FACTS AND FIGURES 1. OPERATIONAL STATISTICS a. Available Seat Kilometers (ANA operated flights)
b. Fleet Planning ANA plans to introduce one B777-300 and three A321 aircraft on domestic routes, in addition to one B777-200 on international routes. In total, 5 new aircraft will be added to the current fleet (as outlined in the Corporate Restructuring Plan), while 6 aircraft will be retired (two more than originally planned). At the end of fiscal 2000, ANA will have a total 141 aircraft, 1 less than at the end of fiscal 1999. 2. INTERNATIONAL a. TOKYO-NARITA ROUTES
b. OSAKA-KANSAI ROUTES
c. OTHERS ANA plans to suspend service on its Moscow-Rome and Fukuoka-Shanghai routes from 1999 summer schedule. Both flights originate from Kansai. 3. DOMESTIC
ANA will re-evaluate aircraft size on domestic routes and will transfer seven routes to its subsidiary, Air Nippon (ANK), as a part of operational down-sizing to strengthen ANA Group profits. 4. ALLIANCES
ANA will be the marketing carrier for all code-share flights listed above. ANA's Medium-Term Outlook to Fiscal 2001 Amidst an increasingly challenging operating environment, ANA recognizes the need to deepen and accelerate its restructuring efforts and overhaul its revenue-cost structure. ANA's 1999 Business Plan is a part of the following Medium-Term Outlook: Route Network Focussing on maximizing profitability of the ANA Group, ANA will reorganize its route network and adjust aircraft size to better fit passenger demand in both domestic and international markets. Domestic Routes ANA will increase profitability in domestic services by reorganizing its domestic route network to revolve around Haneda airport, shifting slots and suspending unprofitable routes. The company will also re-evaluate aircraft size and seasonal changes in frequency to better reflect fluctuations in market demand. In concrete terms, ANA will shift to smaller aircraft on local routes to reduce operating costs. Over a period of three years (Fiscal 1999-Fiscal 2001), a total of 20 local routes _ mostly from Kansai and Fukuoka - will be transferred, in stages, to ANA's subsidiary, Air Nippon (ANK). International Routes ANA's medium-term outlook for international services is to suspend or change the type of operations on less profitable routes while utilizing strategic alliances to expand its network and attract greater revenues. The company's primary focus will be on building a network revolving around high-revenue "business" routes. Over the three year period, aircraft will be shifted from Kansai to Narita, and frequency will be increased on selected high-volume routes from Narita. To reflect current market demand, medium sized aircraft will be introduced on Kansai routes, supporting a Kansai route network concentrating on mid-distance destinations. Strategic alliances, notably Star Alliance which ANA will join later in 1999, will help boost revenues by attracting customers through an expanded route network and benefits such as joint FFP (frequent flyer programs) and common use of lounges. Fleet Planning By reducing investment in aircraft and deferring aircraft firm orders, ANA projects savings of 100 billion yen over the three year period until the end of fiscal 2001. |