Opportunities and Challenges for Japan AirlinesOpportunities and Challenges for Japan AirlinesDecember 6 - 7, 2012December 6 - 7, 2012

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1. JAL Update

2. Product Update

3. Summary

4. Appendix

Agenda

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• JAL is a key travel partner with numerous International companies including many Fortune 500 companies. The airline currently holds agreements with 65 of the top 100 Corporate Travelers by air volume*

• Posted net profit of US $2.4 Billion for 2011 Fiscal year (Apr ’11 – Mar ’12)US $1.2 Billion for 1st half 2012 (Apr ’12 – Sep ’12)

• Facilitates global trade by operating 22,000+ flights a month, and has been expanding its International Network with San Diego, Boston, & Helsinki.

* Booked in the USA as ranked by Business Travel News – September 2011 edition

• Japan Airlines (JAL) flies to more than 85 destinations in almost 20 countries and territories. The airline has provided international service between the U.S. and Japan for over 58 years.

Japan Airlines: A Quick Introduction

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• FH12 net profit was 1.2bil USD (Apr – Sep 2012)

• Re-listing of shares in Sep 2012

• More competitive cost structure, best practices

• #1 airline in world operating profit for 2010, 2011

Updates for 2012

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• BOS-NRT service commenced Apr. 22

• SIN-NRT from Oct. 28, 2012

• SAN-NRT service from Dec. 2, 2012

• HEL service from Feb. 25, 2013 (scheduled)

• Also MOW, BJS in 2012

• 1st carrier to utilize 787 in USA

• JAL has 65 787’s on order (45) option (20)

787 Updates for JAL Schedules

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• Visa entry requirements

• Security issues

• High aviation taxes and fees

• Lack of recognizing the value of foreigner visitors

Government Challenges

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• Rising fuel costs and the vision for an alternative

•  Added competition from airlines and growing alliance networks

•  Low cost carrier growth worldwide

•  More government regulation and taxes

•  Joint business and alliance evolution--how will business be done 

Specific Airline Challenges in the Future

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Joint business route with

*All flights operated by Japan Airlines; codeshare by American Airlines. *All flights/schedules are subject to change.

New Route Summary

All times are localFlight No. Operation

San Diego Tokyo (Narita)11:30 16:30 (Next day)

Tokyo (Narita) San Diego17:10 9:45

Flight ScheduleJL065 / AA5907

Mo, We, Fr, Su

JL066 / AA5906

Mo, We, Fr, Su

San Diego = Tokyo Nonstop Launched: December 2, 2012From March 1, 2013, JAL will increase the frequency to once daily.

All times are localFlight No. Operation

Boston Tokyo (Narita)11:50 15:30 (Next day)

Tokyo (Narita) Boston11:40 10:00

Flight ScheduleJL007 / AA5921

Daily

JL008 / AA5922

Daily

Boston = Tokyo Nonstop

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BeijingSeoulTaipeiManilaSingaporeHanoi

ShanghaiPusanKaohsiungBangkokHong KongHo Chi Minh City*

Same Day Connectivity at Narita to:

Overnight Stay in Tokyo Required for:GuangzhouJakartaNew Delhi

DalianKuala LumpurStrong Japan Domestic

Connectivity too:Okinawa, Osaka (Itami), Fukuoka, Sapporo, & NagoyaMore connections via Tokyo Haneda Airport

* Codeshare Flight. JL operated Flight requires overnight stay* Codeshare Flight. JL operated Flight requires overnight stay

JAL’s Tokyo Narita Hub: San Diego’s Gateway to Asia

All Schedules Subject to ChangeAll Schedules Subject to Change

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JAL Summary

• Financial reorganization successful

• Post-earthquake recovery strong

• JL/AA joint business evolving very well

• 787 introduction on Apr. 22, 2012 BOS-NRT

• New SAN-NRT Dec. 2, 2012

• Well positioned for future

AppendixAppendix

Additional Information Additional Information About JALAbout JAL

http://www.ar.jal.com/arl/en/http://www.ar.jal.com/arl/en/

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• Seat Name: JAL SUITE• Configuration: 1-2-1 (8 seats)

• Bed length: Approx. 78.5 inch (199 cm)• Max. Bed width: Approx. 33 inch (84 cm)

• TV screen size: 23 inch

Features• Excellent functionality with a sense of luxury

in one of the largest First Class spaces available in the skies today.

• Refined woodgrain finishing that evokes an ambience similar to that of a personal study

or bedroom.• Newly-introduced liquid-crystal (LCD)

touch-panel hand-held controller.

Sample meals

• Seat Name: JAL SKY SUITE• Configuration: 2-3-2 (49 seats)

• Max. Bed length: Approx. 74 inch (188 cm)• Max. Bed width: Approx. 25.5 inch (65 cm)• Width at base: Approx. 21 inch (53 cm)

• TV screen size: 23 inch

Features• A highly-private space with plenty of legroom,

furnished with a fully flat bed and a host of first-class amenities and functionalities.

• Unobstructed aisle access for every seat.• Large swivel table for more flexibility in

movement and ample storage space for various items.

• Partition can be electronically lowered to chat with traveling companion if you wish.

Sample meals

• Seat Name: JAL SKY PREMIUM• Configuration: 2-4-2 (40 seats)• Seat pitch: Approx. 42 inch (107 cm)*• Seat width: Approx. 19 inch (48 cm)*• TV screen size: 12.1 inch

Features• A substantial increase in seat pitch (distance

between the seats) by as much as 4 inch (10 cm), providing more leg-space than ever before.

• Increased seat-slide by up to approx. 2.8 inch (7 cm)• 12.1 inch personal touch-panel TV screens are 35%

wider than previous Premium Economy product and one of the widest in its class.

• Retained the fixed-back seat feature of its predecessor, providing the same undisturbed space

even when a passenger seated in front reclines.• Center divider between seats at head-level to provide

greater privacy.• Three-step adjustable footrest.

*Specifications for front-row seats are different.

JAL’s 787 – Executive ClassExperience the Ultimate in Japanese Hospitality

Designs are subject to change

http://www.jal.co.jp/jal_panorama/787_kinai/

Boston

San Diego

Helsinki

Boeing 787: Future service introduction status

- Tokyo (Narita) – Singapore, JL719/712,JL711/710

14 services a week will operate from Narita from the 28th of October, and departing Singapore from the 29th of October.

Schedule and aircraft types are subject to change without notice.

JAL’s International Network

1. Domestic Connectivity2. Travel Opportunity Cost Savings

Haneda MapHaneda Map

• Lounges offer 4,000 square meters of space

• Menus will be adjusted to reflect the changing flavors of the

seasons

• Stylish bar-areas include a bartender to serve a wide

selection of drinks

• Private shower rooms

• Massages by a resident professional masseuse

(advanced reservations required)

• Equipped with high-speed wireless LAN connection for

Internet access

• Features a Children`s Playroom for families

JAL First Class and Sakura LoungesJAL First Class and Sakura LoungesNarita Airport – Terminal 2Narita Airport – Terminal 2

Pacific Joint Business with AA

• JL and AA Partners across the Pacific • More options for the customer

• Harmonized pricing and discounts• Joint contracting

• Earn AAdvantage miles on JL flights• SAN-NRT flight complies with “Fly America” rules if ticketed on

AA

Thank You for Your Partnership!