ANA Group held its regular president’s press conference on July 7. The speakers were Koji Shibata, President and Representative Director of ANA Holdings, Shinichi Inoue, President and Representative Director of ANA, and Takeaki Mori, CEO and Representative Director of Peach (Peach Aviation).
Mr. Shibata began his report by saying, “We will continue to monitor the daily infection situation closely and take firm infection control measures to welcome our customers. We hope that our customers will feel safe during their summer vacation,” he said, and reported on the recent situation of the group. Despite the Corona disaster, the group is performing well and is expected to exceed the assumptions of its annual profit plan, achieving profitability in July and ensuring profitability for the current fiscal year.
Looking at this by business segment along with demand trends in aviation, the domestic passenger business has been performing almost in line with the plan in the first quarter, with passenger volume recovering to 90% of the pre-Corona level in July and August, together with ANA and Peach. During the three-day weekend of July 16-18, which falls on Marine Day, the number of passengers recovered to the same level as before Corona. In addition, the large Boeing 777 aircraft, which had been out of service for some time, has completed engine upgrades and resumed operations in sequence. In addition, if the “tourism demand stimulus measures” currently under consideration by the government are implemented, a further upswing is expected.
Similarly, the international passenger business exceeded the plan in the first quarter and is expected to do so again in July and August. However, many overseas travelers have expressed that they would like to visit Japan, but that visa acquisition is complicated, and that they would like to travel as individuals rather than in group tours.
The ANA Group has 11 dedicated cargo planes, which is one of its strengths, and these 11 planes are currently in full operation. This includes one large Boeing 777F, which is used to transport automobiles and other large cargo that cannot be carried by regular passenger planes, and the company expects the cargo business to remain strong throughout the current fiscal year.
The airline is currently preparing to launch flights in the second half of FY2023, and hopes to have specific details on services and other details by the end of FY2022.
In the non-aeronautical business, the company plans to release the “ANA Super App” in FY2022, with the aim of realizing a world where people can live on miles. Despite the predicament of the Corona disaster, Mr. Shibata is full of hope that “what has been sown and nurtured is finally about to sprout,” and he also expressed his “high expectations” for other services to be developed in the future.
He continued, “I believe that it is thanks to the support we have received from many people that we are able to talk about such a positive story. He reiterated his gratitude to financial institutions, shareholders, airport buildings and other related facilities, aircraft and engine manufacturers and other suppliers, and the Japanese government for their tangible and intangible support.
The approximately 42,000 employees of the ANA Group are also working in a difficult environment, and the approximately 700 employees currently on loan out from outside the Group will gradually return to their workplaces as the scale of operations recovers and expands. In response to this, he said, “We will celebrate the 70th anniversary of our founding in 2022, and we will continue to provide customer-oriented services for the next 80, 90, and 100 years without forgetting our sense of gratitude.
ANA President and Representative Director Shinichi Inoue said, “Thanks to your support, the ANA-branded airline business is performing well, and customer demand is returning,” and while it is necessary to continue to pay close attention to the infection situation, he shared an episode at the airport where he felt “the mode has changed. Recently, he said, “We have been hearing many comments from customers, such as ‘I have been waiting for you,’ ‘I can finally travel,’ and ‘I can go back to my hometown,’ and there has been a noticeable increase in the number of comments with bright eyes.
As the number of infected people has repeatedly increased and decreased, it seems to be a movement that the users themselves are learning and taking measures before traveling,” he said. The number of infected people has been increasing and decreasing repeatedly.
He added, “We will soon be entering the summer vacation season, and we hope that our customers will enjoy their “usual summer” for the first time in three years, while taking extra precautions against infection. In response, ANA will have five aircraft on domestic flights during the three-day weekend from July 16 to 18, eight aircraft during the Bon Festival in August, and a total of 15 aircraft by the end of October. More than 200 extra flights are scheduled to be operated in July.
The company is also currently accepting applications for its “Children 1000 Campaign” and other special offers. This is aimed at families who have been holding off on traveling because of the Corona disaster, especially because “two years for children seems to have been a much more precious and necessary time for them than it is for adults. For example, there were no pictures of the school trip in their graduation albums, or they did not feel the fervor of youth because of the limited number of club competitions. There are many such children, and we thought this should not be taken lightly, so we planned this campaign to help them create memories,” he said, expressing his thoughts on children who use ANA.
Mr. Inoue also said, “I have always believed, even before the Corona disaster, that tourism is a pillar of the national growth strategy and a trump card for regional development, and I remain convinced that this is true. We will continue to do our best to revitalize local economies and the tourism industry,” he said enthusiastically. On international routes, routes are gradually recovering, with 41 routes scheduled to be in operation in July (equivalent to a recovery of more than 30% of the number of flights in operation in the 2020 business plan). As for passenger trends, Japan’s immigration restrictions are being eased in stages, and foreign travelers are beginning to be accepted, which is leading to an increase in “trilateral” flows from Southeast Asia to the United States via Japan.
Noting the return of the super-sized Airbus A380 “FLYING HONU” to the Honolulu route on July 1 for the first time in two years and three months, he said, “Just as our customers have been sincerely looking forward to traveling to Hawaii, our group has been waiting for this opportunity with the same feeling. He expressed his joy, saying, “I realized how grateful we are to get back to our daily routines.
In addition, the new service model “ANA Smart Travel” was introduced. This was introduced in response to the changing needs of passengers with the Corona disaster and many requests for non-face-to-face and contactless facilities. Based on the concept of “smartphones making travel more hospitable,” the system allows passengers to make reservations, purchases, and check-in procedures from the beginning to the end of their trip with a single smartphone. The “Waiting List” function, newly added on June 22, allows passengers to apply for seats from their smartphones or tablets without having to go to the airport as before. Together with the introduction of online check-in for domestic flights, ANA is making it more convenient to use ANA’s aircraft.
In closing, Peach CEO Takeaki Mori, who marked the 10th anniversary of the launch of Peach’s first flight in March 2012, once again expressed his gratitude, saying, “Peach has welcomed more than 40 million customers to date, and we have had many customers during the two years of the Corona disaster, even though it was a very difficult time.
Peach’s mission within the ANA Group is to sharpen the Peach character, to attract new customers, and to encourage those who fly only a few times a year to fly again and again. We are committed to establishing LCCs in Japan. Our mission has been to establish LCCs in Japan and to expand the aviation market itself. In the case of the Corona Disaster, we have developed a series of new projects such as the “Travel Lottery” and the “Unlimited Ride Pass”. Although this is a difficult time for us, we believe that this is an effort to improve the recognition of Peach and to “plant the seeds” for future growth. We hope to see beautiful flowers bloom this summer.
In addition, new reservations have been growing rapidly since early spring, and reservations for this summer are also growing faster than before the Corona disaster. 178 daily flights are planned for August, the largest number ever for Peach, and in addition, Peach recently began selling tickets for the winter season starting at the end of October, and has received more reservations than expected. Regarding this, he said, “Accumulated travel demand is now becoming apparent all at once. We feel the underlying strength of the company,” he said.
Peach currently offers “Summer Discount for Everyone,” in which discount rates increase when three or more people make a reservation, and “0-night Bullet Fare,” which allows one-day domestic travel at a special price, both of which have been well received. On international routes, the Kansai – Incheon (Seoul) route, which had been suspended due to the Corona disaster, is scheduled to resume service on August 28. This is Peach’s first international flight in about one year and four months, and “This is Peach’s first international flight since it started service in 2015, so it is very emotional for us. We will go back to the basics and operate the flight with all our heart and soul. In addition, Peach plans to resume flights to and from Hong Kong, Taiwan, China, and other regional destinations by the end of the year as soon as the environment is ready.
© Source travel watch
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