◎ I will explain the direction of the Air Transportation business with fiscal 2020 in mind.
First, I will discuss the ANA brand strategy.
◎ With the International Passenger Business, we expect ASK expansion to be mild in the next two years because the distribution of slots at Haneda Airport has been settled.
While taking advantage of our superior position as Haneda’s largest international network carrier, we will continue to capture further demand by utilizing Narita routes as well and pursue improved yield management.
We also will enhance products and services by deploying the Boeing 787-9 on Asian and Honolulu routes.
From fiscal 2019, we will promote a resort strategy based on the deployment of the Airbus A380, the first use of the aircraft by Japanese carriers.
◎ With the Domestic Passenger Business, we are pursuing further optimization of supply to demand by deploying the Airbus A321 from the second half of 2016.
By accelerating dynamic fleet assignments, we will aim to further optimize supply to demand. In addition, we will solidify the Group revenue platform by promoting the use of our domestic flights among new customer layers, such as foreign visitors to Japan and millennials.
◎ For the International Cargo Business, we will continue to optimize freighter capacity while evaluating overall market supply and demand balance.
We will also aim to improve profitability while implementing initiatives related to cross-border ecommerce for China, a promising growth market.
◎ Please turn to page 9.