ANA to drop unprofitable domestic routes - paper

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NEW YORK, May 30 (Reuters) - Japan's second-largest airline All Nippon
Airways Co. Ltd. (ANA) (9202) plans to withdraw from unprofitable regional
routes to boost profits, the Yomiuri Shimbun reported in its Friday online
edition.
The move would prepare ANA for intensifying competition in domestic flights
triggered by a planned integration between Japan's No 1 carrier Japan
Airlines Co. Ltd.(JAL) (9201) and the country's third-ranked carrier Japan
Air System Co. Ltd. (9203) in October, the Yomiuri said.

Around half of ANA's 76 routes and two-thirds of its 520 flights link
Japan's regional cities carrying few passengers. ANA also plans to scrap
some routes that link Tokyo and small islands or towns with little passenger
volume, the paper said, without citing sources.


The carrier, currently in talks with money-losing Hokkaido International
Airlines Co. Ltd., known as Air Do, which operates a lucrative route linking
Tokyo and Sapporo in northern Japan, may also increase flights between
Sapporo and Fukuoka in southern Japan, the paper said.

The report comes a day after the Asahi Shimbun said ANA was in talks with
unlisted Air Do to provide code-sharing service on the route to gear up for
expected competition from JAL and JAS that would create the world's
sixth-largest airline by passenger volume.


©2002 Reuters Limited.

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