future challenges of open skies agreements jiti aviation seminar october 9 th, 2015
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Future Challenges of Open Skies Agreements
JITI Aviation SeminarOctober 9th, 2015
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ANA Business Overview
Boeing 787 TTL 32
Boeing 777 TTL 54 Boeing 767 TTL 55
Airbus A320 TTL 18
Boeing 737 TTL 59
Bombardier DHC8 TTL 21
Including 6 aircraft operated by Vanilla Air (all leased aircraft)*As of Mar 31, 2015
64 consolidated subsidiaries and 18 equity-method subsidiaries and affiliates *
Operating revenue JPY 1,713 Billion *Operating income JPY 91.54 Billion *Net income JPY 39.24 Billion *
Number of employees 34,919 *
* As of March 31, 2015
Number of aircraft: 242
• Awarded SKYTRAX exclusive 5 star rating for the third year running (2013-15)
• The world’s Best Airport Services• The world’s Best Transpacific Airline
15th largest airline in the world by total passengers**
** IATA World Air Transport Statistics, 2014
ANA Business “STAGGERED”
Boeing 787-9 TTL 3
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ANA Today
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015P0
20,000
40,000
60,000
80,000
100,000
120,000
Domestic International
9/11 SARSLehman
shockEarthquake
2001 2003 2008 2011
1952
1986
1999
foundation
Internationalflight started
Star alliancemembership
60 bilASK
49 bilASK
50 milPax
As of March 2015
(mil ASK)
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ANA International Network
ChinaBeijingDalianShenyangQingdaoChengduShanghaiHangzhouGuangzhouXiamen
Rest of AsiaSeoulTaipeiHong KongYangonHo Chi MinhManilaBangkok
SingaporeJakartaDelhiMumbaiHanoiKuala Lumpur
North AmericaNew YorkWashington DCChicagoLos AngelesSan Francisco
San JoseSeattleHonoluluVancouverHouston
ANA Network
EuropeLondonParisFrankfurtMunichDusseldorf
* As of Sept., 2015
● ANA operates 952/w regular international passenger flight on 56 routes● In winter 2015, ANA will add Brussels and Sydney (58 routes in total)
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ANA and Alliance Partners
As of April 2015
● ANA’s flights are marketed by 23 partners (15 from Star alliance)● ANA markets flights of 26 partners (18 from Star alliance)
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US-Japan Openskies & Trans-Pacific Market
● Japan-US Openskies enabled metal neutral JVs by JPN & US airlines● Passengers will enjoy choice out of three global alliances
NH=UA JV
JL=AA JV
DL’s on-line services
JL
JL
AA
UA
NH
NH
DL
DL
Asia AmericasCompetition among global alliances
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● Open market/de-regulation oriented● Entry barrier removed● Pro-competitive/efficient management
Open Skies Policy
Openskies increases users’ benefits through competition
● Protectionist/regulation oriented● Government dependent/spoiled management
Openskies
Set Back of Openskies
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Level Playing Field is essential for fair competition
Subsidy justification:
● MEIP (Market Economy Investor Principle)
Subsidy may be justified (case by case):
● Sustainable services for remote area
● Turn-around program for airlines in difficulty under open rules
● Fostering infant industry in developing countries
Level Playing Field and Subsidy
Increased users’ benefit through fair competition8
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State Owned airlines
Fair competition among private and state owned airlines
Agenda for State Owned airlines
● Proper disclosure/transparency
● Privatization
● Independent from government influences
● Market oriented/efficient management
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Thanks.