◎ This slide shows our LCC business strategy.
As you can see, our investment ratio in Peach Aviation reached 67.0%. We will use this opportunity to capture LCC business growth while further increasing the corporate value of our Group.
◎ The graph on the left shows transitions in the number of seats in major Asian regions.
Amid an overall increase in supply, LCC seat share has increased from roughly 10% overall in 2008 to over 20% in 2016.
In terms of number of seats, LCCs have increased approximately four-times as the presence of LCC in Asian regions has risen rapidly.
◎ On the other hand, in Japan, as shown in the graph on the right, our Group has driven the Japanese LCC market. Among Japanese LCCs, Peach Aviation and Vanilla Air combined for 52% of seat share in fiscal 2016, indicating that they have established firm positions in the market.
◎ Currently, routes offered by our LCCs extend to China, Korea, Taiwan, Vietnam, Thailand, and the Philippines. They have enhanced their recognition in Asia as Japanese LCCs.
Moving forward, we will expand our LCC business, including new routes from local cities in Japan, as the entire Group works to accelerate the expansion of our airline business domains.
◎ Please turn to page 10.