All Nippon Airways Reveals Plan To Launch New Widebody LCC
ANA Boeing 787s
Credit: Rob Finlayson
All Nippon
Airways (ANA) plans to create a new low-cost widebody unit and cut back its
mainline fleet as part of a major overhaul of its strategy spurred by the
COVID-19 crisis.
The new
carrier is expected to be launched during the fiscal year beginning April 1,
2022. It will use Boeing 787s to fly routes to Southeast Asia and Oceania. ANA
intends to use its existing Air Japan entity–primarily a charter operation–as
the basis for the new carrier. ANA told Aviation Daily the name is still to be
decided.
ANA said the
subsidiary will target demand for “low-cost, medium-distance flights.” The
carrier is expected to achieve lower unit costs by operating 787s with more
than 300 seats in a two-class configuration. A diagram released by ANA shows
the new carrier’s model positioned between the ANA mainline unit and the
group’s existing narrowbody LCC Peach.
Rival Japan
Airlines launched its Zipair Tokyo widebody LCC in 2020, operating two 787-8s.
Peach is also sticking with its plan to launch medium-haul LCC services with
the addition of Airbus A321LRs.
ANA
confirmed that it will be retiring many more aircraft in 2020 than it had
previously planned. The carrier intends to retire 35 aircraft, including 22
Boeing 777s. This is a dramatic increase from its pre-COVID-19 plan of seven
retirements. The airline has also deferred a few deliveries due in 2020.
There will
still be 13 new additions in fiscal 2020, so the ANA fleet will decrease by 22
aircraft to 243 by the end of the fiscal year. The original plan was for a net
increase of nine. Peach will keep its fleet flat at 33 aircraft for fiscal
2020, versus planned growth of two aircraft.
Overall,
ANA’s cost-reduction efforts are expected to yield savings of ¥150 billion
($1.4 billion) in fiscal 2020, and ¥250 billion in fiscal 2021. Its other
measures include downsizing and consolidating office space, increasing
cooperation on maintenance within the group, and centralizing procurement
procedures. The U.S.-based Pan Am International Flight Academy will be
dissolved.
Labor costs
will be reduced by shifting outsourced business in-house, and temporarily
relocating employees within and outside the company. About 100 employees will
be sent to other companies with workforce shortages, with the number rising to
400 by spring 2021. ANA said it will also put a proposal to unions to reduce
wages and bonuses and to expand unpaid leave programs.
Another main
plank of the revised business plan is the creation of a data-driven digital
platform, encompassing all aspects of the group’s business to “create value
beyond the airline operations.”
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