31 OCT 2001 – Tokyo Metropolis

Himawari Airlines tried to save their competitor – Teiliu Airlines by capital injection

After the 911 terrorist attack and following the impact of passengers demand, another airline company, Teiliu Airlines appeared financial critical situation.

Himawari Airlines understand current economic downturn and diffucult  operating times to worldwide airline companies would need a big protion of human resources and strategies to overcome.

To ensure promt service for passengers of Tokyo and Japan, Himawari Airlines decided to commence capital injection schem in order to save Teiliu Airlines.

The management of Himawari Airlines hope the scheme can at least bringing Teiliu Airlines away from the finacle critical situation.

03 Apr 2000 – Tokyo Metropolis

Himawari Airlines launched Long Range Boeing 777-300

Himawari Airlines today said the Tokyo-based airline had already signed the firm order of 50 and 20 order options of Boeing 777-300ER ( Extended Range) aircraft. The Boeing 777-300ER is the standard of comfort and performance of 21 century jetliner. This biggest twinjet in the world offered a ultra-long range by it’s range to 7500nm that can bringing passengers and cargo from Tokyo to Caribbean sea or from Tokyo to South Africa by 2 powerful jet engine and without any intermediate stops.

Himawari Airlines selected Boeing 777 series as their fleet expansion  foundation by Boeing 777’s high fleet commonality and environmental friendly. Boeing 777 is the first jet liner in the world used laser assembly and fully computer design to provide best aerodynamic fuselage.

The new Boeing 777-300 will be powered by General Electric GE90-115B engine, which provides 115,000 pound of thrust and will become world’s most powerful engine.

“The state of art technology such as fly-by-wire and other avionics on the aircraft ensured safety and lowered it’s operation cost on each flight. The plane has widest commercial plane cabin that will let passengers have the best-ever flight experience. That also proved Boeing 777’s revenue ability, so that’s why we choosed it.” – said Yuuji Izumo, Chief Administrative Officer of Himawari Airlines.

Besides the co-operation partner of Himawari Airlines, General Electric’s product will be installed on the plane. Much of the 777 airplane structure, which includes fuselage panels, the wing center section assembly, wing-to-body fairings, passenger entry doors and wing inspar ribs, is produced by a consortium of Japanese aerospace manufacturers including Mitsubishi Heavy Industries, Kawasaki Heavy Industries, Fuji Heavy Industries, Shinmaywa and Nippi.

The Boeing 777-300ER will eventually into service starting from year 2004 on American and Caribbean Sea long haul routes after Boeing 777-300 served key America west coast routes.

About Himawari Airlines,

Himawari Airlines established on year 1992 and it’s one of the world’s leading airlines in Asia which based at Tokyo, Japan. The company aim to provide “relax and enjoy” services by introducing new planes each year. The company concerned on environmental issues related it’s aerial services and put more than 1/4 of it’s income into sustainable developments.

About Boeing 777 family,

Boeing’s 777 family is one of the world’s most advanced, and the 777 is the only airplane to receive ETOPS (extended-range, twin-engine operations) certification upon first entering service. Thirty-four airlines have ordered approximately 641 Boeing 777s. The 777 has continually been selected by passengers as the most preferred airplane in its class by a margin of three-to-one. Since its launch, it has been the fastest selling twin engine airplane in history, outselling the closest competitor in its class despite entering service two years later.

New domestic flights bound for the heartland of Japan

Followed connection network established to having connection with international flights. Himawari Airlines starts the second part of domestic routes expandation.

“Bound for the heartland Japan” flights will provides >98% coverage of Japan airports. From the south boundary, Yonaguni of Okinawa and the most north point, Wakkanai of Hokkaido. Now we are heading to whole Japan and writing a new page for air traveling.

Furthermore, according to our commitment with local residents after Japan National Airways privatlization. We will provide fast and efficient air travel service to restart flight from Honshu ( main island) to outing island. For this, we are proud to be world first operator of high reliablility and high quality French based Aérospatiale ATR42-500 aircraft.

On this aircraft, we executived our mutual respect sprit to local residents that installing Relaxing Cabin on to the plane.

From today, we will continue to provide Relax and Enjoy air services by euqipped digital cockpit and comfort cabin ATR-42 aircraft.

Today, Tokyo Metropolis

Himawari Airlines now flying with complete brand new aircraft fleet
This is a new leaf of our history, also a new story of every people, passengers, and our professional flight crew

After the last flight of McDonnell Douglas DC-10 aircraft yesterday, every flight of Himawari Airlines are factory-new planes. Three years ago, at the day Himawari Airlines established, we made a promise that all old aircraft preceded from defunct Japan National Airways will be replaced. Starting from now, we have one of the youngest fleet in the world and most safety and smooth operations on every flights.

Following the new planes in service, passengers are able to have a new experience inside our Relaxing Cabin. Inside various Relaxing Cabin on our planes, passengers of Leisure Class, Green Executive and Sky First are having new seat pitch and hospitality seat that can let you relax during your business trip and leisure tours. We also offered in-flight entertainment – Mind Channel, which is the latest technology that offered you a video programs, movie and games on the personal TV installed on every seat. On Connection Network flights, active noise canceling system were equipped on jet speed propeller saab2000 aeroplanes. Letting passengers get ready for their journey without annoying noise.

Besides providing excellent services to passengers, they will also got noticed by a word “この航空機は従来の半分以下の燃料で飛行しでいます – This planes only burns 50% of fuel compare with the past.” on our latest safety instruction card. As the new fleet only consume 50% of fuel compare with aircraft preceded from Japan National Airways aircraft. That is a great contribution to the enviroment and letting the airline to provide sustainable service under the economic downturn in Japan. Furthermore, many airport in Japan are very close to residents due to land restrictions. All of our planes are providing low noise level with the most saving engines, that reached our commitment to protect to the enviroment and community around us with best effort.

“Although we were also experienced aircraft supply shortage as there were huge demand for Airbus aircraft from all over the world, we still tried our best to negotiate with Airbus to arrange us more aircraft to delivered in year 1995 by adjusting A340 deliver date. Finally, we meets our target and provided best services ever had for passengers to and from Japan. Therefore we were delighted to share the news the news on TV, newspapers and billboard advertisements by our slogan: 人に．新しいストーリ A new story for people. This new slogan also contained the meaning that we are people-oriented airlines that giving best services to people and maintaining a best enviroment for people too even in the skies and on the ground. And no competitors inside Japan can provide this kind of service.” said the Chief Administrative Officer – Mr. Yuuji Izumo

Come to experience relax and enjoy when flying with us with fresh images.

International Market

The airline start international routes at very early stage and have very well revenue. From the handover of Japan National Airways, the company received 2 Boeing 707 and 3 McDonnell Douglas DC-10 aircraft. At the same time, the company put massive new aircraft into it’s routes and finally replaced all JNA aircraft within 3 years. Himawari Airlines selected Airbus families as their main role aircraft in order to have lesser operation cost and fuel burn and well fleet commonality. But the aircraft offered lesser seat compare with Boeing 747 and 777 under premium seat configuration house policy.

International market are divided by continent.

Asia

Asia international routes are most challenging part to the company. As there have not much pax demand as much as european countries and America. But competitors could not avoid. On the routes to Asia big cities, flights with under-break even load factor are normal. The company started China short haul routes a year after Himawari Airlines established. The early starting time avoided direct competition, also insisting “one more stop after destination” policy are keys to lead success of those route. Moreover, marketing are necessary.

For other East Asia big cities like Taipei and Seoul, the company can co-ordinate prices with Blueskies alliance members, therefore load factor are always grantee . For other Asia big hub cities, the company decided to use Airbus 330 aircraft to complete those routes after the plane finished long haul flights. That can maximize plane usage and decrease pressure to having new planes as the production line has already core lock for years. For big airports of China, due to agreement with PRC government, the company will only put Airbus A321 aircraft to Beijing and Shanghai routes. Also, this is a key point to stable load factors. This operation will be “duplicated” on Hong Kong, Macau, Guangzhou, Shenzhen and Kaohsiung routes to ROC. This plan will be verified  once Airbus published their A321-200.

In addition, the company will order more Airbus A320 to fulfill other Asia cities and countries like Nepal and India. These potential market cannot be ignored and neglected.

The company should will also increase Airbus A330 with H33 config to serve Maldives and Sri Lanka Routes.

Europe

Europe routes have massive demand and lesser competition at all. Beside well-known cities, the company intended to operate new flights to other European airports that have well demand too. Our focus point will be put on to Germany. Dusseldorf, Berlin, Munich, etc. will be next developing target. Although competitors like JapanLines may opened such kind of routes, however excellent services provided by Himawari Airlines can attract passengers to board. If JapanLines used smaller planes to occupied those routes, “up-graded 777″ will be used in order to have more luxury cabin to serve passengers. Besides these, all european routes should be flying with Airbus A330. Airbus A340 will not be recommended at all because of it’s fuel efficient. As the comapny offered all brand new Airbus planes at early times, these airbus will not suitable to fly starting from year 2012-2015. Therefore, replacement is a must. For this issue, Boeing and Airbus offered their latest product Airbus A350 and Boeing 787 aircraft. After some comparison, Airbus 350 and Boeing 787 are also suitable for European routes. Different from the long maintained policy, both Airbus 350 and Boeing 787 will be put onto European routes. A350 will replace the position of A330, and Boeing 787 will put onto second string European airports due to seat number.  Unfortunately, due to design modification of A350 XWB. Airbus can only provide first A350-900 at late 2013 and early 2014. At that point, our first lot of A330 already unflyable, so the company may need to put Boeing 787 first into second string European airports first to move out newer A330 on those route and put them into first battlefield in Europe. Also, Boeing intend to have lesser seat on 787 because they believe people will seat on a more small plane and travel directly to destinations rather than board a big aircraft and travel from hub to hub, therefore we would put focus on this point..

US

US routes are one of the key parts of Himawari Airlines. From the very beginning, American routes were running by Airbus A340-300 because of it’s range and capacity. Although Airbus A340-300 mainly served US east coast route that can gain well profit, but fleet commonality is a problem due to French CFM engines. Therefore the company will arrange Airbus A330 aircraft on west coast route as possible. Moreover, due to huge C and F demand on the route to SFO and LAX, Boeing 777-300 will be introduced to serves these two routes. We estimated at least 50 of 77W will be needed in long term, and these aircraft will serve east coast also Caribbean sea routes from 2004/5/6 – 2019. Then, all flights to US will operate by Boeing 777.

Australia

Situation of Australia market is complicated. Although passengers demand are able to fill a Boeing 747. But under multi competition, only these markets can only use aircraft like Airbus A330-200 or Boeing 787-8 to serve. Therefore Australia market are recommended to treat them as aux routes of Airbus 340-200 on scheduling. When Airbus 340-200 being replaced, the only way is to switch back to Airbus A330 before Boeing 787-8 in service.

Africa

The company has launched Safari Jet service from year 1996. Because of range limitation, these routes can only put Airbus A340-200. After Boeing launched next generation 777 products, these route proposed to use 777-200LR to replace all CFM engine Airbus. But 77L aircraft are flying with high operation cost and low seat capacity. Therefore higher operation cost were expected. The only way to slove this problem is to replace 77L with Boeing 787-8.

South America

Same as Carribean Sea and Africa routes, range limitations are only excluded on Airbus 340-200 aircraft in early stage. Although 77L aircraft flying with higher operation cost, but the plane can also reduce all technical stop and changing those flights to non stop flights. In high fuel prices stage, lesser unprofiable technical stop can save up much more sending. The planes also contribtuing to the company on the fleet commnality issues. As the distance from Tokyo to South america had already over 8000nm, neither Airbus A350 and Boeing 787 can reach. So 777-200LR service will remain. Extend lease and purchasing the remaining 77L must be conducted after year 2011.

Introduction

This is a long term development plan of Himawari Airlines. Himawari Airlines established after Japan Nation Airways, JNA privatization and serve mainly long haul routes and irreplaceable portion of domestic market. This plan will include business strategies from year 1995 to year 2019, which included a very long period but with very realistic information and statistics to ensure the reliability of this plan.

Market analysing

After the Japan National Airways privatized, JapanLines and Coda Group Moe Airlines is sharing the same base of Himawari Airlines. JapanLines and Himawari Airlines grew very successful at the every beginning, however Coda Group Moe didn’t expand much so it’s impossible to affect the current situation. Even Coda Group used up all of it’s funds to order brand new aircraft, all production lines besides Russian-made aircraft were core lock already.

Besides domestic market and China short haul lines, Himawari Airlines have no monopoly routes. Therefore competition are everywhere. To ensure Himawari Airlines can against competition, lower the cost as much as possible is necessary to do.

Actions

Due to the competition situation mentioned above, the company can only choose low fuel burn aircraft, low leasing cost aircraft and high fleet commonality engines.

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Domestic market

The airline provided perfect connection service starting from Narita Aiport and one more stop after reached the destination.

Starting from year 1992, the airline first to have Fokker aircarft to serve domestic routes with about 100pax demand. The Fokker aircraft estimated retire at year 2005 when the first EMB195 aircraft arrived upon order. Common region jet only have 10-year-life due to huge number of landings and pressure cycle in short runways. Therefore the company estimated EMB195 aircraft will be retired also at year 2015-2016. In order to meet the requirement of increasing passenger demand, currently the proposed Bombardier C-series would be a suitable aircraft with advance avionics and composite material. However, Bombardier C-Series only provides PW Engine that the company have never used on any main role planes.

The company also operates French regional turboprop ATR72 and high speed turbo prop Saab2000 starting from year 1996 and 1995. The Aerospatiale aircarft provided 44 seats and Saab aircraft provided 58 seats with jet speed and climb rate.

Although turboprop aircraft can provide excellent services in very environmental friendly way as the jet speed turboprop aircraft were all equipped with active noise canceling, the company would replace them all by jet because of fleet commonality and passengers reputation.

But in short term, Bombardier Dash-8-Q400 are perfect replacement of saab2000. Dash-8-Q400 can hold up 68 pax in std config and flying with jet speed under active noise cancelling system operating. According to experience, American passengers complained narrow seat pitch on saab2000 and the 58 seat aircraft could not serve all existing demand. But the company have to caution the actual demand after 911 although ~70 pax demand were already built up by social enviroment and “connection network” service. Also, the company have to consider if the demand of passengers are enough and deserve for renting Q400 a/c during year 1999/2000 – 2005.

For the ATR42-500 aircarft, they are currently serving routes that have 38-48 seats market. As the demand are various, a suitable plane is hard to find.

The replacement program will be executed when the order of Embraer aircraft was made. The order will include EMB-195 for Fokker 100 replacement, EMB-170 for Saab2000/Q400 replacement and finally EMB-145 for ATR42 aircraft replacement. The company will need half number of ATR42 fleet, that means 7 EMB145 jet aircraft in rough estimate.

Besides Bombardier C-Series aircraft were planned to replace EMB-195 aircraft, Mitsubishi MRJ aircarft are suitable to replace EMB170/145 aircarft. As Embraer offered different avionics and engines between 145 and 170 family due to development era, the new MRJ can replace them all by same type rating and maintence way. As more ATR-class routes will have much more demand that even reached Q400 level, meaning more MRJ70 will be needed. However, like Bombardier C series, MRJ planes only providing PW1000G gear turbofan. But once C-serices in service, fleet commonality will no longer be a prolem although EMB planes were equipped GE-CF34 engines. And discounts must be offered by Mitsubishi.