Future Challenges of Open Skies Agreements JITI Aviation Seminar October 9 th, 2015
2 ANA Business Overview Boeing 787 TTL 32 Boeing 777 TTL 54Boeing 767 TTL 55 Airbus A320 TTL 18 Boeing 737 TTL 59 Bombardier DHC8 TTL 21 Including 6 aircraft operated by Vanilla Air (all leased aircraft) *As of Mar 31, consolidated subsidiaries and 18 equity-method subsidiaries and affiliates * Operating revenue JPY 1,713 Billion * Operating income JPY Billion * Net income JPY Billion * Number of employees 34,919 * *As of March 31, 2015 Number of aircraft: 242 Awarded SKYTRAX exclusive 5 star rating for the third year running ( ) The world’s Best Airport Services The world’s Best Transpacific Airline 15 th largest airline in the world by total passengers ** **IATA World Air Transport Statistics, 2014 ANA Business “STAGGERED” Boeing TTL 3
ANA Today 9/11 SARS Lehman shock Earth quake foundation International flight started Star alliance membership 60 bil ASK 49 bil ASK 50 mil Pax As of March 2015 (mil ASK) 3
4 ANA International Network China Beijing Dalian Shenyang Qingdao Chengdu Shanghai Hangzhou Guangzhou Xiamen China Beijing Dalian Shenyang Qingdao Chengdu Shanghai Hangzhou Guangzhou Xiamen Rest of Asia Seoul Taipei Hong Kong Yangon Ho Chi Minh Manila Bangkok Singapore Jakarta Delhi Mumbai Hanoi Kuala Lumpur Rest of Asia Seoul Taipei Hong Kong Yangon Ho Chi Minh Manila Bangkok Singapore Jakarta Delhi Mumbai Hanoi Kuala Lumpur North America New York Washington DC Chicago Los Angeles San Francisco San Jose Seattle Honolulu Vancouver Houston North America New York Washington DC Chicago Los Angeles San Francisco San Jose Seattle Honolulu Vancouver Houston ANA Network Europe London Paris Frankfurt Munich Dusseldorf Europe London Paris Frankfurt Munich Dusseldorf *As of Sept., 2015 ●ANA operates 952/w regular international passenger flight on 56 routes ●In winter 2015, ANA will add Brussels and Sydney (58 routes in total)
ANA and Alliance Partners As of April 2015 ●ANA’s flights are marketed by 23 partners (15 from Star alliance) ●ANA markets flights of 26 partners (18 from Star alliance) 5
US-Japan Openskies & Trans-Pacific Market ●Japan-US Openskies enabled metal neutral JVs by JPN & US airlines ●Passengers will enjoy choice out of three global alliances NH=UA JV JL=AA JV DL’s on-line services JL AA UA NH DL Asia Americas Competition among global alliances 6
●Open market/de-regulation oriented ●Entry barrier removed ●Pro-competitive/efficient management Open Skies Policy Openskies increases users’ benefits through competition ●Protectionist/regulation oriented ●Government dependent/spoiled management Openskies Set Back of Openskies 7
Level Playing Field is essential for fair competition Subsidy justification: ●MEIP (Market Economy Investor Principle) Subsidy may be justified (case by case): ●Sustainable services for remote area ●Turn-around program for airlines in difficulty under open rules ●Fostering infant industry in developing countries Level Playing Field and Subsidy Increased users’ benefit through fair competition 8
State Owned airlines Fair competition among private and state owned airlines Agenda for State Owned airlines ●Proper disclosure/transparency ●Privatization ●Independent from government influences ●Market oriented/efficient management 9
Thanks.