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Press Release
ANA Unveils More Details of Emergency Plan for FY 2009
- single biggest annual cost cutting initiative in the airline’s history -

TOKYO April 30, 2009 - ANA today released more details of its FY 2009 Emergency Plan, which has been in place since the start of the present fiscal year, April 1, and runs to March 31, 2010. The plan is ANA’s map for navigating the global recession and outlines how the company will prepare for the opportunities presented by the expansion of airport capacity in the Tokyo metropolitan area in FY2010.

For the present fiscal year, ANA will concentrate its efforts on the following three areas: restructuring its operations, mainly centered on an overhaul of its network; limiting all but strategically necessary investment; and implementing its most ambitious cost-saving initiative in the history of the airline, to the tune of $743.1 million (¥73 billion).

At the same time, as a matter of course, ANA will maintain its emphasis on operational and service quality, continue to improve the attractiveness of its brand, pay greater attention and respond more flexibly to market movements, create demand where possible and maximise revenues from it.

Network
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
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.

Cost Reduction
ANA will endeavour to secure 73 billion yen in cost-savings in FY 2009 in the following areas:

Fuel - through network changes and fuel-saving programme $488.6 million (¥48 billion)
Airport Charges - through network efficiency gains and reduction in landing charges $71.3 million (¥7 billion)
Personnel costs $61.1 million (¥6 billion)
Sales related costs $122.2 million (¥12 billion)

Curbing Investment
Investment for the fiscal years 2008 and 2009 will be reduced by $1,211.4 million (¥119 billion), and non-vital investment postponed, in line with restructured operations. This does not apply to the renewal of the fleet using more fuel-efficient aircraft and investment in ANA’s ‘New Value Project’, which is aimed at finding more innovative ways of working to secure greater productivity and efficiency gains. These two elements will take precedence over others.

Outlook for FY 2009

unit: million USD rounded to nearest (billion yen rounded down)
  FY2009 Change
Revenue 13,743.3 (1,350.0) -432.7 (-42.5)
Air Transportation Segment 12,216.2 (1,200.0) -300.3 (-29.5)
Operating Profit 356.3 (35.0) +278.9 (+27.4)
Air Transportation Segment 330.8 (32.5) +281.9 (+27.7)
Recurring Profit 50.9 (5.0) +49.9 (+4.9)
Net Profit 30.5 (3.0) -73.3 (+7.2)
Assumptions: Dubai crude: USD 50/ bbl; Singapore Kerosene: USD 63/ bbl; exchange rate: USD 1=JPY 95
 
Contact Rob Henderson, ANA Public Relations: r.henderson@ana.co.jp

– ¥98.23 = $1
 
ANA Unveils More Details of Emergency Plan for FY 2009