ANA
Group, Japan’s largest airline group, today sets out its corporate
strategy for FY2013-15. Despite the challenging global economic
backdrop, ANA Group has a clear strategic plan to position the
Company for growth. The strategic plan focuses on the following
elements:
· Build upon the company’s new corporate structure and enhanced management team
· Pursue a multi-brand approach; expanding the portfolio to include ancillary airline services
· Target expansion in high growth markets, including Asia
· Continue to differentiate ANA Group as the Leading Global Airline Group
Market conditions
Due to Airline liberalization and deregulation, which has opened up markets in the airline industry, we are seeing intense competition, not only from existing Japanese airlines, but also from major airlines from Asia, Europe, US and Middle East, and from the full-scale entry of low-cost carriers to the market. We anticipate that this trend will continue as liberalization and deregulation continue at a rapid pace. In addition to this, slot expansion in Tokyo and increasing competition from other modes of transportation, such as the extension of the Shinkansen bullet trains, have intensified competition further.
ANA Group Strategy
2012-2013
In response to these challenges, and as the company entered its 60th anniversary year, ANA Group has already undertaken a number of reforms, as set out in the ANA Group Corporate Strategy for FY2012-13. These include management reforms, the establishment of a multi-brand strategy to expand the portfolio to include ancillary airline services, and changes to the Group’s corporate structure to strengthen cost competitiveness and the Group’s financial position.
2013-2015
Building on these changes, ANA Group’s FY2013-15 Corporate Strategy is designed to position the Group as a best in class airline operator, leading the Japanese market. The strategy includes capitalizing on the new corporate structure and continuing to strengthen the management team. In addition, ANA is pursuing growth by capitalizing on the expansion of airport slots in the Tokyo area and seeking profit diversification through expansion into new business areas which demand our specialist expertise and strategic investment in Asia.
Expansion
of Growth Areas· Build upon the company’s new corporate structure and enhanced management team
· Pursue a multi-brand approach; expanding the portfolio to include ancillary airline services
· Target expansion in high growth markets, including Asia
· Continue to differentiate ANA Group as the Leading Global Airline Group
Market conditions
Due to Airline liberalization and deregulation, which has opened up markets in the airline industry, we are seeing intense competition, not only from existing Japanese airlines, but also from major airlines from Asia, Europe, US and Middle East, and from the full-scale entry of low-cost carriers to the market. We anticipate that this trend will continue as liberalization and deregulation continue at a rapid pace. In addition to this, slot expansion in Tokyo and increasing competition from other modes of transportation, such as the extension of the Shinkansen bullet trains, have intensified competition further.
ANA Group Strategy
2012-2013
In response to these challenges, and as the company entered its 60th anniversary year, ANA Group has already undertaken a number of reforms, as set out in the ANA Group Corporate Strategy for FY2012-13. These include management reforms, the establishment of a multi-brand strategy to expand the portfolio to include ancillary airline services, and changes to the Group’s corporate structure to strengthen cost competitiveness and the Group’s financial position.
2013-2015
Building on these changes, ANA Group’s FY2013-15 Corporate Strategy is designed to position the Group as a best in class airline operator, leading the Japanese market. The strategy includes capitalizing on the new corporate structure and continuing to strengthen the management team. In addition, ANA is pursuing growth by capitalizing on the expansion of airport slots in the Tokyo area and seeking profit diversification through expansion into new business areas which demand our specialist expertise and strategic investment in Asia.
Alongside ANA Group’s core portfolio, the Company will pursue revenue growth through a multi-brand strategy; expanding into ancillary airline services, and by strengthening its operations in both international and domestic markets. In particular, the Group is looking to capture growth in the Asian market and increase its exposure to non-airline operations, including cargo.
(1) International passenger business
With slot expansion in Tokyo, ANA will expand its network for international routes departing/arriving from the Tokyo area. It will also incorporate non-Japanese demand traveling both into and through Japan in addition to existing Japan-based business demand.
(2) Domestic passenger business
ANA will continue to differentiate its products & services on its domestic flights in order to ensure the strength of its core business.
(3) Low-cost sector
ANA Group will continue to develop a profitable, low-cost business model for its LCC business, by improving the level of brand recognition, capturing Asian market demand, and pursuing a low-cost operating model.
(4) Cargo
ANA aims to drive profitability in its cargo business through a series of measures. It will improve aircraft utilization rates to reduce costs, expand its cargo network by increasing the number of freighters, and carry more freight on ANA’s passenger aircraft and flights made by other carriers.
ANA will also introduce a business management system to develop business solution for the cargo business.
(5) Diversifying into Ancillary Airline Service
ANA plans to diversify into other aviation related businesses, in particular in the growth areas of Asia, as well as looking for opportunities for the ANA brand in the airline sector.
Strategic Investment・ Use funds obtained through 2012 public stock offering to invest overseas, to make strategic investments abroad, in particular in Asia, where high economic growth is anticipated.
Consider plans to establish an investment management company in Singapore, in June, to accelerate implementation of investment.・ Invest in Asia to capture growth in that region, with additional synergy benefits to ANA Group‘s airline business.・ Diversify into other aviation related businesses, such as aircraft maintenance, utilizing the company’s experience, knowledge, resource and brand value, to expand new profit areas.
Strengthening the Management Base
Building on progress from the FY2012-2013 corporate strategy, ANA Group will continue to:
(1) Reform Group Corporate Structure
ANA Group will move to a Holding Company structure from this fiscal year in order to achieve the separation of management and execution, fair and equitable group management, and delegation of authority and responsibility to individual group companies.
Consolidation of shared back office functions will take place in order to improve efficiency, and some activities may be outsourced.
(2) Reform Cost Structure
The company is in line to reduce costs by 100 billion yen by fiscal year 2014 (ca. unit cost 1.0 yen). ANA Group also plans to review its pension program and the mid-to-long-term cost impact.
ANA Group Goals
Following the creation of the holding company and its 60th anniversary last year, ANA Group will benefit from the strategic oversight provided by the strengthened management team. ANA Group has formulated a new group mission statement, management vision, policy on corporate social responsibility, and group action guideline - The ANA’s Way.
(1) New Group Mission Statement
The ANA Group Mission Statement represents the corporate group’s long-term goals, mission, and purpose. Security and trust are the basic defining responsibilities across the Group. Through these values ANA Group will differentiate itself as the Leading Global Airline Group.
(2) New Group Corporate Vision
The ANA Group Corporate Vision represents our long terms goals and our ambition to become an important corporate player in the air transport business, leading the market in terms of customer satisfaction and value creation.
(3) Group CSR Policy and Group Code of Conduct (ANA's Way)
The Group CSR policy sets forth ANA’s social responsibility to achieve a mission and vision which represent our promise to society as a corporate group. We have already been working on CSR centered on safety but we will shift to a more global level looking at wider range of stakes holder globally. The Group Action Guideline (ANA's Way) forms the cornerstone of actions that ANA Group employees should take to achieve the vision and principles.
