ANA Holdings, Japan's largest airline group, recently set out its corporate strategy for achieving further growth over the period FY2014-2016 in the face of an increasingly competitive business environment.
The key elements of the plan are:
Further expansion in international traffic, supported by growth at Haneda airport
An increase in the cost reduction target to \136 billion
Targeting a doubling in net profit and 20% rise in revenues between 2014 and 2016
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The business conditions in which ANA HD operates are challenging, with the persistent weakness of the yen leading to increased costs and higher fuel prices and intense competition reducing unit prices.
However, the Japanese government's fiscal and economic policies are expected to support a recovery in corporate performance and a sharp increase in inbound travelers with 10 million people visiting Japan in 2013.
ANA HD's objective is to continue to maximize group profitability, whilst ensuring tight management of costs.
The company will also work to optimize its business portfolio, taking advantage of the expansion of international slots at Haneda Airport to broaden growth across Japan and Asia and the opportunities presented by the Government's goal of achieving 20 million foreign visitors to Japan in preparation for the Tokyo 2020 Olympics.
