Aug 25, 2016

ANA Group's freighter capacity decreased by 16%

On Aug. 24, ALL NIPPON AIRWAYS (ANA) Group announced its air transportation business plan for the second half of FY2016. Based on demand trends, the group will restructure a part of routes on its freighter networks as the freighter capacity (on a ton-kilometer basis) decreased by 16.3% compared to the same period of the previous year. With regard to the international cargo business, the volume of transportation increased in the first quarter (April-June 2016), but revenues decreased due to the market downturn, a decline in unit prices, and other factors. ANA's spokesperson stated at the interview held on Aug. 9 saying, "We anticipate that the balance of supply and demand will stay unchanged during the July-September period. We therefore plan to reduce the volume of supplies in order to improve the substance of operations." ANA plans to adjust supply and demand in the second half of current fiscal year and improve profitability through the operation of charter and extra flights during the peak season.

On Sept. 1, ANA will decrease its presently thrice a week one-way flights on the Narita-Bangkok-Jakarta-Narita route to twice a week. On Oct. 30, the company will also decrease its one-way flights on the Okinawa-Singapore route from six times a week to five times a week, and suspend its flights on the Singapore-Narita route (currently, one one-way flight a week). The company will decrease its round-trip flights on the Narita-Guangzhou route from seven times a week to once a week, while starting new operations on the Narita- Guangzhou route and the Guangzhou-Okinawa route with six one-way flights a week respectively. Also, ANA will increase its one-way flights on the Kansai-Shanghai route and the Shanghai-Narita route from three times a week on both routes to four times a week respectively.

With respect to domestic routes, ANA will decrease its one-way flights on the Kansai-Okinawa route from 12 times a week to six times a week and will suspend the current six one-way flights a week service on the Narita-Nagoya route. Meanwhile, the company will start new operations on the Kansai-Nagoya route with six one-way flights a week. Also it will increase its one-way flights on the Okinawa-Narita route and the Narita-Kansai route from six and three times a week now to seven and four times a week respectively.

The capacity of freighters in and out of Okinawa will decrease from 285 tons to 200 tons per day for arrival and from 185 tons to 150 tons per day for departure on domestic routes (Kansai, Chubu, Narita, and Haneda routes: including overseas-destined international cargo). On the other hand, the capacity on international routes will increase from 250 tons to 300 tons per day for arrival. The capacity for departure will be 350 tons per day, which is the same level as the current capacity.

On Oct. 30, ANA will start to operate airline charter flights between Narita and Okinawa, which are currently operated by Nippon Cargo Airline, resulting in an increase in flights between Okinawa and Narita. The company will also increase its one-way flights on the Narita-Kansai route, the Kansai-Shanghai route, and the Shanghai-Narita route to six times a week during periods of Oct. 30 to Dec. 31, 2016 and Feb. 16 to March 25, 2017.

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