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New Kansai International Airport Co., Ltd. http://www.nkiac.co.jp/en/index.html January 1, 2014 3 rd Kansai Mega Sale Program aims to increase the number of foreign tourists and spark local economy The New Kansai International Airport Company, Ltd., in conjunction with the Kinki District Transport Bureau, the City of Osaka, the City of Kobe, the City of Sakai, the Osaka Government Tourism Bureau, the Osaka Chamber of Commerce and Industry, and the Osaka City Shopping Streets Association, will hold the Kansai Mega Sale from December 14, 2013 to February 28, 2014. The number of foreign travelers to Japan is expected to increase during this period which covers the Christmas and New Year’s holiday, and the Chinese Lunar New Year holiday. The objective of this event is to welcome tourists coming from overseas, mainly Asia, to Japan and to offer enjoyable experiences in the Kansai area, including dining and shopping. Please find details below. This is the third time the Kansai Mega Sale will be held. This year’s program is entitled Japan Shopping Festival in KansaiKansai Mega Sale, and will be carried out in collaboration with the Japan Shopping Festival, a program conducted by the Japan Tourism Agency and Japan Shopping Tourism Organization. The New Kansai International Airport aims to make this an effective promotional activity by implementing this in alliance with the nationwide program. During the campaign, visitors from overseas enjoy special benefits, such as discounts, which are offered to foreign tourists upon presentation of their passport at facilities that cater to tourists, shopping centers, and restaurants participating in this program. Event details Events at the Kansai International Airport Participation in the Mega Sale Tourists will receive a discount or novelty item by presenting a campaign leaflet at one of the stores in the departure area of the airport. * Please note the conditions for these special offers differ among participating stores. Please read the campaign advertisements in stores or in the airport for details. In addition to special duty-free prices, other special campaigns will be held during this period only. * Please see the attached for an overall summary of the Kansai Mega Sale.

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New Kansai International Airport Co., Ltd. http://www.nkiac.co.jp/en/index.html

January 1, 2014

3rd Kansai Mega Sale Program aims to increase the number of foreign tourists and spark local economy

The New Kansai International Airport Company, Ltd., in conjunction with the Kinki District Transport Bureau, the City of Osaka, the City of Kobe, the City of Sakai, the Osaka Government Tourism Bureau, the Osaka Chamber of Commerce and Industry, and the Osaka City Shopping Streets Association, will hold the Kansai Mega Sale from December 14, 2013 to February 28, 2014. The number of foreign travelers to Japan is expected to increase during this period which covers the Christmas and New Year’s holiday, and the Chinese Lunar New Year holiday. The objective of this event is to welcome tourists coming from overseas, mainly Asia, to Japan and to offer enjoyable experiences in the Kansai area, including dining and shopping. Please find details below.

This is the third time the Kansai Mega Sale will be held. This year’s program is entitled Japan Shopping Festival in Kansai—Kansai Mega Sale, and will be carried out in collaboration with the Japan Shopping Festival, a program conducted by the Japan Tourism Agency and Japan Shopping Tourism Organization. The New Kansai International Airport aims to make this an effective promotional activity by implementing this in alliance with the nationwide program.

During the campaign, visitors from overseas enjoy special benefits, such as discounts, which are offered to foreign tourists upon presentation of their passport at facilities that cater to tourists, shopping centers, and restaurants participating in this program.

Event details

Events at the Kansai International Airport

Participation in the Mega Sale

Tourists will receive a discount or novelty item by presenting a campaign leaflet at one of the stores in the departure area of the airport.

* Please note the conditions for these special offers differ among participating stores. Please

read the campaign advertisements in stores or in the airport for details. In addition to special duty-free prices, other special campaigns will be held during this period only.

* Please see the attached for an overall summary of the Kansai Mega Sale.

Attachment

Launch of 3rd Kansai Mega Sale

as a part of the Japan Shopping Festival

The Osaka City Mega Sale Executive Committee will hold the Kansai Mega Sale from December

14, 2013 (Saturday) to February 28, 2014 (Friday) in conjunction with the Kinki District Transport

Bureau, the City of Kobe, and the City of Sakai. The 77-day event aims to offer an enjoyable

shopping experience to foreign tourists visiting the area during this period.

This is the third time the Kansai Mega Sale will be held. This year’s program is entitled Japan

Shopping Festival in Kansai—Kansai Mega Sale, and will be carried out in collaboration with the

Japan Shopping Festival, a program conducted by the Japan Tourism Agency and Japan Shopping

Tourism Organization. The aim is to enhance the ability to disseminate information domestically and

abroad by taking part in nationwide events.

The timing of this year ’s Kansai Mega Sale coincides with Japan’s winter bargain sale period.

Shopping information, including details on discount sales, events, and shopping bonuses will be

actively circulated overseas with the aim of encouraging visitors to come to Japan during this period

to take advantage of many shopping opportunities.

Summary of the Japan Shopping Festival in Kansai—Kansai Mega Sale

1. Objective

In conjunction with the Japan Shopping Festival, the objective is to attract foreign tourists to

Japan using shopping as a marketing tool. Information, including details on bargain sales, will be

provided to overseas customers, to gain wider recognition of benefits available to foreign tourists

shopping in the Kansai area during this period. Furthermore, the campaign aims to improve

satisfaction among tourists and gain repeat customers by offering shopping privileges and other

benefits especially for foreign tourists during this period.

2. Sponsors

Kinki District Transport Bureau, the Osaka City Mega Sale Executive Committee (the City of

Osaka, the Osaka Government Tourism Bureau, the Osaka Chamber of Commerce and Industry,

New Kansai International Airport Company, Ltd., and the Osaka City Shopping Streets

Association), the City of Kobe, and the City of Sakai

3. Supporters

Japan National Tourism Organization (JNTO), Kansai Economic Federation, and Foundation for

Kansai Region Promotion

4. Area coverage

Entire Kansai area, primarily the cities of Osaka, Kyoto, Kobe, and Sakai, and the Kansai

International Airport

5. Implementation period

77-day event from December 14, 2013 (Saturday) to February 28, 2014 (Friday)

6. Participating facilities

57 facilities, including department stores, shopping arcades, large shopping malls, and tourist

facilities (as of December 5)

7. Event details

Winter bargain sale and event information will be collected from commercial facilities, mainly

department stores, shopping malls, large roadside stores, stores in train station buildings

and underground arcades, and shopping arcades actively attracting inbound traffic, and will

be transmitted via Japan Shopping Festival’s official website for access by people in

overseas countries planning to visit Japan during the event.

Participating facilities (on a voluntary basis) will offer shopping perks to foreign tourists

(shopping discounts, original goods as presents, and other benefits). This information, in

addition to details of bargain sales events, will be uploaded to Japan Shopping Festival’s

official website for view by overseas visitors to the site.

Posters and leaflets will be created and distributed in Japan.

The event will be promoted through exposure in the media and by word-of-mouth, such as

through collaborations with the kick-off event at the Kansai International Airport, by inviting

the media to events, via advertising by posters at the airport and in participating cities, and

also through an illumination event.

New Kansai International Airport Co., Ltd. http://www.nkiac.co.jp/en/index.html

January 1, 2014

Impact of Consumption Tax Hike on the Passenger Service Facility Charge (PSFC) and Passenger Security Service Charge (PSSC)

— Announcement of charge revisions — The New Kansai International Airport Co., Ltd. announced plans to implement the following revisions to the PSFC and the PSSC starting April 1, 2014 to reflect the impact of a hike to the consumption tax.

Charges subject to change: Applicable to customers using facilities on and after April 1, 2014 (Restricted to those customers with tickets issued on and after February 1, 2014)

Charges Old New

Terminal 1 (T1)

International flights: PSFC Departure: Charge per adult ¥2,650 ¥2,730

Departure: Charge per child ¥1,330 ¥1,370

Terminal 2 (T2)

International flights: PSFC Departure: Charge per passenger ¥1,200 ¥1,230

Terminal 1 & 2 (T1 & T2)

International flights: PSSC Departure: Charge per passenger ¥300 ¥310

Terminal 2 (T2)

Domestic flights: PSFC Departure: Charge per passenger ¥400 ¥410

Arrival: Charge per passenger ¥350 ¥360

(Reference) Fees are paid along with the airline ticket at the time the ticket is issued. The fees above include consumption tax. For details refer to the Kansai International Airport website at http://www.kansai-airport.or.jp.

(Reference) Schedule for application of new fees Ex: PSFC for passengers on international flights departing from Terminal 1 (T1)

¥2,650

¥2,650

¥2,650

¥2,730

¥2,730

From April 1 February 1, 2014

Boarding Ticket issuance

New Kansai International Airport Co., Ltd. http://www.nkiac.co.jp/en/index.html

January 1, 2014

East Asia Airports Alliance (EAAA) Green Airport Relay Declaration

At the 12th East Asia Airports Alliance (EAAA) Annual Meeting, held on October 10, 2013, member airline companies reported on recent progress in this year’s theme, "New Strategies for Environmentally Sustainable Airports," and exchanged information and opinions on tackling environmental issues. In addition, the EAAA announced and signed a new Green Airport Relay Declaration, which aims to raise awareness of environmental issues by implementing eco-activities at each airport in turn on a monthly basis. The schedule below shows which airport will be responsible for carrying out eco-activities for a specific month starting from January 2014. Schedule

Year Month Airline Company Airport

2014

Jan New Kansai International Airport Co., Ltd. Kansai International Airport

Osaka International Airport

Feb Shanghai Airport Authority Shanghai Pudong International Airport

Mar Central Japan International Airport Co., Ltd. Chubu Centrair International Airport

Apr Macau International Airport Co. Ltd. Macau International Airport

May Korea Airports Corporation Gimpo International Airport

Jun Narita International Airport Corporation Narita International Airport

Jul Incheon International Airport Corporation Incheon International Airport

Aug Guangdong Airport Authority Guangzhou Baiyun International Airport

Sep Dalian International Airport Group Co., Ltd Dalian International Airport

Oct

Japan Airport Terminal Co., Ltd.

Tokyo International Airport Terminal

Corporation

Tokyo International Airport (Haneda Airport)

Nov Capital Airports Holding Company Beijing Capital International Airport

Dec Airport Authority Hong Kong Hong Kong (Chek Lap Kok) International Airport

Summary of activities Member airports plan and implement activities, not only for airport companies but also for the participation of numerous airport-related staff, to encourage and drive other airports to preserve the environment and improve the quality of their services.

New Kansai International Airport Co., Ltd. http://www.nkiac.co.jp/en/index.html

January 1, 2014

EAAA

The East Asia Airports Alliance (EAAA) is a cooperative of major international airport operators in East Asia, namely Japan, South Korea, and China that tackle common issues. The organization established in December 2001 to contribute to improving the quality of airports and airline services in East Asia. At present, there are 13 member companies that meet twice a year (a coordinator meeting and annual meeting attended by high ranking executives).

As a part of the Smart Island KIX Environmental Plan, the New Kansai International Airport Co., Ltd. held a briefing on January 27, 2014 to report on successful cases. This time around, a report was given on the use of clean energy (KIX megasolar project, hydrogen energy, etc.), which are initiatives in the Smart Island concept, and a tour was also conducted of the site. The New Kansai International Airport Company plans to share information on its airport eco-activities with member airport operators. Smart Island KIX Environmental Plan The objective of this project is to extend the sphere of eco-activities at the Kansai International Airport and boost the effectiveness of the environmental conservation activities being carried out individually by the other businesses on the airport island. The project was mainly established by the New Kansai International Airport Co., Ltd. and businesses on the island. They are combining their strengths to promote environmental conservation and the creation of energy sources (currently 42 government agencies and businesses are participating in the project).

Smart Island Concept

In addition to the traditional sustainable environment goal, the concept promotes creative energy, which is the production of energy sources, such as solar and wind power, and hydrogen fuel. The goal is to transform the airport island into a Smart Island by conserving energy use through the enhancement of energy efficiency throughout the island, by leveraging IT technologies, by using stored energy, and by creating energy.

New Kansai International Airport Co., Ltd. http://www.nkiac.co.jp/en/index.html

January 1, 2014

New LCC Terminal Building (T3) Aiming to become a major LCC hub in Asia by creating a LCC terminal building with the

highest global standards

The Kansai International Airport is implementing the expansion of its LCC terminal buildings by constructing a new LCC terminal building, the Terminal 3 Building (T3).

Kansai International Airport is Japan’s largest hub for incoming and outgoing LCC flights, with 9 airlines operating 140 international flights per week and 2 airlines conducting 28 flights daily. Also, the Terminal 2 Building (T2), which was opened for use on October 28, 2012, boasts a high level of patronage. To keep operational costs low, there are no luxuries, such as lounges. However, the terminal is winning the praise of customers for its simple and clean concept, which is based on the main premise of security and safety.

As demand grows for LCC flights, the Kansai International Airport expects the capacity of T2 to reach full capacity in the near future. Consequently, to facilitate the growth of the airport as a hub for LCC flight operators and to capture demand from travelers from Asia, an area of pronounced growth, the airport has decided to construct T3. The airport plans to come together and hone the concept used for its popular T2 and leverage knowhow cultivated thus far from its airport operations, to create an LCC terminal building that boasts the world’s highest standards. Location: Kansai International Airport (phase 2 of airport island construction) *See attachment 1 for details Main details

Basic facilities (airplane parking, stands, etc.) New Terminal Building (T3)

○ Stands to be newly constructed stands: 6

Equipped to handle medium/large planes

Handle up to 11 small planes

○Structure: ○Total area:

One-story building (second-floor level in some areas) Roughly 33,000m2 (planned)

Note: Based on current plans. Possibility of changes going forward to reflect adjustments. Schedule: LCC Terminal Building Layout plans: See Attachment 3

Basic facilities (airplane parking, stands, etc.) Plan to begin use in FY2015 New terminal building (T3) Plan to begin use in 2H 2016 * Please refer to attachment 2 for details

T1

T2

Planned Construction of New Terminal Building (T3)

Planned location for

construction of new

terminal building (T3)

Attachment 1

FY2013 FY2014 FY2015 FY2016

Basic facilities

Airplane parking,

Stands, etc.

New terminal

buildings (T3)

construction

T2 renovations

Design Construction

Basic design Detailed design Construction approval Construction

Construction Schedule

Design Construction approval Renovations

Open for use

Open for use

Attachment 2

Domestic

flights Parking

lot

Check-in building

(new)

Intl flights

(new)

LCC Terminal Layout

Area for

expansion

Attachment 3

Reference

Terminal 2 (T2) Renovated T2

Newly constructed T3

Total area Roughly 30,000m2 Roughly 63,000m2 *Possible changes going forward

Number of

stands 9 stands

20 stands (based on small sized planes)

Annual

capacity 4 million people 8 million people

Comparison with T2

New Kansai International Airport Co., Ltd. http://www.nkiac.co.jp/en/index.html

January 1, 2014

Cathay Pacific to Increase Number of Flights to Hong Kong

Cathay Pacific Airways (CX) announced plans to add 7 weekly flights between Kansai International Airport (KIX) and Hong Kong International Airport (HKG) from February 16, 2014 (Sunday). This will bring the total number of flights per week to 35 (five daily). Hong Kong is a major city that is attractive both for tourism and business. In particular, tourist demand for flights to Japan increased substantially in 2013 and subsequently there is considerable anticipation for an expansion in the number of flights. Owing to the increase in flights by Cathay Pacific Airways, the total number of flights connecting KIX and HKG will be 70 flights. Cathay Pacific Airways is Hong Kong’s flagship carrier and has won high commendations from various organizations for its high quality. In 2013, the airline’s cabin crew was named the best in the world by the UK's Skytrax World Airline Awards.

Start date for newly added flights

February 16, 2014 (Sunday)

Flight schedule

CX561 Depart KIX 19:20 Arrive HKG 22:40 (daily) CX562 Depart HKG 07:50 Arrive KIX 12:15 (daily)

Airplane specifications for added flights

Aircraft Boeing B747‒400 Seating First class 9 seats

Business class 46 seats Premium economy class 26 seats Economy class 278 seats Total seats to be added: 359 seats *Plans hinge on the acquisition of approval from governments of both countries. The schedule and airplane equipment is subject to change.

Cathay Pacific Airways Boeing B747-400 (Photo provided by Cathay Pacific

Flight KIX HKG Day Aircraft Seating

capacity Flight HKG KIX Day Aircraft

Seating

capacity

UO689 1:50 5:15 Mon/Thu/Fri/Sun A320 174 MM68 1:50 5:40 Daily A320 180

MM63 8:30 11:45 Daily A320 180 CX566 1:50 6:15 Daily A333 311

CX567 9:30 12:55 Daily A333 311 AI314 7:45 12:05 Tue/Thu/Sat B787 256

CX503 10:00 13:25 Daily B773 398 CX562 7:50 12:15 Daily B744 359

NH175 10:10 13:30 Daily B767 202 UO686 9:30 13:55 Daily A320 174

CX565 11:00 16:05 Daily A333/B773 311/398 CX506 10:30 14:50 Daily B747 379

AI315 13:25 16:35 Tue/Thu/Sat B787 256 MM64 12:35 17:00 Daily A320 180

UO687 14:50 18:15 Daily A320 174 CX564 13:20 19:20 Daily A333/B773 311/398

CX507 18:25 21:45 Daily B747 379 NH176 15:25 19:45 Daily B767 202

CX561 19:20 22:40 Daily B744 359 CX502 16:35 21:00 Daily B773 398

MM67 21:20 0:35 Daily A320 180 UO688 20:30 0:55 Wed/Thu/Sat/Sun A320 174

KIX – HKG Route (2013 Winter Schedule)

Current flight schedule for Cathay Pacific

Newly added flights (from February 16, 2014)

December 26, 2013 Press Release

Cathay Pacific Airways Adding New Flights between Osaka Hong Kong for a Total of Five Flights Daily

Cathay Pacific Airways plans to add a new flight to the four flights it currently operates between Kansai International Airport (KIX) and Hong Kong International Airport (HKG), for a total of five daily flights starting from February 16, 2014. The airline plans to introduce a new flight, operating a Boeing 747-400, with a total seating capacity of 359 passengers. The airline aims to provide more choices and better convenience for customers in both Osaka and Hong Kong by adding this new flight and thereby strengthen its stance to flexibly and accurately deal with diverse passenger needs. The new flight, CX561, is scheduled to depart KIX at 7:20 pm and arrive in HKG at 10:40 pm. The return flight, CX562, is scheduled to depart HKG at 7:50 am and arrive in KIX at 12:15 pm. The new daily flight will enable travelers from Hong Kong to stay longer in Osaka while the flight from KIX extends the reach of the Cathay Pacific Group’s global network by offering a smoother transfer to locations further out from Hong Kong. This new flight will also provide an abundance of travel options and improve convenience. Nick Hays, Marketing & Sales Manager for Cathay Pacific Airways in Japan, is pleased with the addition of this new flight connecting KIX and HKG. This new flight reflects the confidence in expectations for demand, which is already brisk, from passengers in Osaka and Hong Kong, and also indicates the determination of the company’s endeavors in the Kansai area. Hays believes the five daily flights between KIX and HKG will offer travelers a wider range of flight options and an improvement in convenience, and will welcome passengers at both ends. Cathay Pacific Airways chartered its first flight to Osaka on April 1, 1960. It was the first airline to operate regular international flights to and from Osaka-Itami International Airport. At present, the airline operates four flights daily between KIX and HKG, including a flight that stops off in Taipei, Taiwan. The Cathay Pacific Airways Group, along with its sister airline Hong Kong Dragon Airlines Ltd., operates flights to and from seven airports in six major cities—Osaka, Tokyo (Narita, Haneda), Nagoya, Fukuoka, Sapporo, and Okinawa. It boasts more than 120 flights a week linking Japan and Hong Kong, the highest number among all airlines. The schedule for the newly scheduled flight is shown in the table below.

Flight Depart Arrive Departure/arrival times Schedule

CX561 Osaka Hong Kong 19:20/22:40 Daily

CX562 Hong Kong Osaka 07:50/12:15 Daily

(Currently filing for government approval, all times are local times)

Inquiries: Cathay Pacific Airways Public Relations Engo Co., Ltd.: Ms. Yuko Sato, Mr. Norito Sakamoto Tel: 03-6277-8118 Fax: 03-6277-8119

Cathay Pacific Airways website: www.cathaypacific.co.jp Cathay Pacific ticket reservation center: 0120-46-3838 (9:00-17:30 Monday-Saturday, closed on Sundays and holidays)

New Kansai International Airport Co., Ltd. http://www.nkiac.co.jp/en/index.html

January 1, 2014

Acquisition of 100% of

Osaka International Airport Terminal Shares

On December 27, 2013, New Kansai International Airport Company, Ltd. completed its acquisition of 100% of shares in acquired Osaka International Airport Terminal Co., Ltd. (OAT). The acquisition was carried out in several phases, following negotiations with existing shareholders. The NKIAC Group plans to utilize the airport terminal management and operational knowhow OAT has accrued over nearly 50 years. The group aims to embark on securing safe and efficient airport functions that facilitates the convenience of users in a unified and comprehensive fashion.

Reference

Company: Osaka International Airport Terminal Co., Ltd.

Established: July 15, 1966

President: Hitoshi Okamoto

Capital: ¥1.2 billion

Headquarters address: 1-1 Kakuda-cho, Kita-ku, Osaka (Higashi Hankyu Building)

Offices address: 3-555, Hotarugaike Nishimachi, Toyonaka City, Osaka (OAT Building)

Main businesses:

Real estate leasing: Leasing, operation and management of passenger and

cargo terminal buildings at Osaka International Airport

Product sales: Food services and product sales at passenger terminal

buildings at Osaka International Airport

Incidental businesses: Management and operation of advertising media and

business lounges