ANAHD Arata Shibata talks about strategy to turn profitable "Take all recovery demand" April 19, 18:08
The aviation industry has been experiencing strong headwinds for two years after the infection with the new corona.
In April, Koji Shibata was appointed as the new president of ANA Holdings.
Mr. Shibata, who is from a remote island in Kagoshima prefecture, is also known as the most international group in the company.
He asked about his strategy on how to steer to achieve profitability this year.
(Kentaro Makata, Reporter, Ministry of Economic Affairs)
“Once a small company” by reducing costs
"By becoming a small company and surviving the wave of corona, the entire company has been working as one to reform the business structure and reduce costs."
ANA Holdings is expected to be in the red for the second consecutive year.
When I asked Mr. Shibata, who became the new president this month, about his strategy for becoming profitable this year, he looked back on his efforts so far with the unique expression of "becoming a small company once."
The company has reduced the number of aircraft it owns, which was more than 300, by about 10%.
So far, we have taken thorough measures such as sending a total of 2,100 employees to external hotels and call centers, and cutting wages by 30% on an annual income basis.
Furthermore, even in the daily operation of airplanes, if the number of reservations is small, we changed to a smaller aircraft, and we were able to eliminate waste by agile aircraft management.
Literally, we have aimed to reduce the size of the company and create a business environment that makes it easy to achieve profitability.
As a result of these cost reductions, the company achieved an operating surplus for the first time in eight quarters in the three-month financial results from October last year, when the infection had subsided and demand had temporarily returned.
In this fiscal year and 2022, which have just started, it is said that "turning into the black is inevitable" even in the full-year financial results.
President Shibata
"Currently, the cost-side effect is appearing. In the future, I think that how we can pick up recovery demand will be a major factor in turning profitable."
700 overseas business trips, the key to revival is "international flights"
“International flights” are the key to a full-scale recovery of business performance by President Shibata.
Currently, the number of international passengers is only about 20% of that in front of the new Corona, but we can say that "demand will definitely return."
Although it has become possible to communicate in various ways online, there is a strong need to meet directly with business partners for business negotiations, to meet family and friends who live far away, and to visit the site for sightseeing. Because I feel it.
To tell the truth, Mr. Shibata is called "the most international faction in the company" and has an unfamiliar feeling for international flights.
Since joining the company, I have traveled overseas more than 700 times and have also been stationed in Europe.
I have obtained 11 passports so far.
Immigration stamps are closely stamped on every page.
Mr. Shibata's strong commitment to overseas had roots when he was young.
Mr. Shibata is from Kakeromajima, a remote island about 450 kilometers away from Kagoshima City, in the Amami Islands.
When I was a boy who loved fishing, I grew up watching the boats coming and going from the port to foreign countries up close, and I came to have a dream of freely flying around overseas.
President Shibata
"The village where I was born and raised in Kakeroma has a large bay in front of me. It's a very deep and quiet bay, but when a typhoon approaches, a large cargo ship on a foreign route It's a bay where passenger ships are evacuating.
Looking off the coast from our village, there are a lot of big ships lined up. It's a sight that makes me remember the dream that I can go to the world when I get on that ship. So
, when I saw that, I had the feeling that I would like to go to the world on that ship someday. "
Mr. Shibata, who has a strong longing for overseas, chose to go to Tokyo University of Foreign Studies.
She took a two-year leave of absence from school and went to China to work as a dispatched worker at the Japanese Embassy in Beijing.
At that time, the crew of ANA, who had begun to fly international charter flights, was seen at Beijing Airport and left a strong impression on me.
After graduating from university, I joined ANA to contribute to the expansion of international flights.
President Shibata
"Oldness and Kagoshima airlines were only ANA at that time. I witnessed the scenery I saw at Kagoshima Airport at the airport in Beijing, and the appearance of the cabin attendant walking in the airport was very cool and impressive. is".
New international brand "Aiming for" total "recovery demand"
Last month, ANA Holdings took an offensive move on an international flight.
In anticipation of a recovery in demand after Corona, we announced the launch of a new brand, "Air Japan."
ANA Holdings now has two brands.
"ANA" provides full services such as first class and in-flight meals by connecting long distances such as the United States and Europe.
It is a "peach" of LCC (low-cost carrier) that is cheap and specializes in short distances such as China and Taiwan.
And AirAsia, which will be launched as the third brand this time, will be responsible for medium-haul routes such as Southeast Asia and Oceania.
While paying attention to the comfort of the cabin such as seats, we will keep the price at the same level as LCC by making the service an option, aiming to "take good points" of ANA and Peach.
While it is uncertain how aviation demand will recover in the future, we aim to capture business demand by making it cheaper to capture tourism demand, improving livability, and providing services at an additional charge.
President Shibata
"We are paying close attention to the markets including Southeast Asia, Asia, and Oceania. We have decided that it is necessary to secure the equipment, brands, and services to support those markets, so there. We have prepared a new three arrows and a third weapon
. We will take all the recovery demands with these three brands. I often say "total take", but I am prepared not to miss it. I want to do it. "
Post Corona Glitter Metaverse Business Launch
On the other hand, based on the current situation of Corona, we are also focusing on non-aviation business.
One of them is the "Metaverse" that is currently attracting attention.
We are planning to launch a service that allows you to experience traveling and shopping in a virtual space.
Inviting the creators of popular video games, we have realistically reproduced sightseeing spots such as Kyoto.
First of all, the idea is to increase the number of foreign customers who are interested in Japan through the experience in the virtual space, and when the infection has subsided, let them fly to the real Japan.
The company aims to double the revenue from these non-aviation businesses by 2025 to 400 billion yen.
President Shibata
"I want to go to Japan and see the cherry blossoms after seeing the Metaverse" or "I want to go to Japan and go to Kyoto", and if foreigners join our economic zone, there are now 37 million people. The
number of mileage members will reach 50 million, and eventually 100 million. I don't think this is a dream at all.
Since the seeding of these new businesses is over, each company is individual in each business area. I think it will lead to raising the level of the entire group. "
In this interview, President Shibata reiterated the word "mutual respect", stating that he respects each other.
Living on an island where the inhabitants have lived close to each other.
It means that ANA has been working while valuing mutual understanding with overseas airlines.
Mr. Shibata said that even if he became the top management, he would like to cherish the feeling of respect for each other and mobilize the power of the entire group.
ANA is currently forcing employees to put up with lump-sum payments for two years.
As the effects of corona continue to prolong, some people are leaving the aviation industry if the future is uncertain.
I would like to continue to pay attention to how we will take on the difficult steering, which will achieve profitability while working together with our employees.
Reporter of the Ministry of Economic Affairs
Kentaro Makata
After
working at the Obihiro Bureau, Takamatsu Bureau, and Hiroshima Bureau, he is currently in charge of the Ministry of Land, Infrastructure, Transport and Tourism in the Ministry of Economic Affairs.