With headquarters at West Sussex, ALA is established in May 1995 by All Leisure Travel Holdings, Ltd. With Bob Stevens as CEO, an operations base is set up at London (LGW) and a workforce of 50 is recruited. An Airbus Industrie A320-200 is acquired with orders let for 3 more. Revenue flights commence with the holiday season in the fall.
Through October 1996, the company’s Airbuses transport a total of 119,000 passengers from London, Manchester, and Newcastle to destinations in Europe and the Mediterranean. It is decided not to begin a new tourist season and the company is shut down at the beginning of 1997.
ALL NIPPON AIRWAYS COMPANY, LTD. (ANA): Kasumigaseki Blvd., P. O. Box 100, 3-2-5 Kasumigaseki, Chiyoda-ku, Tokyo, Japan; Phone (81-3) 3592-3035; Fax (81-3) 3506-3596; Http://www. ana. co. jp (Japanese); Http://www. ana. co. jp/index-e. html (English); Code: NH; Year Founded: 1958. All Nippon Airways Company, Ltd. (ANA) is formed on Mach 1, 1958 through the merger of Japan Helicopter & Aeroplane Transport Company, Ltd., and Far East Airlines Company, Ltd. The company administration is largely made up of JHAT officials, including President Masuichi Midoro. The merged fleet includes Douglas DC-3s, de Havilland DH 114 Heron IBs, and several DH 104 Doves.
Service is started using Far East equipment over a route Osaka-Fukuoka via Iwakuni. On August 12, a DC-3 with 3 crew and 30 passengers crashes into the sea near Izu Island, south of Shimoda; there are no survivors.
In October, a technical committee is formed for the prevention of accidents. It determines that the previous practice of employing cannibalized spare parts from out-of-service airliners to make repairs must be halted. With a government loan, orders are placed late in the year for Convair CV-440s and de Havilland DH 114 Herons. Start-up costs and lost business due to the accident bring a loss of ?400,000.
The Japanese government grants the carrier full certification to operate over domestic trunk routes on April 1, 1959. Two Douglas transports inaugurate twice-daily direct service between Tokyo and Osaka. Capitalization is increased to ? 600 million (US$2 million) on April 27.
In May, a cooperative agreement is signed with Japan Air Lines Company, Ltd. (2). The first ANA CV-440 arrives at Tokyo (NRT) on August 19; it conducts its initial proving flight on September 1 as a DC-3 supplement on the Tokyo to Osaka trunk run. Following the September 26 typhoon that devastates Nagoya, causing 5,000 deaths, the government requisitions the CV-440 to help provide relief support.
CV-440 regularly scheduled service begins on October 10 from Tokyo to Osaka, Nagoya, and Sapporo. Pooled fares take effect with JAL-2 over these routes on the same day. During the fourth quarter, Sendai, Misawa, Nagasaki, Hakodate, and Kumamoto all join the company’s network. Additional DH 114s are placed on feeder routes toward year’s end.
Orders are placed in February 1960 for Fokker F.27-100s. On March 16, a DC-3, with 33 passengers and first flown by Pacific Southwest Airlines in California, collides with a JASDF F-86D fighter while landing at Komahi Airport, Nagoya; two passengers and a stewardess are killed aboard the civil aircraft.
Orders are placed on April 15 for Vickers Viscount 744s; the first 744 (formerly employed by Capital Airlines in the U. S.) is delivered on June 23 and enters service over the direct Tokyo to Sapporo route two days later. Joint founder Katsuyoshi Nakano is killed in the Hokkaido crash of an Auster J/5 Autocar on November 16.
The carrier’s 3 F.27-100s are delivered in the spring of 1961, followed by 2 additional Viscount 744s.
A Vickers Viscount 744 with 5 crew and 44 passengers must be written off following a hard landing at Itami Airport on June 12; there are no fatalities.
Based at Osaka, F.27-100s enter service on July 10 on routes to Okayama and Fukuyama. On September 23, scheduled frequencies are initiated from Kagoshima to Naha, on the U. S.-administered island of Okinawa. Passenger enplanements are reported at 1,866,870.
The fleet in 1962 comprises 11 DC-3s, 5 CV-440s, 6 DH 114s, 5 Viscount 744s, and 3 F.27s. A period of cooperation with Hiroshima-based Toa Airways Company, Ltd. begins on August 22 when the two companies sign marketing agreements. ANA also inks similar arrangement documents with Naka Nihon Koku (Central Japan Airlines Company, Ltd.) of Nagoya on September 15 and Nagasaki Airlines Company, Ltd. two days later.
On November 19 training flight, a Vickers Viscount 828 with four crew crashes near Nagoya; there are no survivors.
Three Viscount 828s and 15 F.27-100s are acquired in 1963; orders are placed for Nihon YS-11s. Seeking under the Japan Air Lines Law of 1953 to become the nation’s preeminent domestic trunk line operator, the carrier begins to takeover or influence the nation’s smaller operators, turning the survivors into feeders. The process is begun on February 11 with the transfer of its Hiroshima fringe routes to Toa Airways Company, Ltd.
A DC-3 is lost at Sendai under unknown circumstances on May 10. Tokyo-based Fujita Airlines, Ltd. is purchased and merged on August 31. The thin routes out of Fukuoka are transferred to Toa Airways Company, Ltd. on October 16.
The workforce totals 2,086 in 1964. The last DC-3 is retired on March 15. The carrier’s first jetliner, a leased Boeing 727-181, enters service on May 25 over the Tokyo to Sapporo route. The carrier’s lesser routes out of Osaka are given over to Toa Airways Company, Ltd. on June 15. By the end of July, the Boeing trijet has proven so popular that it has performed 320 flights and suffers only two delays, both weather-related. Additional 727s are requested, also on charter from their manufacturer.
Flights to Yonago commence on August 1 and the prototype Nihon YS-11 transports the Olympic flame from Naha on Okinawa to Tokyo on September 9, stopping at several ANA stations en route.
A YS-11-111 with 5 crew and 45 passengers crashes while on initial approach to Matsuyama Airport on November 13; there are no survivors.
The last CV-440 is retired on November 30 and the 25th F.27-100 enters service on December 8. Bookings this year total 2,112,000.
The scheduled services of Naka Nihon Koku (Central Japan Airlines Company, Ltd.) are taken over on January 25, 1965. The first Viscount 828s enter service in March and the fleet now comprises 41 aircraft, including several more B-727-181s delivered during the year. In July, ANA becomes Japan’s (and the world’s) third operator of the Nihon YS-11, the first postwar commercial transport to be designed and manufactured in Nippon. The company nicknames the aircraft type the Olympian and places it into service on the Osaka-Kochi route on September 20.
The Tokyo-Osaka route is flown exclusively by B-727-181s as of October 1. The employee population grows to 2,423 this year and a total of 2,601,814 passengers are carried.
Coming in from Chitose on February 4, 1966, Flight 60, a B-727-81 with 7 crew and 126 passengers, crashes into Tokyo Bay 12 km. ESE of Haneda Airport and sinks; there are no survivors from the worst singleplane tragedy in commercial aviation history to date.
Holiday flights to Miyakejima commence on March 4 and Fukui joins the route network on July 1. A YS-11 crashes into the sea while attempting to land at Matsuyama Airport on November 13 (50 dead). The last CV-440s/DC-3s are retired as additional B-727-181s join the fleet later in the year. Bookings drop to 2,268,000.
Airline employment in 1967 is 2,740. The fleet now comprises 1 DH 114, 6 YS-11s, 7 B-727-181s, 8 Viscount 828s, and 25 F.27s; orders are placed for 11 more YS-11s and 5 B-737-181s. Accepting responsibility for the previous year’s disasters, President Kaheita Okazaki resigns on April 22.
In July, the company assumes responsibilities for the route from Mi-nami Daito to Yonaguni via Naha, Kunejima, Miyako, and Ishigaki, which had been operated for four years by Scheduled Air Services, Ryukyus (SASR), a subsidiary of the U. S. CIA’s proprietary company, Pacific Corporation.
A route begins to Tottori on August 1 and Nagasaki Airways, Ltd. is purchased on December 1. Enplanements rebound to 2,697,968.
The workforce is increased in 1968 to 3,207. In February, a department is established to prepare for international services; it will lay the foundations for ANA’s debut in the international market place. One B-727-181 and 2 YS-11As are added.
Passenger boardings increase 30% to 3,927,601 and freight traffic skyrockets 302%.
Nagoya to Shirahama frequencies commence on March 1, 1969. Two B-737-214s are leased from the U. S. local service operator Pacific Southwest Airlines (PSA) in April and the first 2 owned B-737-281s are delivered in May. The first of the 11-ship order of YS-11As are also delivered. The PSA Boeings are employed, beginning on June 20, over the routes from Tokyo to Fukuoka via Osaka. The B-727-281s enter service on October 1.
A YS-11A with 4 crew and 49 passengers is destroyed as the result of a bad landing at Miyazaki Airport on October 20; there are no fatalities.
A short-lived pilots strike begins on December 12.
Enplanements jump to 4,484,000 as, at decade’s end, almost all large-and medium-sized cities are served. Since 1960, passenger boardings have grown at an annual rate of 30% to 60%.
The payroll is up 28% in 1970 to 5,031 personnel. The fleet stands at 52 aircraft, including 2 additional B-727-181s, 8 B-737-281s, and 17 YS-11As delivered throughout the year.
The company operates its first international charter services on July 15 and 31, respectively, as YS-11s fly to Pusan, South Korea.
Intent upon suicide, a lone assailant, armed with what turns out to be a toy pistol, commandeers a B-727-181 en route from Nagoya to Sapporo on August 19. The pirate demands that the trijet land at a military base and that a rifle and ammunition be awaiting him when the aircraft arrives. A successful effort to distract the man occurs on the ground when a woman feigns labor pains; in the confusion, the hijacker is taken in hand by police. He will be tried and given a seven-year prison sentence.
ANA Trading Company, Ltd. is established on October 1 and, five days later, Yokohama Airlines Company, Ltd. is purchased and merged. In November, subsequent to the government’s Civil Aviation Constitution of 1970, the possibility of offering short-haul international affinity charters on a regular basis is opened to ANA for the first time.
Cargo accelerates 12.57% and passenger boardings soar 41% to 7.6 million. As the new decade begins, the carrier, in terms of enplanements, is the world’s ninth largest carrier. Its fleet is 22nd in size.
With 109 passengers boarded, a B-727-181 operates the carrier’s first international affinity charter on February 21,1971, from Tokyo to Hong Kong. Later converted to firm orders, the company, in March, takes 6 Lockheed L-1011 TriStar 1s on option.
Just after takeoff from Tokyo on May 13 for a scheduled flight to Sendai, a YS-11A is captured by a lone assailant, who orders the plane to return to its point of origin. On the ground, the pirate meekly surrenders to police.
En route from Sapporo to Tokyo on July 30, Flight 58, a B-727-281 with 7 crew and 155 passengers, collides with a JADF F-86F Sabrejet over Morioka, Iwate Prefecture, 385 mi. NW of the capital city. Both planes crash, however, the fighter pilot is able to safely eject; all aboard the jetliner perish.
Incidentally, two of the six DC-10s that would have come to ANA are sold to other carriers —American Airlines and THY (Turk Hava
Yollari, A. O.) — and suffer near-fatal (AA) or fatal (THY) accidents with them.
The first affinity group charter to Thailand from Nagoya to Bangkok is operated on August 3. In late October, the carrier begins flying skiers from Tokyo (HAD) to resorts on Hokkaido. Enplanements this year swell to 8,065,940.
Charter flights are begun to the Chinese cities of Peking and Shanghai in 1972. The company in July records the first month during which it has transported a million passengers. Airline employment is now 6,331. The fleet is increased by 8 B-727-281s, 10 B-737-281s, and 6 Piper PA-31-310 Navajos.
Eight F.27-100s are sold as orders are placed on October 30 for 6 Lockheed L-1011 TriStar 1s. The Mitsui Corporation has originally ordered 6 Douglas DC-10-10s to lease to the airline, but in a startling about-face that will later lead to a government-rattling bribery scandal, the company chooses the competing wide-body instead.
Passenger boardings this year jump 17% to 9,718,000 while freight traffic doubles.
The last F.27s are disposed of in January 1973 as the TriStar order is confirmed, together with 15 options. International charter services, now including Inclusive Tour Charters, increase by 102%. Kumamoto to Bangkok charters begin on March 31. New services initiated include Fukuoka-Okinawa, Miyazaki-Kumamoto, Tokyo-Omura, and Omura-Kagoshima.
Charter service to Khabarovsk is launched and a variety of computerized systems are installed. The hotel subsidiary ANA Enterprises Co., Ltd. is established in November and the first L-1011 TriStar 1 is delivered on December 18.
Passenger bookings are up 37% to 13,313,660 and cargo traffic climbs by 41%.
The workforce reaches 8,568 in 1974. A 10-year, $70-million noise abatement program is announced. Six more L-1011 TriStars will be delivered through December. The subsidiary All Nippon Helicopter Company, Ltd. is created and provided with a fleet that includes 1 YS-11A, 2 Sikorsky S-61Ns, and 1 Bell 206B JetRanger.
In March, Air Nippon Co., Ltd. (ANK) is established as a domestic subsidiary, providing feed from regional destinations and linking remote islands to the mainland. Also in March, the carrier’s first Lockheed L-1011 TriStar 1 is introduced on the Tokyo to Okinawa frequencies. The last B-727-181 is retired on May 9 and, after July 20, L-1011s are placed on the Tokyo to Okinawa, Sapporo, and Kagoshima frequencies.
Passenger traffic accelerates 10% to 13,820,000 passengers carried, but freight dips 2%.
The employee population in 1975 is 9,017. Continuing from the previous year, three new computerized systems come on line, including one for flight operations planning, one for the processing of flight information, and a digital flight data recorder to provide data analysis. The carrier’s Okinawa Harbor View Hotel opens in June.
In association with Okinawa Marine Expo, YS-11 service is inaugurated on July 20 to Amami-O-Shima and Il Shima.
A youth, claiming to have a knife, takes over an L-1011 en route from Tokyo to Hokkaido on July 28, forcing it to return to its point of origin. On the ground, the young man is overpowered by crew members and nearby passengers.
Seven additional TriStars are added and new services are initiated Kumamato-Okinawa, Tokyo-Kushiro, Matsuyama-Okinawa, and Fukuoka-Tsushima, the latter city-pair on October 1.
Cargo grows 25.9% and passenger boardings inch upward another 3% to 13,839,000.
The employee number rises 1.5% in 1976 to 8,911. Four more L-1011s are acquired, but on July 4 the 1972 Lockheed arrangement becomes a huge public scandal. Prime Minister Kakuei Tanaka is arrested on July 27 and promptly resigns his office; he is indicted at Tokyo on August 16 for allegedly accepting $1.6 million in bribes from Lockheed Aircraft Corporation to arrange the sale of the TriStars to ANA. Hearings before the U. S. Securities and Exchange Commission and U. S. Senate reveal the scandal to have been executed on a worldwide basis; however, ANA is shown to have been largely required to accept the airliners provided for it by Mitsui.
The company’s one hundred-millionth passenger (cumulative) is boarded on September 6. On December 17, Tokuji Wakasa becomes chairman and Masamichi Anzaj, president.
Passenger bookings rise 7.4% this year to 14,883,797 and freight jumps 13.1% to 70.3 million FTKs.
Three more TriStars are delivered in 1977 as 11 B-747SR-81s and 6 B-737-281s are ordered.
En route from Sapporo to Sendai on March 17, Flight 817, a B-727-281 with 180 passengers, is taken over by a lone gunman, who orders the aircraft to return to its point of origin. As it prepares to land at Tokyo, the assailant slips into a restroom, takes poison, and dies.
The carrier operates its first nonscheduled charter flights from Tokyo to Indonesia beginning on October 30.
Enplanements this year soar to 17,547,818.
Airline employment is increased 7% in 1978 to 9,822. Three B-727-281s and 1 YS-11A are placed in service during the year, and the first B-747-181B/SR or B-747SR is delivered on December 20, followed by another next day. The carrier is now owned by the Nagoya Railroad, Japan Air Lines Company, Ltd. (2), the Tokyo Corporation, and the Tokyo Marine and Fire Insurance Company.
On September 21, the carrier joins with the steamship companies of Mitsui-NYI, Nihon Yusen, Kawasaki, and Yamashita to create Nippon Cargo Airlines Co., Ltd., a charter operation. ANA World Tours Co., Ltd. is established on September 28. On November 16, Nippon Cargo applies for scheduled all-cargo operating authority.
Passenger traffic for the world’s sixth largest airline increases 10.2% to 19,541,000 passengers carried and cargo swells 28.5%. Revenues rise 11.5% to $1.27 billion and expenses grow 15.2% to $1.22 billion. The operating profit falls 38.2% to $49 million and the net income dips 16.2% to $56.4 million.
Airline employment grows by 6% in 1979 to 10,413. B-747SR-81 service begins with the lead plane flying from Tokyo to Sapporo and Fukuoka in January. Three additional short-haul Jumbojets join Chairman Wakasa’s fleet on February 28, September 5, and October 9, respectively, and orders are placed for 25 B-767-281s, with options for 15 more. Charters, meanwhile, are flown to Beijing from Sendai, Oita, and Kagoshima in August-October.
Rocks from Sakura Jima crack the windshields of two jetliners flying over the volcano on November 18.
Passenger boardings jump 15.8% to 22.7 million and freight advances 26.4%. Due to increased fuel costs, losses are significant: $39.5 million (operating) and $45.6 million (net).
The workforce is increased 3.7% in 1980 to 10,801. Six additional B-747SR-81s join a fleet that also includes 5 short-range Jumbojets, 22 B-727-281s, 28 YS-11As, 21 L-1011s, and 15 B-737-281s. The carrier’s longest route, the 2,051-km. Sendai-Okinawa segment is opened.
Cargo grows 10.2% to 148 million FTKs and passenger bookings incline upward a slim 0.3% to 22.8 million. On revenues of $1.7 billion, expenses are $1.72 billion, leaving an operating loss of $14.4 million; still, a net $13.5-million profit is earned.
The workforce grows only 0.8% in 1981 to 10,892. Two more B-747SR-81s arrive on January 16 and February 15 and, in July, Japan’s domestic airline boards its two hundred-millionth passenger since 1953. Cost-saving measures now implemented include the retirement of 1 L-1011, 9 B-727-281s, and plans are made for further reductions.
In October the company celebrates the tenth anniversary of its Ski Charters to Hokkaido, with the Peanuts cartoon character Snoopy chosen as mascot. Two short-range Jumbojets arrive on December 17 in a rare double delivery.
Passenger boardings increase 3.4% to 23.56 million and cargo is up 14.9% to 170.21 million FTKs. Revenues dip to $1.61 billion and expenses are $1.626 billion, leaving an operating loss of $14.1 million, but a net profit of $8.8 million.
The workforce is decreased 2.2% in 1982 to 10,665. Vice president-maintenance and engineering Ioshiyuki Funatsu is named executive vice president and 2 B-747SR-81s arrive, 1 each on June 17 and November 12. At year’s end, the carrier’s livery is changed.
Passenger bookings decline 3.8% to 22,632,000, but freight grows 7.6% to 170.24 million FTKs. Revenues total $1.77 billion, a 6.5% boost, and expenses decline to $1.73 billion, thus allowing an operating profit of $44 million and a net profit of $30 million.
The employee population loses only 31 members in 1983. Taizo Nakamura is appointed president and 6 of the 25 ordered B-767-281s join the fleet, painted in the new livery adopted at the end of the previous year. These enter service on the routes from Matsuyama to Tokyo and Osaka on June 21.
An international charter service is started to Guam and a total of 364 nonscheduled flights are made to various destinations.
Passenger boardings dip another 2.4% to 22,088,000, but cargo rises again, up 6.3% to 191.77 million FTKs. On revenues of $1.9 billion, the operating profit accelerates to $43.3 million and the net profit to $30.5 million.
The workforce is up 1.9% in 1984 to 10,783. Seven additional B-767-281s are received, bringing the fleet total to 13 B-767-281s, 17 B-747SR-81s, 17 L-1011s, 12 B-727-281s, 14 B-737-281s, and 19 YS-11As. The company sells 6 of its Lockheeds to Boeing on March 1 for $8.6 million and then agrees to lease them back for 15 months. The one millionth charter passenger (cumulative) is boarded on August 24.
Passenger enplanements ascent 8.5% to 23,972,000 and freight climbs 11.4% to 199.17 million FTKs. Revenues decline 2.3% to $1.8 billion; profits are, respectively, $43.3 million (operating) and $35.7 million (net).
The workforce is increased 1.9% in 1985 to 10,851. The charter season starts on April 1; fewer of the 342 total flights will be made on short-haul routes (e. g., Hong Kong) and more to such farther destinations as Singapore and China. Nippon Cargo Airlines, Ltd. B-747F flights Tokyo-San Francisco also commence in April. Orders are placed for 2 B-747-481s and 10 B-767-381s as the number of B-767-281s delivered is increased to 21 and 6 L-1011s are sold.
First-class service is introduced on domestic flights during July. On September 24, a B-747SR-81 charter flies Nagoya-Perth, the first time the carrier operates to Australia.
In December, the government opens international operations to all of the country’s airlines by revising its air transport policy and deregulating the industry; domestic service is also opened to competition.
Traffic is severely impacted by the August Japan Air Lines Company, Ltd. (2) crash; on the year, passenger boardings rise only 1.3% to 24,282,000 and freight traffic climbs 8.3% to 215.19 million FTKs. The carrier retains its ranking as the world’s 6th largest airline in terms of passengers carried; it is 18th in total fleet size and 15th in total rev-enues/operating profit. Revenues dip 1.8% to $1.8 billion; the operating profit is $76.7 million and the net gain is $30 million.
Employment rises 11.1% in 1986 to 11,498. In January, orders are placed for 15 B-767-381s (with 10 options) to replace the B-727-281s/ L-1011s over the next 7 years.
An application for scheduled L-1011 service from Tokyo (NRT) to Guam is approved in February; the route is opened four times a week on March 3, the first scheduled international service by a Japanese airline other than Japan Air Lines Company, Ltd. (2). In the same month, the B-747-481 order is increased to three. In May, 20% weekend discount domestic fares are introduced.
Transpacific B-747-281LR service to Los Angeles from Tokyo (NRT) begins on July 16 and the first capital-to-capital nonstop scheduled service between Japan and the U. S. starts on July 26 with a Jumbojet service from Tokyo (NRT) to Washington, D. C. (IAD).
During the year, the carrier adds 4 B-767-281s and 3 B-747-281LRs (B-747LRs); in December, it places a $1-billion order for 10 Airbus Industrie A320-200s, with 10 options. A Gold Pass frequent flyer program is inaugurated to the American market on December 31. Customer bookings slant upward a scant 1% to 24,503,000 while cargo does better, climbing 7% to 230.78 million FTKs.
The payroll is increased by 4.4% in 1987 to 12,004 and Akio Kondo becomes president. In April, ANA begins scheduled services to Asia, with flights to Beijing and Dalian.
Company unions joins those from Japan Air Lines Company, Ltd. (2) and Air Nippon Company, Ltd. in a 48-hour strike on April 22-23 as labor and management negotiations on annual wage hikes collapse. Officials report that the job actions are the first for JAL in two years and the first for ANA in eight. Nearly half of domestic and international services are cancelled on the two days.
The sophisticated ABLE computer reservation service comes on line in May. The same month, the weekly nonstop service from Tokyo to Los Angles is increased from five to seven flights while that to Washington, D. C. grows from three flights to four. A fourth B-747LR is acquired on July 13 and a scheduled four-times-per-week route is opened to Hong Kong’s Kai Tak Airport, also in July.
Tragedy occurs on August 11, just after a B-747-281B with 335 passengers, arrives at Washington, D. C. (lAD). The boarding step is placed about one foot away from the aircraft rather than against it. When the flight attendant opens the L5 door, she falls through the open doorway to the ground 20 feet below and is killed.
The first of 15 B-737-381s are delivered, also in August, the same month in which the first charter service to New York City is flown. B-747LR Tokyo to Sydney operations begin in late October, the first time that ANA has operated a regular service across the equator.
Passenger boardings rise 5.8% to 25,930,000 and freight pushes ahead by 36.1% to 330.3 million FTKs. Revenues climb 3.1% to $3.29 billion and with costs held down, operating income of $178.2 million is generated along with net gain of $38.3 million.
Airline employment grows a further 1.7% in 1988 to 12,214 as an arrangement is worked out with Command Airways to offer ANA passengers free connecting service between Washington D. C. (lAD) and New York. The number of nonstops between Washington and Tokyo is increased to five per week at the end of March, while the number of Command connecting flights reaches the same number. Simultaneously, a second Tokyo to Sydney nonstop frequency is begun. In May, a new $384-million ABLE computer center is opened near Tokyo (HAD) to house the company’s domestic and international computerized reservations system.
Daily Tokyo to Hong Kong and Guam flights commence on June 1 and three-times-per-week flights are inaugurated to Beijing. The number of weekly flights to Beijing is increased to five in July; five-times-per-week Tokyo to Seoul B-767-281 flights commence in September. A 3.5% minority interest is acquired in Austrian Airlines, A. G. Full control is taken of the consortium subsidiary Nihon Kinkyori Airways, Ltd. and its name is changed to Air Nippon, Ltd.
Customer bookings rise 4.7% to 27,157,000 (736,631 international) and cargo is up by 23.2% to 406.91 million FTKs. Revenues continue their skyward thrust, reaching up 28% to $4.2 billion. Operating income swells to $262.4 million while net gain reaches $47.9 million.
The payroll is cut a slight 0.2% in 1989 to 12,193 and the fleet now includes 102 transports, many of which are Jumbojets. The carrier joins IATA on January 1 and now offers 468 flights per day, all but 10 of which are over a domestic route system that serves 31 stations. Also in January, a contract is signed with Trans World Airlines (TWA) under which the American major begins to provide B-727-200 connecting service for ANA passengers between Washington, D. C. (lAD) and New York (LGA).
Continuing its rapid expansion, ANA adds a third region, Europe, to its international network. A letter of intent is signed with SAS (Scandinavian Airlines System) in February for the initiation of a jointly operated roundtrip service twice weekly, via the North Pole, from Tokyo to Stockholm.
On April 5, it is reported that the carrier will join with five other airlines in a Southeast Asian computerized reservations system. ANA, Cathay Pacific Airways (Pty.), Ltd., Singapore Airlines, Ltd., China Airlines, Ltd. (CAL), Malaysia Airlines, Ltd. (MAS), and Philippine Airlines (PAL) will not only be able to make reservations and issue tickets but make arrangements as well for car and hotel reservations.
The joint service to Stockholm is inaugurated in April. The same month the airline purchases 3.5% shareholding (77,000 shares) in Austrian Airlines, A. G.
As the result of an opening of slots at Tokyo (HAD) by the Ministry of Transport on May 17, ANA is able to inaugurate thrice-weekly B-747-281LR service on July 20 to London (LGW). Two of the flights are direct and one goes via Moscow. Incentives offered to travelers on the new services include free limousine service within 40 miles of Gatwick Airport or a free train ticket to London’s Victoria rail station.
Bangkok also joins the route network during the month, along with London (LGW) once per week via Moscow. A joint service to Vienna is simultaneously opened in association with new partner Austrian Airlines, A. G. and Aeroflot Soviet Airlines; twice-weekly services, employing the Austrian A310-324, are inaugurated linking Tokyo via Moscow. The Airbus service is operated with Austrian flight deck crews and mixed cabin crews, with costs and revenues divided 40-40-20 between ANA, Austrian, and Aeroflot.
Flights also begin, twice weekly to Saipan, in November. Orders are outstanding for 26 B-747-481s, 20 A320-200s, and 30 B-767-381s.
Passenger boardings jump 9.3% to 29,693,287 and freight moves ahead by 16.1% to 472.24 million FTKs. Revenues ascend 9.5% to $3.97 billion and profits of $212.6 million (operating) and $50.9 million (net) are generated.
Company employment grows 3.5% in 1990 to 12,617. Service between Tokyo and Saipan is doubled in January to four weekly frequencies. Also during the month, the company receives the 1989 “Market Development Award” from Air Transport World magazine.
The subsidiary World Air Network Company, Ltd. (WAC) is founded in March to offer charter flights to southeast Asia from smaller Japanese cities; this is the first such international charter company in Japan. The new entrant is based at Singapore to avoid Japan’s bottlenecked airports; Australian pilots are hired and flights begin with a single B-767-281ER leased from ANA.
On April 2, the carrier, together with Japan Air Lines Company, Ltd. (2), begins direct nonstop trans-Siberian flights between Tokyo and Madrid and Tokyo and Stockholm five times a week. These passenger flights will no longer stop in Anchorage.
When Austrian Airlines, A. G. undergoes another round of privatization in April, ANA raises its shareholding from 3.5% to 5%. At the same time and in response to a significant demand by Japanese tourists and businessmen for flights to Eastern Europe, ANA begins to link its Vienna service to Austrian’s extensive route network into the east. The airline’s last B-727-281, JA8355, completes its final service under the command of 20-year veteran trimotor Capt. Toshio Ishikawa late in the month and is retired with a gala party at a hangar at Tokyo (HAD). It is the last of 45 Boeings employed since 1964 to fly over 100 million passengers around the island nation.
In May, Austrian Airlines, A. G. issues another 400,000 shares of stock at $358 per share and ANA increases its interest to 9%, paying $65 million for an additional 157,000 shares, which brings its stake in the European airline to 234,000 shares. In May, an initial agreement is concluded with USAir for a block-seat purchase and connecting service on three weekly flights between Washington, D. C. (IAD) and Orlando. Reciprocal frequent flyer program participation is also planned.
The first of 43 B-747-481s on order is delivered at the end of August and, in cooperation with SAS (Scandinavian Airline System), begins alternating nonstop service in September between Tokyo and Stockholm via the U. S.S. R.; the new routing cuts 6.5 hrs. from the previous service flown via Anchorage. In October, twice-weekly B-747-281LR services are started to Paris. Cooperative agreements are signed with Sabena Belgian World Airlines, S. A. and Malaysian Airlines, Ltd. (MAS). The first B-747-481 “Techno Jumbo” is introduced on domestic routes in November. The carrier’s international computerized reservations system, INFINI, goes on line as a joint venture with the consortium ABACUS. The USAir agreement goes into effect in December.
Customer bookings accelerate 11.3% to 33,048,000 and cargo climbs 12.8% to 532.75 million FTKs. In terms of passenger numbers, ANA is now Japan’s largest airline as well as the 8th largest in the world and its 106-unit fleet is the 19th largest.
Airline employment grows by 4.2% in 1991 to 13,117 and the fleet increases by 14 aircraft. The first of 13 A320-211s on order is delivered in January. Also during the month, ANA receives the 1990 “Passenger Service Award” from Air Transport World magazine.
Doubling the number of its joint operations with international airlines, ANA, during January-February, commences operations to Brussels and Kuala Lumpur. The former service is flown with Sabena Belgian World Airlines, S. A., employing the Belgian line’s B-747-329C, from Tokyo via Moscow and Siberia. Flights begin to overseas destinations from regional Japanese cities during the month, beginning with a joint Nagoya to Kuala Lumpur service operated with Malaysian Airlines, Ltd. (MAS), employing the Malaysian airline’s DC-10-30. The first European hotel is opened at Vienna.
Club ANA business-class service is launched with the B-747-481 in March as the “Techno Jumbo” begins international service to Washington, D. C. (lAD). Tokyo to New York B-747-481 thrice-weekly flights begin on March 9 while, at the same time, the Airbus Industrie A320-211s are introduced on domestic routes. A Tokyo-Moscow-Paris route is opened on April 7. Construction is begun on an International Flight Training Academy at Bakersfield (California) in June. The charter subsidiary World Air Network Charter (WAC) begins nonscheduled holiday flights from its Singapore base in March with a dedicated B-767-381ER leased from its parent.
U. K. operations are transferred from Gatwick Airport on July 1 as company B-747-481s begin flying into London (LHR) from Tokyo thrice weekly. Having taken delivery of its 46th B-767 in July, ANA is now the world’s largest operator of the type.
Company shares begin trading on the London Stock Exchange in August, the same month Fukuoka to Bangkok service is initiated. Tokyo to London frequencies are increased from three to five per week at month’s end. Also at this time the decision is taken to postpone the creation of a domestic all-cargo airline.
Former transport ministry official Takaya Sugiura is named chairman in August, succeeding Tokuji Wakasa, who remains as honorary chairman. Also in August, daily nonstop connecting service is started between Washington, D. C. (lAD) and Orlando in conjunction with USAir and its B-737-300s. Thrice-weekly roundtrip Nagoya to Honolulu flights begin in September, along with Hiroshima to Seoul and Nanta to Berlin service. At the same time, the airline begins to make available a two-part, in-flight audio program designed to teach Japanese to American passengers and English to Japanese.
During the first week of October, an agreement is signed making Air Canada, Ltd. ANA’s general sales agent in Canada. A new B-747-481 is simultaneously employed to increase frequencies on the New York run from three to five per week. After a lengthy waiting period, twice-weekly B-767-381ER roundtrip Tokyo to Singapore service is finally opened on December 3.
Passenger boardings also increase by 4.2%, to 34,438,000 while freight rises 10.3% to 586.01 million FTKs. Revenues are $5.2 billion and with costs down, the operating profit is $179.6 million and net gain totals $75.8 million.
The payroll grows 4.5% in 1992 to 14,288. Customized for domestic use, the company’s first B-747-481D, delivered in January, enters service on the routes from Tokyo to Sapporo and Nagasaki in February. Fukuoka-Dalian service is launched in April. A 13.5% interest is acquired in the ABACUS computerized reservations system and a hotel is opened at Beijing.
In an effort to slow a fiscal hemorrhage, the airline during the summer temporarily withdraws from its joint services with Austrian Airlines, A. G., Aeroflot Russian International Airlines, Sabena Belgian World Airlines, S. A., Malaysian Airlines, Ltd. (MAS), and SAS (Scandinavian Airline System).
The opening of Tokyo to Frankfurt service, scheduled for October, is postponed. ANA pilots begin training at the newly occupied International Flight Training Academy in California during November. At the same time, a new alliance is signed with USAir providing one stop service from Charlotte, North Carolina to Tokyo via Washington, D. C.; the American airline operates six weekly connecting flights between the North Carolina city and Washington, D. C. (lAD) timed to catch the ANA morning flight. Five-times-per-week service is also launched between Orlando and New York (JFK) as ANA begins to participate in US-Air’s frequent flyer program.
On December 20, the carrier launches a contest for the design of a full-fuselage aircraft promotional painting to be created by a Japanese student under the age of 15.
A total of 34,856,606 passengers are carried, a 1.6% boost and, in terms of passengers carried, ANA now ranks as the world’s seventh largest airline. Freight traffic increases 8.4% to 635.62 million FTKs. On revenues of $6.147 billion, expenses are $4.525 billion; profits are $301 million operating and $20.8 million (net).
Airline employment in 1993 rises 3.6% to 14,800.
The carrier’s first non-Japanese pilots (hired from Ansett Worldwide Wet Lease) begin flying the Tokyo to Sydney route in February. At the same time, weekly B-747-281B Tokyo to Frankfurt service is inaugurated.
Flights are suspended in March between Nagoya and Honolulu and Kuala Lumpur and Fukuoka and Bangkok. New service is opened from Tokyo to Shanghai.
Hoping to compete with discount travel agents for customers, the airline now begins to introduce more services for passengers paying full fare for economy-class tickets on international flights. In March, a number of first-class services are extended to full-fare economy ticket holders. For example, Yuttari Service (personal space) is introduced on routes to London, Paris, Frankfurt, and New York from Tokyo (NRT). The areas around each seat are enlarged and customers are provided with footrest cushions and slippers.
In-flight meals are upgraded in April. Flights to Stockholm are suspended in May.
In May, 12-year-old Yukie Obgaki’s design of a whale is chosen from 20,110 entries as the winner of the previous year’s promotional contest. A B-747-481 painted in that pattern instead of the usual ANA livery is accepted at Seattle in July. Marine Jumbo as it is called makes its first domestic flight on September 12 from Tokyo to Sapporo. A B-767-381 is also painted in the marine motif; Marine Jumbo Jr. is delivered on December 4 and is placed into service over the Tokyo to Toyama route on December 13.
During the year, the carrier moves into the new west terminal at its Tokyo hub.
As a result of the national recession, customer bookings slide 4% to 33,722,009. Cargo, however, swells 11.7% to 700.14 million FTKs. Revenues decline 4.9% to $7.28 billion and a $27.19-million net loss is suffered atop operating income of $62.47 million. Still, the company is able to pay a small dividend.
In 1994 the workforce is cut by 6.8% to 13,800. In February, a joint agreement is signed with Japan Air Lines Company, Ltd. (2) for the purchase and repair of aircraft parts, shared hangars, engine test cells, and development of technical and training manuals for the Boeing 777, which both will acquire.
A $136-million savings is realized in March through the sale and leaseback of 4 B-767-281s and 2 B-747-481s. Also in March, as part of a general route-restructuring plan, thrice-weekly roundtrips between Nagoya and Honolulu are suspended.
During the spring, Katuaki Kumagae, managing director of All Nippon Helicopter Company, Ltd., reports a fleet comprising 2 Eurocopter AS-365N2 Dauphin IIs and 8 AS-355F2s. On June 18, it is announced that ANA and Delta Air Lines will forge a marketing alliance that could pave the way for the American major to fly to more Asian cities and for the Japanese line to increase its service in the U. S.
Although provisions for reciprocal ground handling in Japan, New York, and Los Angeles are implemented, code-sharing and blocked space arrangements for 13 weekly flights between Los Angeles and Tokyo will be held up by the U. S. and Japanese governments, which are involved in negotiating new bilateral air agreements.
In cooperation with Air Canada, Ltd., a general sales agency is opened in Canada during August. Discussions begin on a strategic alliance that will include code-sharing, joint marketing, and reciprocal frequent flyer club participation. Meanwhile, the company begins to offer dual-designator or block-space flights with Delta Air Lines from Osaka to Honolulu and New York (ANA) and to Portland, Oregon (Delta).
Daily service is inaugurated in September from the new Kansai International Airport to Seoul, Singapore, and the northeast Chinese port city of Tsingtao. The route from Fukuoka to Beijing via Dalian is also expanded, with the departure point shifted to Osaka (KIX). The B-747-481 service to New York from Tokyo (NRT) becomes daily. On September 4, both Marine Jumbo and Marine Jumbo Jr. are present for an air show at Komatsu Air Base; the two uniquely painted Boeing aircraft are viewed by over 100,000 people.
Additional expansion from Osaka (KIX) occurs in October. Twenty-nine new daily departures are made to 13 Japanese cities. In addition, B-767-381ER flights commence thrice weekly to Hong Kong and Sydney via Brisbane.
As the result of difficulties between governments, plans to service Ho Chi Minh City are put on the shelf. Plans are, however, made to initiate services from Osaka (KIX) to Honolulu, Bangkok, Shanghai, Beijing, and Kuala Lumpur during the new year. Also planned is the commencement of operation for 3 of 18 new B-777-281s, the first of which is due for delivery the following October.
The joint service with Austrian Airlines, A. G. is resumed, minus the Aeroflot Russian International Airlines partner, with Austrian aircraft thrice weekly from Osaka (KIX) to Vienna and twice weekly from Tokyo (NRT) to Vienna. In addition, ANA aircraft operate a weekly code-shared Tokyo (NRT) to Vienna service.
In November, work begins at Tokyo (HAD) on a new maintenance dock and engine test cell for B-777s. At year’s end, company officials must face the unhappy public relations prospect of ending their expensive but extremely popular 15-month-old marketing scheme with Marine Jumbo and Marine Jumbo Jr.
Beginning in December, in-flight meals on ANA long-haul flights from Tokyo (NRT) serve only organically grown vegetables purchased from farms around the airport.
On the year, passenger boardings continue to fall, down to 34,457,000. As in the previous 12 months, freight grows by 10.4% to 773.03 million FTKs. Revenues move ahead by 3.6% to $8.98 billion, while expenses increase only 2.3% to $8.8 billion. Operating income increases to $179.92 million, while a $49.43-million net gain is celebrated.
Fulltime airline employment in 1995 stands at 14,109, a 1.1% decline, as the company becomes launch customer for the B-777-381 with an order of 10. The devastating earthquake at Kobe in mid-January brings a demand for additional air capacity as the carrier attempts to transport citizens who would normally employ roadways or rail transit. Having added an 15 extra flights on January 20, the company lays on 113 more special flights over the next four days. Meanwhile, the West Japan Railway Co., Ltd. reports that it will take $1.6 billion and four months to restore rail lines in and around the devastated city.
The announced February deadline for repainting the “Marine Jumbos” is extended to the end of May.
During the spring, new routes are opened from the new Kensai Airport at Osaka to Bangkok, Kuala Lumpur, Beijing, Shanghai, and Honolulu and services from that aerodrome are increased to Guam, Sydney, Brisbane, and Hong Kong. Frequencies are increased from Tokyo (NRT) to Paris and discussions are held with Delta Air Lines regarding a possible major alliance.
On May 21, the “Marine Jumbos” make special commemorative flights with 300 pairs of parents and children from Tokyo (HAD) and Osaka to Miyazaki, on Kyushu, where the passengers are able to visit a resort and take pleasure flights. Having flown 1.7 million passengers to all of ANA’s domestic markets, the two aircraft are withdrawn on May 22 and May 31, respectively, and are sent to be repainted into regular ANA colors. The expensive, one-year-plus program had been a very effective promotion.
Bank clerk Fumio Kutsumi, a member of the Aum Shinrikyo religious sect, hijacks a B-747-481 with 365 passengers on June 20 following its landing at Hakodate Airport after a flight from Tokyo. The air pirate demands the release of sect leader Shoko Asahar, imprisoned on March 12 in connection with a poison gas attack on the Tokyo subway system. After a 16-hour stand-off, Japanese police, disguised as airport workers, storm the plane, capture the hijacker, and free all hostages; no injuries are reported. Still, ANA must cancel 10 flights from the closed airport and 105 passengers aboard the Jumbojet cancel their trips, forcing the airline to refund their tickets.
Anticipating delivery of the B-777-281, Pratt & Whitney, maker of the plane’s JT9D engines, leases a 10,000-sq.-ft. facility from ANA at Tokyo (NRT) during the spring and opens a power plant parts center. Throughout the summer and into September, the airline hires 240 contract flight attendants, who represent part-time employees not entered upon the company’s permanent payroll. Meanwhile, on August 12, the five hundred-millionth passenger is transported.
The premier B-777-281 is delivered during the first week of October; the usual tail markings are replaced with 777 titles reminiscent of those employed years earlier when Eastern Air Lines introduced its B-757s. Twice-weekly flights commence in October between Osaka (KIX) and London (LHR). The second B-777-281 arrives in November; both machines begin flying from Tokyo in December to Hiroshima, Miyazaki, and Osaka. The final L-1011 TriStar 1 service is flown on November 30 from Kagoshima to Tokyo (HAD).
During the year, a major cost-cutting approach, Program P1521, is announced. Its goal is to cut personnel costs by 20%, increase fleet utilization by 10%, and to boost income 15% within three years.
In December, a general agreement begins with EVA Air, Ltd.; it provides for cooperation on sales, reservations, and ground handling, as well as for crew exchange and code-sharing on a route from Fukuoka to Taipei.
Weekly B-747-281B roundtrips commence on December 22 between Osaka and Rome.
Passenger traffic and profits turn around this year. Customer bookings jump 9.3% to 37,680,422 while cargo increases 21.6% to 940.62 million FTKs. On revenues of $4.32 billion and expenses of $4.09 billion, operating profit climbs to $232.26 million and net gain reaches $63.55 million. The latter figures are later adjusted downward to $220.4 million (operating) and $24.91 million (net).
Employment grows to 14,396 in 1996. The company remains the largest domestic operator in Japan, offering over 500 daily departures over 91 different routes. During the first week of February, ANA joins with American Airlines, Delta Air Lines, and Continental Airlines in calling for renewed bilateral discussions between the U. S. and Japan. Hopes are expressed by President/CEO Seiji Fukatsu that operations originally authorized in 1952 will be liberalized for those airlines not original partners to the first bilateral.
In an effort to reach one of the goals of Program P1521, President/ CEO Fukatsu aggressively engages the company’s labor unions, seeking concessions. He also seeks to eliminate those ANA executives closely allied to Honorary Chairman Wakasa and Chairman Sugiura.
Between March 8 and 18, company routes are altered during Chinese military missile exercises off Taiwan; flights to Hong Kong, Bangkok, and other Southeast Asian destinations do not pass over Taipei.
On April 1, as part of a corporate restructuring, pilots salaries are changed to reflect actual hours worked. The flyers and their union are very displeased.
The company’s withdrawn YS-11As are sold to Air Philippines (2) beginning in April. New services are initiated during the month from Niigata to Hakodate, Hiroshima to Hakodate, and Hiroshima to Aomori.
ANA joins with Delta Air Lines in April to announce the inauguration of code-sharing on weekly transpacific flights between Tokyo and Los Angeles. Under terms of their agreement, All Nippon will offer seven flights per week and Delta six.
In late May-early June, China, which has improved its ATC capabilities, grants the airline a more direct routing north to Beijing, Dalian, and Qingdao than the old direction south to Shanghai from Tokyo, Nagoya, and Osaka and then north. The company quickly adjusts and begins to save 35-45 min. per flight. Service from Tokyo and Osaka to the PRC is increased to 40 flights per week; Qingdao and Dalian join the route network.
It is reported on June 1 that a GE CF6-50 engine mounted on one of the company’s B-747-281s has, with 28,888 hours, established an industry on-wing longevity record.
Beginning on June 19, new 83-inch pitch seats allow for full-seat service in first-class sections on the company’s flights from Tokyo to New York.
Also during the month, as deregulation progresses, the company introduces a new domestic fare system that features different ticket prices for normal, peak, and off-peak periods, as well as discount fares. It also starts a new route from Fukuoka to Akita.
The third owned B-777-281 arrives on July 1. With the addition of two new frequencies on July 15, service between Osaka and Hong Kong becomes daily. Hong Kong is the first ANA international destination to be served with daily services from both Tokyo and Osaka and is the airline’s largest volume overseas destination.
Convicted of air piracy on July 20, former bank clerk Fumio Kutsumi is not only sent to prison but is, as part of the judgement against him, billed $487,300 by the airline.
At the end of the month, twice-weekly, nonstop B-767-381 round-trips commence from Osaka to Yangon. At the same time, a new Sendai-Matsuyama service is launched.
Code-sharing flights with Air Canada, Ltd. are initiated between Osaka and Vancouver on August 1. The daily service is the company’s first transpacific route from Osaka (KIX)
On August 21, the carrier reduces its regular season fares by ?500 on nine routes as well as other routes connecting Tokyo, Osaka, and Fukuoka to Okinawa, a total of 18 services. This is to better compete with Japan Air Lines Company, Ltd. (2), who has announced price reductions on similar routes.
On August 29, ANA abandons the joint service with Delta Air Lines, due to commence on September 1, between Tokyo and Los Angeles due to a breakdown in the bilateral air agreement negotiations between the U. S. and Japan.
Direct twice-weekly frequencies are inaugurated on September 5 between Osaka and Bombay, marking the airline’s first service to In-dia. Dual-designator weekly B-747-281B flights with Austrian Airlines, A. G. are launched on September 9 from Osaka to Rome via Milan. Additionally, the carrier’s twice-weekly Jumbojet flights to Rome direct from Osaka will increase to five times a week. Two services will be routed via Milan and two via Frankfurt.
On September 12 sharing codes with Austrian Airlines, A. G., All Nippon inaugurates twice-weekly B-747-281B service from Osaka to Frankfurt. On Thursdays and Fridays, the new flight will be routed from Osaka to Rome and continue on to Frankfurt before returning to Osaka. On Sundays and Wednesdays, the flight is routed in the opposite direction with it leaving Osaka directly for Frankfurt and then on to Rome before returning to Japan.
The new Indian services from Osaka are followed on October 4 by the launch of flights from Tokyo (NRT) to New Delhi via Bangkok.
On October 24, to celebrate the twenty-fifth anniversary of the Hokkaido Ski Campaign, the carrier unveils a B-747-481D painted with Peanuts characters, including a Snoopy on skis on both the nose and tail. Six days later, twice-weekly B-767-381 roundtrips are launched from Tokyo (NRT) to Jakarta, with an extension on to Denpasar. Also during the month, the route from Tokyo (NRT) to Bangkok is extended to Delhi.
The pilots’ union undertakes a partial 24-hour strike on December 16 to protest a salary restructuring that was put into place on April 1. Striking members comprise the entire B-767 cadre, while the remaining 1,397 members report to work as scheduled. ANA is force to cancel 154 domestic flights.
Passenger boardings accelerate 4.1% to 39,377,380 while 1.04 billion freight FTKs are operated, an 11.3% increase. Operating income climbs 4.9% to $7.15 billion, but costs move up only 6.2% to $7 billion. Although operating profit falls to $145.16 million, a larger $31.54-million net profit is posted.
Airline employment inches up 1.3% in 1997 to 14,239. International capacity is boosted almost 25% during the year in an ambitious effort to expand into additional Asian and U. S. markets.
During January, a 177% increase in the number of business-class “superseats” is announced and the service is added to 19 new routes. The boost makes two-class service available on 60% of the carrier’s domestic operations.
Thrice-weekly B-747-281B roundtrips are resumed on February 1 between Nagoya and Honolulu.
Flight 002, a B-747-481, completes the company’s first FANS-1 (Future Air Navigation System) Jumbojet service on February 19, a flight from Tokyo (NRT) to Washington, D. C. (IAD). Thereafter, other tests will be conducted for five months.
In March, the Ministry of Transport announces that ANA will receive nine new slots that will be made available at Tokyo (HAD) following the summer opening of a new runway in March; six must be assigned to specific routes.
On the first of April, ANA agrees to lease 3 B-767s to potential new rival Skymark Airlines Company, Ltd. and maintain them; the new entrant, backed by the HIS Travel group, is scheduled to begin domestic service during the first half of 1998.
Also during the month, Pokemon (Pocket Monster): The Series premiers on Japanese television. Following the adventures of the 151 fanciful characters of the Nintendo “Gameboy” software that boast magical powers, Pokemon will have a significant impact on ANA advertising in the years ahead.
A new Japanese consumption tax put in place during April has an adverse impact on the airline’s economics. During the month, ANA becomes the first Japanese airline to apply its international frequent flyer program to domestic flights. The loyalty program is renamed ANA Mileage Club.
As a result of strong competition from other domestic airlines as well as the bullet train, in early May the company seeking, to save money, drops its service from Tokyo (HAD) to Sendai.
On June 5, in its first service from the newly completed airport at Hiroshima, the company initiates four-times-a-week B-767-381 roundtrips to Guam. The new service complements the existing daily B-747-281B service to the island from Osaka.
Arrangements are completed with the Swiss Bank Corporation in June for the issuance of ?30-billion worth of convertible notes, due in the year 2000; proceeds will be employed to cover aircraft purchases.
A total of 155 domestic flights are cancelled on June 27 by Japan Air System, Ltd., Japan Air Lines Company, Ltd. (2), ANA, Air Nippon Company, Ltd., and Japan Transocean Airways Company, Ltd. as the result of a tropical storm and tornado.
At the end of the month, Tokyo (HAD) commences 24-hour operations, which allows ANA to increase its daily departures by four.
As the company enters the final year of Program P1521, the manner in which President/CEO Fukatsu has sought concessions from the company’s unions brings a major corporate shake-up. When five members of the board, led by Honorary Chairman Wakasa and Chairman Sugiura, express their displeasure with Fukatsu’s tactics, he is forced by honor to resign; the company next announces that ANA Real Estate Co. Presi-dent/CEO Kenzo Yoshikawa will be his successor.
This appointment so angers many on the board that ten members resign, including Sugiura and Wakasa. Stabilization returns when it is announced that Yoshikawa will remain with the real estate company, while the airline’s senior managing director, Kichisaburo Nomura, will take the president’s chair. Former President Fukatsu now becomes the new leader’s advisor; or, as some analysts put it, a “shadow samurai.”
Also during July, the company receives its second B-747-481 equipped with FANS-1 gear; the aircraft is placed on regularly scheduled North American routes. Plans are progressing to equip the entire B-747-481 fleet with FANS by the end of 1999.
After the sixth B-777-281 is delivered in September, service is inaugurated from Tokyo (NRT) to Beijing and Hong Kong. Three more of the advanced jetliners will be delivered during the month.
Also in September, the TCAS sounds aboard an A320-211 en route from Komatsu to Chitose when a pair of USAF F-16s from Misawa AB in northern Japan approach too close. Although the jetliner takes evasive action and descends from 21,000 ft., the fighter planes continue to approach until breaking off at a distance of 3 km. (1.9 mi.).
On October 1, B-777-281 flights commence from Osaka (KIX) to Singapore, Hong Kong, and Shanghai. The company celebrates the rollout of its first B-777-381 with a reception in Washington, D. C. on October 21.
On October 27 frequencies between London (LHR) and Osaka (KIX) are doubled to 11. Departure to and return flights from Japan are operated on Mondays, Tuesdays, Fridays, and Saturdays. Twice-weekly B-767-381 roundtrips resume on October 28 between Fukuoka and Bangkok.
This year’s Hokkaido Ski Campaign is promoted by a B-747SR-81 painted with the cartoon characters from Peanuts.
Customer bookings swell 3.4% to 40,697,231 while cargo climbs 18% to 1.24 billion FTKs. Revenues advance 2.6% to $7.167 billion, while costs ascend 3.2% to $7.162 billion. The operating profit plunges to $5.08 million, while a $21.03-million net loss is suffered.
At the beginning of 1998, ANA is the 8th largest airline in the world in terms of passenger boardings, 13th in operating revenue, and 18th in fleet size.
The fleet now includes 130 aircraft, all of which are Stage III certified, and features 39 B-747s, 62 B-767s, 9 B-777s, and 21 A320-211s.
In early January, the company receives the 1997 “Public Relations Award” from Air Transport World magazine.
On January 21, the carrier joins with Vietnam Airlines in announcing a cooperative connection service between ANA’s Asian and VNA’s Hanoi Network.
Following 11 days of around-the-clock negotiations, a new bilateral air agreement is hammered out between the U. S. and Japan on January 30. Under its terms, ANA and its Nippon Cargo Airlines subsidiary are given the same status as Japan Air Lines Company, Ltd. (2) and three U. S. carriers.
Bad weather during the month hampers operations and causes financial reversal.
On February 22, ANA provides free delivery of 4.5 tons of relief goods on its flight from Osaka (KIX) to Beijing on behalf of the Committee for the Hebei Earthquake Relief. The goods will be provided to the victims of the earthquake that killed 50 people and destroyed
130,000 houses in China’s Hebei Province on January 10.
During the first two months, discussions concerning strategic alliances have been undertaken with United Airlines and Deutsche Lufthansa, A. G. On March 9, talks are completed for code-sharing arrangements with both.
The agreement with United provides for linkage of frequent flyer programs and schedule coordination, as well as code-sharing on selected transpacific routes and flights within the U. S. and Japan beginning on October 25. The Lufthansa deal also links frequent flyer programs and calls for development of a return dual-designator service from Frankfurt to Tokyo in the summer, as well as code-sharing on routes within Japan and Germany.
In response to domestic and regional financial problems that are causing the carrier fiscal difficulty, ANA, in early March, unveils a restructuring and cost-cutting plan, Speed21. The document provides for a 3% reduction in salaries for managers and pilots over the next three year— and lesser percentages for 3,000 other employee—for an annual saving of $5.6 million. It also announces that it will have to forgo paying a dividend for 1997.
In addition, up to 1,000 employees will be laid off by 2001 and a 21% reduction will occur in investment and financing. During the next year, the fleet will retire 2 B-747SR-81s, 1 B-747-2D3B, and 3 B-767-281s. Two B-747-481s, 2 B-777-281s, 4 B-777-381s, and 2 A321-131s will be added.
U. S. Secretary of Transportation Rodney E. Slater and Japanese Transport Minister Takao Fujii are the principals for the formal signing of the new U. S.-Japan bilateral air agreement in ceremonies at Washington, D. C. (IAD) on March 14.
World History
