ANA targets 50% expansion of international business

All Nippon Airways (ANA) has unveiled an ambitious new 10-year strategy through which it aims to increase its international passenger traffic and revenues by 50%.

Taking advantage of the 2020 Tokyo Olympics and the Japanese government’s efforts to achieve 20 million international tourism arrivals by the end of the decade, ANA has developed a new long-term strategy designed to make the airline “Japan’s bridge to the world”.

ANA has ordered more Boeing 787 Dreamliners
ANA has ordered more Boeing 787 Dreamliners

Through this strategy, ANA is targeting a 50% increase in international revenues by 2025, to JPY2.5 trillion (approximately US$21 billion), and an operating profit of JPY200bn.

By this time, the airline’s international revenues are expected to have overtaken its domestic turnover.

Key areas of expansion for ANA include North America, Southeast Asia, China, South Korea, Taiwan and, to a lesser extent, Western Europe. Areas under future consideration include Oceania, Latin American, the Middle East & Africa and Eastern Europe.

And this growth will be driven by an expanding fleet of aircraft. In March 2014, ANA ordered 70 new aircraft and today it has announced deals for a further 15 new jets, including three Boeing 787-10 Dreamliners, five B737-800s and seven Airbus A321s.

The new B787-10s mark ANA’s first ever deal for the largest version of the Dreamliner series, and will add to the airline’s previously-ordered fleet of 36 B787-8s and 44 B787-9s. Deliveries of the B787-10s are expected to commence in 2019 or 2020.

By the end of 2020, ANA expects to have a total fleet of 305 aircraft – 265 operated by the airline’s mainline carrier and 40 by its low-cost subsidiaries.

ANA will also aim to “exploit Tokyo’s position as a connecting hub between Asia and North America” to boost trans-Pacific traffic, and strengthen its “dual-hub airport strategy” at the Japanese capital’s Narita and Haneda airports.

ANA posted a net profit of JPY18.8bn in the 2013-14 financial year and expects this to increase to JPY35m this year.

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