ANA Holdings Inc., recently unveiled its mid-term corporate strategy to 2025 and its new management vision — which has been revised for the first time since the holding company structure was established in 2013 — as the company charts for a "sustainable" future growth.
ANA Holdings, which controls several subsidiary carriers, including All Nippon Airways (ANA) and budget airline Peach Aviation Limited, noted that, in particular, the company is looking to focus on its core airline business between 2023 to 2025 but will also strengthen its "non-airline business" to accelerate and lay the groundwork for further growth to 2030.
"After successfully managing through the last few and challenging years with the effort of our employees, loyalty from our customers, and support from our shareholders and stakeholders, we are happy to announce our three-year strategy that positions ANA HD for the future," said Koji Shibata, president and chief executive officer.
"By strengthening our core airline business and transforming the organization, we will strive to realize our new management vision for a brighter future based on sustainable growth," he added.
Expanding cargo business in the mid-term
The FY2023-2025 strategy of the Japan-based holding company principally engaged in the aviation business was unveiled following what it called a "transformative measures" to achieve a new business model announced in October 2020 during the unprecedented circumstances of the COVID-19 pandemic.
"Now, with recovery in demand becoming clear, ANA HD sets sight on a brighter future as we position the airline business at our core and expand into new realms to strengthen the ANA ecosystem, with the aim to shift to a growth trajectory toward 2030," ANA said in its announcement.
ANA noted that part of the highlights of the new strategy would be to position the airline business at the core and aim to enhance profit in the non-airline business.
Source: ANA Holdings Inc.
It said that though these initiatives, the aviation company aims to recover profitability and financial performance to pre-COVID levels and, through further business expansion from FY2026 and beyond, exceed pre-COVID levels.
The three pillars of the business strategy to FY2025 are maximizing profit in the airline business by optimizing the ANA Group's multiple brands and expanding the cargo business, expansion of non-airline profit through a focused allocation of resources based on categorized fields of businesses, and expand the ANA Group's ecosystem for sustainable growth.
ANA noted that it would maximize profitability by optimizing the multiple brands and expanding the cargo business.
AirJapan launch in the second half of 2023
It would, for example, grow its airline business portfolio with the introduction of AirJapan in the second half of 2023 and co er a wide range of global demand with its three brands.
AirJapan is targeted for mid-range routes from Narita International Airport to establish a "new revenue source," according to ANA.
Among others, the company also noted focus on being able to "flexibly adjust routes, schedules, and frequencies of the three brands in order to maximize profit in the airline business."
"Maximize cargo business profit by leveraging strength as a 'combination carrier' that utilizes both passenger aircraft and freighters," it added.
Meanwhile, ANA Holdings is looking to achieve operating income of 120.0 billion yen and net income of 63.0 billion yen in FY2023, and to increase operating income to 200.0 billion yen and net income to 122.0 billion yen in FY2025.
In its announcement, ANA also revealed its new management vision, "Uniting the world in wonder" — to replace its earlier mission statement, "Built on a foundation of security and trust, "the wings within ourselves" to help to fulfill the hopes and dreams of an interconnected world."
"As a basis, the new management vision reflects the future envisioned by our employees in the countless dialogues leading up to today. The new management vision expresses our desire to realize a future in which all ANA Group employees around the world can work with enthusiasm and share joy with our customers and society," ANA further said.