TOKYO: September 1,2003: The JAL Group has contracted an agreement with the Boeing Company and Mitsubishi Corporation for seven more twin-engine B767-300ER aircraft, due to be delivered by the first half of FY2006 (April 1 - September 30, 2006).

The aircraft will be operated through an operating lease arrangement with Mitsubishi Corporation.

Based on the airline group’s medium term business plan for the period FY2003 through FY2005 the company is replacing aircraft and is reducing the number of different types from 16 to 11 by around the end of FY2006. Among the medium sized aircraft models the plan is to reduce from the present six types to three.

The six medium size types now in service include: A300, A300-600R, B767, DC-10, MD-11 and B777. The three types to be retained are A300-600R, B767 and B777.

Although the impacts of the Iraq war followed by the SARS outbreaks have had a serious negative effect on international passenger demand in the short term, the JAL Group believes that business will recover and resume growth in the medium to longer term.

Company fleet planners decided that the B767-300ER would be suitable replacements for DC-10 aircraft that are due to retire by 2006.

JAL already operates the B767-300ER, having introduced the first aircraft of the type to the fleet in June 2002. It has taken delivery of six to date and with today’s announcement the airline has a total of nine deliveries outstanding by mid 2006, which will bring the total JAL 767 fleet (all types) to 40 aircraft.

JAL uses the 767-300ER on short to medium haul routes at present although the eco-friendly 767-300ER is well-suited to perform long range operations at low operating cost. The aircraft is equipped with General Electric GE CF6-80C2B7F engines.

During FY2003 (ending March 31, 2004) the JAL Group plans the introduction of 13 new aircraft and the retirement of 21 aircraft.