AIRDO Co., Ltd. (E04278) Stock Price

AIRDO is an airline based in Hokkaido that operates scheduled air services primarily connecting Hokkaido with various cities throughout Honshu. The company operates a network of routes including its flagship service between Sapporo (New Chitose) and Tokyo (Haneda), as well as routes connecting major Hokkaido cities—Asahikawa, Memanbetsu, Kushiro, Obihiro, and Hakodate—with Honshu. Through high-frequency operations of 30 round-trip flights daily, AIRDO serves as a key gateway for air travel to and from Hokkaido.

The company's primary customers are general passengers traveling between Hokkaido and Honshu, with the majority of revenue generated from scheduled airline ticket sales. AIRDO serves diverse demand ranging from business travel to tourism, and plays an important role as an access route to Hokkaido's tourist destinations.

The company's business is divided into three main segments. Its core scheduled air transport business operates 10 routes, including six routes from various Hokkaido cities to Tokyo (Haneda), as well as routes to Sendai, Nagoya (Chubu), and Kobe. Additionally, AIRDO operates charter flights as part of its non-scheduled air transport business, and engages in ancillary services including the sale of original merchandise on board aircraft.

AIRDO has launched a five-year medium-term management plan beginning in fiscal year 2022, with the basic policy of "strengthening its financial foundation and returning to a growth trajectory." Facing significant demand decline due to the COVID-19 pandemic, the company is pursuing early operational recovery through building a foundation to support future growth strategies and executing reliable growth initiatives. In its fiscal 2022 management policy, achieving profitability through revenue growth measures and company-wide cost structure reform is set as the top priority.

The company's key investment area is business integration through strategic partnership with Solaseed Air. In October 2022, the two companies established a joint holding company and are pursuing revenue expansion through new value creation via collaboration. Specifically, they are pursuing economies of scale that would be difficult to achieve independently by implementing cost structure reform through operational standardization and knowledge sharing, as well as productivity improvements. This partnership aims to achieve both financial foundation recovery and competitive strength enhancement.

The pillar of business expansion is building an agile flight operation system during the demand recovery phase. To address demand fluctuations caused by the pandemic, the company is reducing direct operating expenses through flight reductions and aircraft downsizing based on demand. Meanwhile, anticipating recovery in passenger demand, the company is establishing an efficient operational structure through review of sales-related expenses and capital investments.

In technological innovation and operational efficiency initiatives, the company is advancing integration and optimization of operating systems by maximizing synergies from collaboration with Solaseed Air. While strengthening coordination with financial institutions to secure flexible working capital, the company is pursuing sustainable growth and enhanced corporate value with safety as the top priority, fulfilling its mission as a public transportation provider. Through steady execution of the medium-term management plan, the company is promoting the development of a competitive business foundation that can be maintained even in a challenging operating environment.