future challenges of open skies agreements jiti aviation seminar october 9 th, 2015
TRANSCRIPT
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
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)
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
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.