All Nippon Airways is stepping up the pace of its international expansion as part of a push to broaden its horizons. The Japanese combination airline has signalled plans to push further afield with freighter operations, which will bring about changes in its cargo strategy.
To date, the carrier’s maindeck activities have concentrated on its domestic market and major economic centres within relatively easy reach for its fleet of B767 freighters, such as Seoul and Shanghai, Taiwan and Hong Kong. The farthest point covered by its overnight service has been Singapore.
Much of this has been built in tandem with ANA subsidiary company OCS and Japanese parcel logistics giant Yamato Express. This is set to continue. “We would like to make an effort to offer this kind of service to more cities,” a spokesman for ANA said.
At the same time ANA management is casting its sights at more distant markets. Lately, top brass has indicated that it wants to extend its reach to India and other markets in South Asia.
This will challenge the operating model for the carrier’s freighter operations, which are centred on its hub in Okinawa. On thinner routes, it would be challenging to feed traffic through the hub, the spokesman remarked.
He added that one likely solution under consideration is to devise freighter routes with multiple stops to boost payloads and utilisation. Some potential routings have been under the microscope, but no decisions have been made so far.
Cathay Pacific has been a major proponent of a multiple stop strategy for freighters. In recent years it has expanded its maindeck network, both within Asia and in overseas markets, through the addition of stops to existing routes, most recently Phnom Penh, which was included in a Singapore-Penang-Hong Kong route.
Besides extending its network, ANA Cargo management intends to elevate its revenues through the cultivation of high-yield traffic. “We will develop better transportation environment for temperature-sensitive and pharmaceutical freight,” the spokesman said.
ANA’s freighter fleet, which currently stands at ten B767 all-cargo aircraft, will expand through the planned addition of two more 767 freighters. They are due before the end of next year, but no firm delivery date has been set, nor has management decided whether to go for production freighters or converted 767s, according to the ANA spokesman.
Meanwhile ANA is moving to extend its reach indirectly. Last summer it unveiled a joint venture agreement with Lufthansa Cargo that calls for joint sales activities on the basis of antitrust immunity. Last month it followed this up with a similar deal with United Cargo.
By Ian Putzger
Air Freight Correspondent | Toronto
