also go into operation as planned, however growth of the cargo business, in the initial stages, will be slower than originally envisaged. Revenue management and IT functions will also be stregthened. |