【ノート】
◎Next, I will discuss our LCC strategy.
◎We plan to complete the merger of Vanilla Air and Peach Aviation by the end of October this year. In fiscal 2019, total capacity for the two airlines will rise marginally year on year; however, we expect fiscal 2020 ASK to be about 1.3 times higher than fiscal 2017.
◎In March, Vanilla Air employees will begin transferring to Peach. Further, we will convert aircraft while transferring flight operations for Vanilla routes gradually to Peach. Once the merger is complete, we plan to expand our routes based in Kansai and Narita airports, entering the mid-range international routes to/from China and Asia in fiscal 2020.
◎The graph on the lower right shows the forecast for ASK per aircraft in our LCC business. By integrating the resources of each airline to generate efficient aircraft operations, we expect to see fiscal 2020 plan figures at more than 1.2 times compared with fiscal 2018.
◎While Peach has established a unique marketing presence in the Kansai and neighboring Asian service areas, Vanilla Air has gained recognition steadily in the Tokyo Metropolitan area. In the future, we will be able to capture demand across a wider range of prices, expanding routes under an integrated brand. Our aim is to generate greater efficiencies, while becoming the leading LCC in Asia.
◎Please turn to page 11.