10/33 - Air Transportation Business (4)  LCC Brand

◎Next, I will discuss our LCC strategy. ◎Our policy for Vanilla Air and Peach is to utilize common platforms, including aircraft, fuel, and maintenance, to increase competitiveness while expanding business. By fiscal 2022, we plan to increase combined ASK for the two LCCs by 90% compared to this fiscal year. ◎The graph on the bottom left shows transitions in passenger numbers which have increased steadily since fiscal 2011. We project the two LCCs will service approximately 8 million passengers in total this fiscal year. ◎Moving forward, the LCC business will engage in mid-distance routes to capture demand in the Asia region, which is expected to see continued growth. We will deploy narrow-body aircraft with a capability of middle-distance operation to increase our options for route destinations, which will enable us to capture a wider range of inbound and leisure demand. At present, we plan to begin this operation in fiscal 2020 and expect this to contribute to our Group’s growth strategy. ◎Please turn to page 11.