ANA Dominates Japan's Airline Industry

December 30, 2015

Unlocking Word Meanings

Read the following words/expressions found in today’s article. 

1. earnings /ˈɜr nɪŋz/ (n.) – money earned
Example: My earnings this month are smaller compared to last month.

2. dominant /ˈdɒm ə nənt/ (adj.) – controlling or powerful
Example: International companies tend to be dominant in many industries.

3. rebound /ˈriˈbaʊnd/ (v.) – to recover from a bad state
Example: He rebounded from being fired from his company by starting his own business.

4. bankruptcy /ˈbæŋk rʌpt si / (n.) – a state of having no money
Example: Don’t invest your money in that company; it’s about to enter bankruptcy.

5. expense /ɪkˈspɛns/ (n.) – something on which money is used or spent
Example: The new computer was a great expense.


Read the text below.
All Nippon Airways (ANA) came out on top of Japan's airline industry in October 2015.

ANA's net profit rose by 51% in the six months before October, as the profit of its parent company, ANA Holdings, reached 53.97 billion yen. With these earnings, ANA succeeded over both Japan Airlines (JAL) and Skymark Airlines, the two other major players in Japan's airline industry.

To reach its dominant position, ANA treated its two competitors differently. ANA chose to continue its rivalry with JAL, which rebounded in the past from bankruptcy thanks to government intervention. On the other hand, ANA decided to buy a stake in Skymark Airlines, which filed for bankruptcy protection in January.

The possible causes for the rise in ANA's profits are the jump in Japan’s inbound tourism and the fall in oil prices. This is because an increase in foreign visitors means more passengers for airlines, while a decrease in oil prices means a decrease in an airline's biggest expense.

The boost in tourists can be linked to the weakening yen, which enables foreigners to afford expenses when they travel to Japan. Also, the expansion of landing slots in Tokyo's Haneda airport gives more opportunities for business trips.

ANA already has a plan to ensure that it will remain at the top. In addition to making a deal with Skymark Airlines, ANA aims to attract more Chinese tourists to Japan by adding flights between airports in China and Haneda.

Viewpoint Discussion

Enjoy a discussion with your tutor.  

Discussion A

·         How will consumers benefit from tight competition among large companies, such as ANA, JAL, and Skymark Airlines?
·         What do you think would happen if Japan had only one airline?

Discussion B

·         How do you think your country can attract more tourists?
·         In what situations would a country want to decrease the number of its tourists?

December 30, 2015