ANA Holdings sets out new growth targets for FY2020

ANA Holdings unveiled (29-Jan-2016) new growth targets for the next five years as part of its FY2016-FY2020 Group Corporate Strategy. Details include:

• Increase both international passenger and cargo revenues by 40% and triple revenues from its LCC division;
• Grow international seating capacity by a half and expand the size of the group fleet to approximately 300, of which three-quarters will be fuel-efficient aircraft;
• • ANA aims to further develop its dual hub airport strategy in the Tokyo Metropolitan area by improving connectivity with "Tokyo Triple-bank" model;
  • Create three time zones per day, at Haneda with its focus on morning and late night and at Narita on evening, to enable easier and more convenient flight connections;
  • Further expand its international passenger network through more integrated JVs or seeking new partnership with other carriers; continuing to strengthen its existing routes; and expanding new services to "white spots" in Asia and Central and South America;
  • By the end of FY2020, ANA plans to achieve capacity growth of 51%;
  • Strengthen the share of the resort/leisure market through the introduction of three new A380 aircraft onto routes between Tokyo and Honolulu;
• Maintain domestic mainline revenues and seat capacity at current levels;
• • By maximising use of widebody aircraft in times of high demand and narrowbody aircraft in times of low demand;
  • Capture growing demand from inbound tourists to connect to domestic flights, especially from the Asian region where economic growth continues;
  • Improve the travel experience through the provision of new services including in-flight WiFi, free access to the latest news on real-time live TV, and the introduction of new seat products;
  • ANA HD is scheduled to take delivery of the first MRJ and to start operation principally on domestic local routes;
• Cargo business:
• • Further develop a logistic service that covers all of Asia, where growth is rapid, harnessing cargo freighters and infrastructure; the Okinawa Cargo Hub;
  • Achieve profitability in the air freighter business by FY2017 and become one of the world's top five carriers in terms of freight handled by FY2020;
  • By the end of FY 2020, ANA plans to achieve capacity (on a tons-kilo basis) of 138% compared to FY2015;
• Establish Vanilla Air as the number one LCC in the Tokyo Metropolitan area;
• • Grow its LCC business into a new core business by entering into the leisure market for flights out of Japan to new resort destinations not currently served by ANA; capturing further demand for inward travel with new routes serving continental China and Okinawa; and reducing costs and introducing efficient aircraft;
  • By the end of FY 020, Vanilla Air plans to achieve capacity (based on ASKs) of 318% compared to FY2015;
• Accelerate the expansion of other business areas;
• • In the pilot training business, ANA HD is steadily capturing the strong and growing demand for training services by strengthening alliances between its businesses in Japan, Asia and North America;
  • In the aircraft maintenance business, MRO Japan is aiming to make maximum use of the advantages of Okinawa in order to win business from both domestic and overseas airlines;
• Fleet strategy:
• • Aiming for net increase of around 40 aircraft to 300 aircraft by FY2020, comprising 275 for ANA and 25 for LCC;
  • Increase the proportion of modern, fuel-efficient aircraft in its fleet from 60% to 75%;
• Financial forecast:
• • FY2016:
  • • Operating revenue: JPY1830 billion;
    • Operating profit: JPY145.0 billion;
    • Operating profit margin: 7.9%;
    • ROE: 9.4%;
    • ROA: 6.5%;
  • FY2017:
  • • Operating revenue: JPY1930 billion;
    • Operating profit: JPY170.0 billion;
    • Operating profit margin: 8.8%;
    • ROE: 10.7%;
    • ROA: 7.4%;
  • FY2020:
  • • Operating revenue: JPY2160 billion;
    • Operating profit: JPY200.0 billion;
    • Operating profit margin: 9.3%;
    • ROE: 9.8%;
    • ROA: 7.6%. [more - original PR - English/Japanese]