After a tough year of uphill recovery in 2022, Japan's All Nippon Airways (ANA) is ready to take on this year and beyond with the primary goal of sustainable growth for the long-term future. To achieve its goals, the airline unveiled its Financial Year 2023-2025 mid-term corporate strategy that details the transformative measures for a new business model.
Instilling a new management vision
Since the corporate strategy is looking to revamp ANA in some sort, the first element includes a revised management vision for the first time since 2013. The new management vision expresses the airline's desire to realize a future where all its employees worldwide can work enthusiastically and share the joy with customers and society.
The new management vision states that ANA is focused on 'Uniting the world in wonder,' and it will continue to 'inspire our employees, customers, and society to explore endless possibilities with diverse connections that start in the sky.'
When paired with the mission statement 'Built on a foundation of security and trust, the wings within ourselves' and to 'help to fulfill the hopes and dreams of an interconnected world' as a basis, the new management vision reflects the future envisioned by ANA's employees.
Overview of ANA's Corporate Strategy
With a revised management vision, ANA is confident that working towards all elements of its corporate strategy will be smoother. The three years to Financial Year 2025 will be a phase to lay the groundwork for further growth to achieve its management vision.
Highlights of the strategy will position the airline business at the core and enhance profit in the non-airline industry, promoting the flow and activity of the airline's customers in both areas.
With these initiatives, ANA will aim to recover profitability and financial performance to pre-pandemic levels and, through further business expansion from Financial Year 2026 and beyond, exceed pre-pandemic levels as the Star Alliance member seeks to achieve its new management vision.
Improving the airline business
Under the ANA Group, there are currently only three airlines - ANA, ANA Wings, and Peach Aviation. For ANA and ANA Wings, both airlines are expected to enhance profitability by restructuring the entire route network and maximizing the customer experience value through human and digital resources.
As for Peach Aviation, the goal is to focus on profitability by capturing demand from leisure travel to Japan by increasing short- and medium-haul international routes in Asia. The low-cost carrier will also be expected to optimize the number of aircraft within its fleet to focus on generating demand on new regional routes.
So far, ANA has covered domestic, regional, and full-service international routes. However, the airline is seeking to enhance its business strategy further with the launch of AirJapan in the second half of this year, a budget carrier set to capture international demand from major cities in Southeast Asia and beyond.
Strengthening the non-airline business core
With the demand for air travel easily fueling the airline business strategy initiatives, ANA also recognizes the need to focus on its non-airline business core and seeks to expand revenue from its non-airline businesses by allocating resources based on each categorized field.
In Financial Year 2025, the airline is looking to strengthen its non-airline businesses to achieve an annual revenue of 400 billion yen ($2.982 billion) and an operating income of at least 24 billion yen ($178 million) from its core units, such as trading, logistics, real estate, and digital investment and commercialization.
Collective contributions to the ANA Ecosystem
Strengthening its airline and non-airline business at their respective cores will not only elevate ANA's profitability and brand image but will also nourish the airline's overall ecosystem to promote long-term sustainability in this ever-competitive industry. However, ANA acknowledges that even with increasing profits and all units performing well, the customers are still the heart of the airline.
And so, by Financial Year 2025, the Japanese carrier aims to further establish the ANA Ecosystem by enhancing three core functions; the ANA Mileage Club Application, the ANA Mall, and ANA Pay. These three functions will generate customer flow between the airline and non-airline businesses by expanding on the content and taking advantage of data technology.
For the ANA Mileage Club Application, the airline wants to redesign and evolve the current application with the ANA Mall into a super, all-in-one application where customers can live and shop through anything with miles. This ties in with the upcoming ANA Pay function, set to be released this April, which will diversify payment and make shopping and payment all the more convenient.
Bottom line
After unpacking its corporate strategy, it seems like ANA has plenty on its plate for the next few years with network restructurings, fleet optimization, enhanced digitalization, and much more. Regardless, it'd be interesting to see how much bigger the airline will grow and how much further its growth will allow it to fly.
And for what it's worth, the excitement for the airline's long-term growth indeed lies deeper within its airline business; with the upcoming launch of low-cost carrier AirJapan - will the low-cost carrier survive in Japan's post-pandemic aviation industry? Then there's the likelihood of new route launches from ANA and Peach Aviation - where else could these two airlines fly to?
What do you think of ANA's new corporate strategy? Tell us in the comments below.
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Photo: Hervé Goussé - Master Films via Airbus
All Nippon Airways
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- IATA/ICAO Code:
- NH/ANA
- Airline Type:
- Full Service Carrier
- Hub(s):
- Tokyo Haneda Airport, Tokyo Narita Airport
- Year Founded:
- 1952
- Alliance:
- Star Alliance
- CEO:
- Shinichi Inoue
- Country:
- Japan
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