JAL Investor Relations - Japan Airlines Corporation at a Glance (Annual Report 2004)

Japan Airlines Corporation at a Glance

Aiming to Be the World’s No. 1 Airline Group

Japan Airlines System Corporation was established by means of share transfers on October 2, 2002, as the holding company for its two subsidiaries: Japan Airlines Company, Ltd. and Japan Air System Co., Ltd. In addition, on April 1, 2004, a reorganization brought about the birth of JAL Domestic, for domestic passenger operations, and JAL International, for international passenger and cargo operations, under the unified “JAL-Japan Airlines” brand. The new JAL Group is an air-transportation group with Japan’s largest network, operating some 1,000 flights daily on domestic routes and 1,700 flights per week on international routes.

The JAL Group’s corporate philosophy is to serve as an air transportation group with comprehensive strengths, binding together peoples, cultures, and hearts, and contributing to the peace and prosperity not only of Japan, but also of the world. The five essentials of this are:

1.The relentless pursuit of safety and quality
2.Thinking and acting from the customer’s perspective
3.Maximizing corporate value
4.Fulfilling all responsibilities as a corporate citizen
5.Placing value on diligence and meeting every challenge

Now that full integration has been achieved, the new JAL Group is dedicating itself to maximizing the benefits of the amalgamation of business operations, and aims to be the world’s No.1 airline group in terms of service quality and business volume taken together.

Overview of the JAL Group

The JAL Group is composed of 295 subsidiaries and 98 affiliates, and engages in air transportation business, airline-related business, travel services, and other business activities. Japan Airlines Corporation, the holding company, formulates Group-wide targets and strategies, and ensures the optimum allocation of management resources so as to maximize corporate value.

International Passenger	The JAL Group’s operations include: air passenger services and baggage handling; air cargo services; maintenance of aircraft and parts, and painting of aircraft exteriors; seat reservation and information on passenger services; supplying electricity, cool/warm air and compressed air to stationary aircraft; in-flight catering service; sale of fuel for aircraft; and management of aviation fuel supply facilities. Air transportation business is conducted by 10 subsidiaries, all of which are consolidated, and 1 affiliate. In this field the Group has created a large-scale network that includes not only JAL International and JAL Domestic, but also Japan Asia Airways Co., Ltd., Japan Trans Ocean Air Co., Ltd., JALways Co., Ltd., JAL Express Co., Ltd., Japan Air Commuter Co., Ltd., J Air Co., Ltd., Harlequin Air Co., Ltd., and Hokkaido Air System Co., Ltd.
Domestic Passenger
Cargo
Airline-related business	Airline-related business includes passenger services and cargo handling, in-flight catering businesses, the maintenance of aircraft and ground equipment, and the supply of aviation fuel. These activities are conducted by a total of 97 subsidiaries, including 58 consolidated companies and 68 affiliated companies.
Travel service	In the field of travel services, 62 subsidiaries and 7 affiliates (including 43 consolidated companies) engage in the sale of airplane tickets for JAL Group airline companies, as well as the planning and production of travel goods, utilizing those airline companies.
Hotel and resort business	Management of hotels, outsourced provision of hotel operations, and management of golf courses are conducted by 25 subsidiaries and 6 affiliated companies: of these, 18 are consolidated subsidiaries.
Credit card and leasing business	In the credit card and leasing businesses, 59 subsidiaries conduct: management and operation of credit cards and PassAge cards, which are issued by JAL; pooling of funds within the JAL Group; agency payment services; paperwork for intercorporate account settlements within the JAL Group; financing for Group companies; leasing and installment sale of aircraft and parts, industrial machinery, transportation equipment, information equipment, and office equipment for the JAL Group; and nonlife insurance services for Group companies. Of these, 2 companies are consolidated.
Commercial, distribution and other business	In this segment, 42 subsidiaries and 16 affiliates, of which 14 are consolidated, engage in activities that include: sale of aircraft and parts, and aviation fuel; operation of airport shops; mail-order sales; in-flight sales and sale of cabin goods; printing service; and temporary personnel service.

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