ALL NIPPON AIRLINES (ANA) has announced further cuts in expenditure and staffing, alongside a drive to boost revenues by 10% through increased aircraft utilisation.
The latest cost-cutting drive, which will run over the next three years, comes as part of the second phase of the airline's extensive restructuring effort.
ANA aims to cut its 13,400-strong workforce by 700, through streamlining of its administration and curtailment in the hiring of new staff. The overall target is for a 20% reduction in personnel costs per seat-kilometre.
Aircraft utilisation will also be increased by 10%, from the current 2,700h a year, to 3,010h by March 1998. ANA hopes to improve maintenance turn-around time and reduce the number of idle aircraft used for training.
Capital expenditure on new aircraft will be kept to a minimum and the retirement of two older Boeing 747SRs delayed by two years. ANA's fleet is to increase, from 119 aircraft to 133 by 1998, with the introduction of smaller, narrow-body aircraft for use on more profitable high-frequency regional and domestic routes.
The airline's, 1995 business plan includes, a 27% increase in international route capacity, mainly on new regional services from Osaka's Kansai Airport. Capacity on domestic routes will also be increased by 4%.
ANA reached an agreement in January with Airbus Industrie to defer delivery of five long-haul A340-300s until at least the year 2000, in return for ordering ten smaller A321s and an additional two A320s. The carrier has also traded in orders for four Boeing 747s for three more 777s and three 767-300s (Flight International, 8-14 February).
The restructuring is designed to raise ANA's operating revenue to '910 billion ($8 billion), in the financial year to March 1998. The company estimates, that it will break even by the end of the current year to March 1995, with a projected revenue of '794 billion.
The first phase of ANA's restructuring plan, which was launched in 1994 is intended to boost revenue, by '20 billion and cut costs by '6 billion. That plan also included the loss of 1,500 jobs.
"We are on course to achieve the goals of the first phase," says ANA corporate-planning executive vice-president Kichisaburo Nomura. "Because of harsh operating conditions, further measures are required to ensure a secure future for us into the next century, which is why we're implementing phase two," he adds.
Source: Flight International
