China Airlines - Orient Aviation

COVER STORY
ANA to fly to key cities like Seoul, Beijing,
Shanghai, Hong Kong, Hanoi and Taipei
within four hours. Even Bangkok is only
four and a half hours from Okinawa.
On July 1, ANA will operate the world’s
first B767-300BCF [Boeing Converted
Freighter]. By 2011, ANA expects to be
operating four widebody aircraft and 10
B767 freighters including BCFs.
Meanwhile, the airline has entered
a strategic cargo alliance with Asiana.
Yamamoto conceded his personal attempt
to establish a cargo alliance with Star
Alliance had so far not advanced as he
would have liked, so the Asiana partnership
is one way of expanding the cargo
business.
“We are aiming for businesses with high
yield. Japanese manufacturers are very
demanding so our service must be good,”
he said. Target markets for goods such as
semi conductors are intra-Asia and from
Asia to North America in the first instance,
with Eastern Europe and Central/South
America being eyed for the future.
A new freight oriented IT infrastructure
is being developed internally for use with a
new express delivery service, All Express
(Allex). ANA will be marketing Allex on
the side of its B767-300BCF freighters.
Referring to the current debate about
aviation’s contribution to climate change
and the industry’s efforts to mitigate its
impact, Yamamoto said ANA was working
with authorities to enable it to fly over
the large Yokota U.S. military air base in
Japan.
ANA flights from western Japan to
Haneda must skirt around the base for
security reasons. Direct flights would
reduce fuel burn. ANA also supports reafforestation
and coral farming initiatives
in Japan.
Mineo Yamamoto is a man in charge,
comfortable with where his airline is, but
conscious of finishing the job he set out to
do in 2005. Perhaps his philosophy could
be summed up by his company’s mission
statement. He says he wanted to give
ANA’s staff and customers “dreams and
experiences”.
Meanwhile his dream of more scuba
diving in Okinawa will have to wait a little
bit longer. ■
ANA FLEET
B747-400s 19
B777-300s 19
B777-200s 23
B767-300s 60
B737-700s 24
B737-500s 17
A320s 31
DHC-8-400s 5
DHC-8-300s 14
F50s 3
Total 215
On order:
B787s 50
B777-300s 5
B767-300s 2
B737-800s 12
B737-700s 16
MRJ-90s 10
Total 95
ANA’s fortunes change
under Yamamoto
ANA president and chief executive, Mineo
Yamamoto, has presided over three years of
profit at the airline. It began returning a dividend
at the end of fiscal 2003 after a five-year
hiatus.
In April, ANA announced a record net profit of 64.1 billion
yen (US$616.6 million) for the year ended March 31, a 96%
year-on-year increase, primarily achieved by the sale of its hotel
assets. Consolidated operating profit fell 8.5% year-on-year to
84.3 billion yen, squeezed by the rising price of jet fuel and the
accelerated depreciation of aircraft as ANA upgrades its fleet.
It is Boeing’s launch customer for the B787 Dreamliner,
which is now more than a year late.
Consolidated airline revenue for ANA’s international
operations was 311.5 billion yen, a 12% increase and passenger
numbers increased 6% to 48 million; ASKs were up 6.3% to
28.2 million kms and RPKs up 5.7% to 21.2 million kms. Load
factors were steady at 75.3%, a 0.4 drop.
Domestic travel was overall lower in fiscal 2007, but flexible
discount fare and revenue management policies, coupled with a
stronger push into the business market, meant revenue was up by
2% to 739 billion yen compared to 726 billion yen in 2006.
Passenger numbers were down 2% to 45.5 million, ASKs
marginally up at 62.5 million kms, RPKs down 1.6% at 40
million kms and the load factor was down 1.3% at 63.7%.
In consolidated cargo revenue domestic return was flat at
30.5 billion yen and freight was only marginally up at 463,000
tonnes. However, international revenue was up 16% to 72 billion
yen and freight up a whopping 20% at 333,000 tonnes from
278,000 tonnes in 2006. The international freighter fleet was
increased from four to six aircraft enabling ANA to increase
its coverage of North America, China and Asia.
ANA paid 30 billion yen more for fuel in 2006-2007 and
expects this to increase approximately by an additional 35
billion yen, year-on-year for the 2007-2008 year. A 22.1 billion
yen increase in revenue is forecast for the coming year, based on
a strengthened network and more responsive fare policy.
Commenting on the result, Yamamoto said a 90 billion
yen fuel bill was a major dampener on a good, but below
expectations, profit. “It shows how much fuel has affected our
profit. How do you go ahead and absorb that type of fuel bill?”
he said. The US$2.8 billion sale of its profitable hotel business
to concentrate on its core airlines businesses has given ANA a
formidable war chest. ■
34 ORIENT AVIATION june 2008