MIAMI – ANA (NH) announced today that it is transforming to a new business model designed to strengthen the company’s operations and position itself for future growth. According to a company press release, the ANA Group will carry out a structural revamp that includes launching a new airline brand in 2022.
There are three primary reasons for the transformation:
- Demand from business travel will permanently decline due to changes to the nature of work, such as the use of online conferences and meetings.
- Demand for leisure travel will likely continue to remain robust.
- New potential for demand is expected from untapped markets with preference for greater hygiene during travel, airlines with high ESG policies, adoption of contactless and automated options, simplistic services, and more customization options.
Comments from ANA CEO
“ANA is embarking on an ambitious transformation that will strengthen operations and position it for long-term growth and success in a market still reeling from COVID-19,” said Shinya Katanozaka, president and chief executive officer of ANA Holdings.
“As we work to fully account for the current situation, we will introduce a new business structure based on two major strategies. This comprehensive transformation initiative is not simply about cutting costs. Instead, it will address how travel has changed so that ANA has a framework for an entirely new, future-oriented operational strategy.”
New Airline Brand
ANA Group will establish a third airline brand around fiscal 2022. This entity will target demand for low-cost, medium-distance flights to destinations in Southeast Asia and Oceania. By using the current Air Japan (NQ) entity as the foundation, the brand will be capable of responding to sudden changes in demand and begin operations quickly after its establishment.
Additionally, the use of Boeing 787 aircraft configured with 300+ seats will deliver low unit cost operations. Some industry experts think the strategy of using Dreamliners to target medium-haul leisure traffic is a direct counter to Japan Airlines’ ZIPAIR (ZG). That low-cost airline launched just last week and is already planning an expansion into new markets.
The target markets for ANA’s planned entity appear to be closely aligned with those of ZIPAIR. Currently, ZG flies to Seoul from Tokyo’s Narita airport and will start one-way flights to Bangkok this week. Its recent ETOPS certification means routes to Hawaii are firmly in the cards once border restrictions allow.
ANA and Peach Aviation Sharpen Their Focus
The ANA brand will remain the premium brand and transform into an airline that places an emphasis on “universal service.” It will provide new products and services that meet the needs of the post-COVID customers, a brand that is considerate to the well-being of people and the environment.
Furthermore, ANA will use digital technology to promote integrated services with a focus on “personalization” and “customized service,” according to the press release.
Peach Aviation (MM) will continue to expand its customer base to the business passenger and to families, in addition to leisure customers. It will pursue wider cooperation in marketing with ANA through the addition of initiatives such as the exchange of ANA mileages to MM’s points.
Complete details on the transformation are available on the company’s web site.
Featured image: LiamFunnell