Relax - ANA to boost international service by 22% in two years

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TOKYO - Japan's All Nippon Airways (ANA) on Friday said it would aim to boost its international capacity by 22 per cent within two years and begin fresh routes as part of a new business strategy.

The carrier, the first to fly Boeing's new 787 Dreamliner late last year, said the plan for fiscal 2012-2013 was "designed to strengthen ANA against a backdrop of global economic uncertainty, the ongoing sovereign debt crisis in the eurozone, high oil prices and fluctuating foreign exchange rates".

It also comes as it faces tough competition from a growing budget sector and days after an announcement by rival Japan Airlines (JAL) that it would buy more Dreamliners to build on its recovery from bankruptcy.

On Wednesday JAL said it would buy 10 new Dreamliners - to add to an existing order for 35 of the planes - as part of a five-year capital expenditure plan worth more than six billion dollars.

ANA said it will introduce new services linking Tokyo's Narita airport with Seattle and San Jose in the year from April 2012, using the fuel-efficient Dreamliner.

The airline said in a statement that it will adopt multi-brand strategy - which will include its new budget carrier, Peach Aviation - and aim to reduce group costs by 100 billion yen during the period.

It said the move comes "in the face of increased competition from a new wave of low cost carriers, other carriers in the region."

ANA will "strengthen network carrier business model, focusing especially on 'long-haul' and 'connection demands'" it said.

Japan's aviation market has long been dominated by ANA and JAL, but 2012 will see the launch of a number of new low cost carriers that are expected to provide competition to these established marques.

ANA last year set up Peach with a Hong Kong investment fund, with flights scheduled to start in March.

JAL has joined forces with Australia's Qantas and Mitsubishi Corp to launch Jetstar Japan, with five routes slated to begin in July.

AirAsia Japan, a tie-up between ANA and Malaysia's AirAsia, will begin flying in August.

ANA's business plan also outlines plans to increase operating profit to 130 billion yen (S$2.09 billion) by March 2014, up from the 90 billion yen it recent forecast for the year to March 2012.

ANA to boost international service by 22% in two years

AFP | Fri, Feb 17 2012

The Japanese carrier faces tough competition from a growing budget sector and rival Japan Airlines.

ANA to boost international service by 22% in two years

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