2018_2q_ana_e
5/26 - Business Strategy

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◎The third point is the progress of the Air Transportation business. ◎In the International Passenger business, we increased flights on Asia and North America routes. At the same time, we strengthened products and services by deploying new aircraft. We will continue to expand ASK and drive Group growth. ◎The Domestic Passenger business is utilizing narrow-body aircraft to promote demand and supply optimization while working to maximize revenues through our flexible fare strategy. We will continue strengthening our Group revenue platform. ◎The International Cargo business captured firm demand and improved yield thanks to such factors as the fare raises. On the other hand, we are controlling freighter capacity as we expand our passenger aircraft network. Through the restructuring of our freighter network, we will improve business profitability. ◎Looking at the LCC business, Vanilla Air strengthened yield management that resulted in improved revenues. Even on the mainstay Taiwan route, competitiveness recovered and performance is steadily improving. Peach Aviation positioned Sendai Airport as a hub from last September and launched the operation of new routes. Moving forward, we will continue to support both companies from the position of Group management for ensuring their ability to take advantage of their respective strengths so that they will operate successfully in Japan and throughout Asia. ◎Looking at costs, we will solidify the management platform for our future growth by enhancing investments in safety, quality services, and human resources. We continue to position the safety as our highest priority and reinforce basic quality. For human resources, we will carefully evaluate the supply and demand balance on the labor market while conducting stable hiring to meet future growth. ◎Please turn to page 7.