JAL Group announces route, flight frequency and fleet plans for FY2010

JAL has restructured its overall network with the clear objective of returning to profitability as swiftly as possible by creating a solid business model that can withstand the fluctuations in economic conditions and by generating profits without overly relying on future traffic demand. This plan includes the retirement of the Boeing 747-400 and Airbus 300-600 aircraft by the end of this fiscal year, bold withdrawal from several overseas regions, and the drastic contraction in the size of operations. It is formulated to achieve within one year, substantial reductions in the airline's fixed costs, a target which was initially planned to be accomplished over a period of 3 years.

The airline has decided to discontinue services on 15 international routes with 86 weekly roundtrip flights, as well as on 30 domestic routes with a maximum of 58* daily roundtrip flights. Totaling the changes made since fiscal year 2009, JAL will end operations on 28 international routes with the closure of 11 overseas bases while domestically, 50 routes will be terminated along with 8 offices. The international and domestic passenger capacity (measured in available seat kilometer) will as a result be reduced by 40% and 30% respectively compared to levels in fiscal year 2008.

*56 roundtrip flights if excluding seasonally-operated flights

The extent to which the route and flight frequency plan has been streamlined is vital to achieving a swift revival of the JAL Group. JAL seeks the understanding of its customers who will be inconvenienced by the changes announced.

NOTE: The plans listed hereafter are subject to government approval.

A. INTERNATIONAL PASSENGER

While the overall scale of the airline's international passenger operations will shrink by 40%, JAL will greatly expand the use of Haneda airport for international flights to maintain a global network with a focus on pivotal routes that can yield higher business demand.

Strengthening Narita Airport's Hub Function

JAL will leverage on Narita airport as a global hub that serves excellently as a link between North America and Asia, and through detailed planning of flight schedules, provide transit passengers with much smoother transfers and convenience. Furthermore, with the use of JAL's feeder services, it is convenient for passengers to connect between international flights at Narita and key domestic locations in Japan.

Strengthening of International Flights at Haneda

Capitalizing on Haneda airport's strategic location, Japan Airlines plans to almost triple the number of international flights operating out from the airport that is conveniently situated in metropolitan Tokyo, from the current 5 daily flights to 14. In addition to the current short-haul flights within Asia operating during the convenient afternoon time belt, JAL intends to utilize late night and early morning slots at the airport to launch new routes to San Francisco, Honolulu, Paris and Bangkok. JAL aims to construct a well-balanced network by teaming high-traffic services from Haneda to the Americas, Europe and Asia, with its comprehensive connections to regions throughout Japan.

Options at Kansai, Osaka and Chubu, Nagoya

While JAL maintains its forte in operating short-haul Asia flights and flights to Honolulu from Kansai and Chubu airports, the airline plans to advance with the use of smaller aircraft to improve profitability. The aircraft configuration of Boeing 737-800 on the thriving Kansai=Gimpo (Seoul) route however, will be changed from a 144-seater to one with a capacity for 176 in order to capture the healthy demand on that rotue.

A1. Route suspension

Route Details Date Effective Remarks

Narita (Tokyo) = Sao Paulo (via New York) Suspension of 2 weekly flights Sep 30, 2010 Closure of Sao Paulo office

Narita = Amsterdam Suspension of 7 weekly flights Sep 30, 2010 Closure of Amsterdam office

Narita = Milan Suspension of 4 weekly flights Sep 30, 2010 Closure of Milan office

Narita = Rome Suspension of 3 weekly flights Oct 1, 2010 Closure of Rome office

Narita = Brisbane Suspension of 7 weekly flights Sep 30, 2010 (Dep. from Narita)

Oct 1, 2010 (Dep. from Brisbane) Closure of Brisbane office

Narita = Denpasar (Bali) Suspension of 7 weekly flights Oct 1, 2010 Closure of Denpasar office

Narita - Kona - Honolulu - Narita Suspension of 7 weekly flights Oct 30, 2010 Closure of Kona office

Kansai (Osaka) = Denpasar (Bali) Suspension of 7 weekly flights Sep 30, 2010 (Dep. from Kansai)

Oct 1, 2010 (Dep. from Bali) Closure of Denpasar office

Kansai = Guam Suspension of 7 weekly flights Oct 1, 2010 (Dep. from Kansai)

Oct 2, 2010 (Dep. from Guam)

Kansai = Hong Kong Suspension of 7 weekly flights Oct 1, 2010

Kansai = Guangzhou Suspension of 3 weekly flights Oct 1, 2010

Kansai = Beijing Suspension of 7 weekly flights Oct 1, 2010

Chubu (Nagoya) =Bangkok Suspension of 7 weekly flights Oct 1, 2010

Chubu = Guangzhou Suspension of 4 weekly flights. Oct 1, 2010

*The above 14 route suspensions excludes the termination of Narita=San Francisco once the Haneda=San Francisco route commences.

** The number of closures of overseas offices in this release is 7. 4 other office closures have already been announced - Hangzhou, Qingdao, Xiamen, Mexico City.

A2. Flight frequency reduction

Route Details Date Effective Affected Flights

Narita = Incheon (Seoul) Decrease from 21 to 14 weekly flights Oct 1, 2010 JL955/956

Narita = Guam Decrease from 14 to 7 weekly flights Oct 1, 2010

(Dep. from Narita)

Oct 2, 2010

(Dep. from Guam) JO949/940

A3. Route suspension and flight frequency reductions upon commencement of Haneda services

Route Details Date Effective Affected Flights

Narita = San Francisco Service suspension of 7 weekly flights Oct 31, 2010

Narita = Beijing Decrease from 14 to 7 weekly flights Oct 1, 2010 JL863/864*

Narita = Hong Kong Decrease from 14 to 7 weekly flights Oct 31, 2010 JL731/732

Narita = Taipei Decrease from 21 to 14 weekly flights Oct 31, 2010 JL801/806

*Subject to approval by civil aviation authorities of Japan and China

**Total number of flight reductions on the above 5 routes in tables A2 and A3 is 35 per week.

A4. Inaugural routes and flight frequency increase (from October 31, 2010)

Route Details Remarks

Haneda (Tokyo) = Gimpo (Seoul) Increase from 14 to 21 weekly flights

Haneda = Beijing Increase from 7 to 14 weekly flights Subject to approval by civil aviation authorities of Japan and China

Haneda = Hongqiao (Shanghai) Increase from 7 to 14 weekly flights

Haneda = Hong Kong Increase from 3 to 7 weekly flights

*Change of flight timings from late night to afternoon. Dates of temporary suspension:

Sep 30 - Oct 30. (Haneda dep.)

Oct 1 - Oct 30. (Hong Kong dep.)

Haneda = Songshan (Taipei) Increase from 0 to 14 weekly flights New route

Haneda = San Francisco Increase from 0 to 7 weekly flights New route

Haneda = Honolulu Increase from 0 to 7 weekly flights New route

Haneda = Bangkok Increase from 0 to 7 weekly flights New route

Haneda = Paris Increase from 0 to 7 weekly flights New route

A5. Aircraft change

Route Current Aircraft Aircraft after change Date Effective Affected Flights

Narita = Vancouver 747-400 777-200ER Oct 1, 2010

Narita = Honolulu 747-400 767-300ER Oct 1, 2010 JO072 / 071

Oct 31, 2010 JO074 / 073

Narita = Bangkok 777-200ER 767-300ER Oct 1, 2010 (Dep. from Narita)

Oct 2, 2010 (Dep. from Bangkok) JO707/ 708

Narita = Singapore 777-200ER 767-300ER Oct 1, 2010 (Dep. from Narita)

Oct 2, 2010 (Dep. from Singapore) JL711 / 712

Narita = Shanghai 767-300ER 737-800 Oct 1, 2010 JL877 / 874

Narita = Beijing 767-300ER 737-800 Oct 1, 2010 (Dep. from Narita)

Oct 2, 2010 (Dep. from Beijing) JL869 / 860

Haneda = Hongqiao (Shanghai) 777-200ER 767-300ER Oct 1, 2010

Haneda = Gimpo 747-400 777-200ER Oct 1 to Oct 30, 2010 JL091 / 092

777-200ER 767-300ER Oct 31, 2010 JL093 / 094

Kansai = Honolulu 747-400 767-300ER Oct 31, 2010

Kansai = Shanghai 767-300ER 737-800 Oct 1, 2010 JL891 / 894

Chubu = Honolulu 747-400 767-300ER Oct 1, 2010

Chubu = Shanghai 767-300ER 737-800 Oct 1, 2010

B. DOMESTIC PASSENGER

Aimed at improving profitability of the business in the face of low traffic demand, domestic passenger operations will be reduced by 30% in capacity, achieved through flight discontinuations and frequency reductions on underperforming routes and by means of using smaller, more efficient jets.

B1. Route suspension

Route Details Date Effective Remarks Operator

Chubu (Nagoya) = Sendai Suspension of 2 daily roundtrip flights. Oct 1, 2010 JEX

Chubu = Aomori Suspension of 2 daily roundtrip flights. Oct 31, 2010 JAL /

J-AIR

Chubu = Kagoshima Suspension of 3 daily roundtrip flights. Oct 31, 2010 JEX

Komaki (Nagoya) = Obihiro Suspension of 1 daily roundtrip flights. Oct 31, 2010 JAL /

J-AIR

Komaki = Yamagata Suspension of 1 daily roundtrip flights. Oct 31, 2010 J-AIR

Komaki = Fukuoka Suspension of 5 daily roundtrip flights. Oct 31, 2010 J-AIR

Komaki = Nagasaki Suspension of 1 daily roundtrip flights. Oct 31, 2010 J-AIR

Komaki = Akita Suspension of 2 daily roundtrip flights. Mar 1, 2011 J-AIR

Komaki = Matsuyama Suspension of 2 daily roundtrip flights. Mar 1, 2011 J-AIR

Komaki = Niigata Suspension of 2 daily roundtrip flights. Mar 27, 2011 Closure of Komaki office in Nagoya J-AIR

Komaki = Kochi Suspension of 2 daily roundtrip flights. Mar 27, 2011 J-AIR

Komaki = Kumamoto Suspension of 3 daily roundtrip flights. Mar 27, 2011 J-AIR

Sapporo = Yamagata Suspension of 1 daily roundtrip flights. Oct 31, 2010 J-AIR

Kansai (Osaka) = Fukuoka Suspension of 2 daily roundtrip flights. Oct 31, 2010 J-AIR

Itami (Osaka) = Misawa Suspension of 1 daily roundtrip flights. Oct 31, 2010 JAL /

J-AIR

Itami = Matsuyama Suspension of 5 daily roundtrip flights. Oct 31, 2010 JAC

Hiroshimanishi = Miyazaki Suspension of 1 daily roundtrip flights. Oct 31, 2010 Closure of Hiroshimanishi office JAC

Hiroshimanishi = Kagoshima Suspension of 3 daily roundtrip flights. Oct 31, 2010 JAC

Kagoshima = Okayama Suspension of 2 daily roundtrip flights. Oct 31, 2010 JAC

Kagoshima = Takamatsu Suspension of 1 daily roundtrip flights. Oct 31, 2010 JAC

Naha (Okinawa) = Matsuyama Suspension of 1 daily roundtrip flights. Oct 31, 2010 JTA

Sapporo = Izumo Suspension of 1 daily roundtrip flights. Mar 27, 2011 Operated annually during July and August only. JAL /

J-AIR

Sapporo = Tokushima Suspension of 1 daily roundtrip flights. Mar 27, 2011

Sapporo = Kushiro* Suspension of 6 daily roundtrip flights. To be excluded from JAL Group operations* HAC

Sapporo = Hakodate* Suspension of 1 daily roundtrip flights. Operated annually from December to March only. HAC

Okadama = Hakodate* Suspension of 3 daily roundtrip flights. Closure of Okadama office HAC

Okadama = Kushiro* Suspension of 1 daily roundtrip flights. HAC

Hakodate = Asahikawa* Suspension of 1 daily roundtrip flights. HAC

Hakodate = Kushiro* Suspension of 1 daily roundtrip flights. HAC

Hakodate = Okushiri* Suspension of 1 daily roundtrip flights. Closure of Okushiri office HAC

*The JAL Group is considering to reduce its stake in HAC following which HAC operated flights will not be considered part of JAL Group operations.

** Operators: JTA - Japan TransOcean Air, JEX - JAL Express, JAC - Japan Air Commuter, RAC - Ryuku Air Commuter

B2. Flight frequency reduction (from October 1, 2010)

Route Details Remarks Operator

Kansai = Fukuoka Decrease from 2 to 1 daily roundtrip flights Service suspension from Oct 31, 2010. JAL / J-AIR

Kansai =Sapporo Decrease from 5 to 3 daily roundtrip flights

Kansai = Naha Decrease from 5 to 4 daily roundtrip flights

Sapporo = Memanbetsu Decrease from 4 to 3 daily roundtrip flights JAL / J-AIR / HAC

Sapporo = Aomori Decrease from 2 to 1 daily roundtrip flights 2 daily flights from Oct 31, 2010. JAL / J-AIR

Chubu = Sapporo Decrease from 6 to 4 daily roundtrip flights

Chubu = Kagoshima Decrease from 3 to 1 daily roundtrip flights Service suspension from Oct 31, 2010. JEX

Komaki = Akita Decrease from 2 to 1 daily roundtrip flights 2 daily flights from Oct 31, 2010.

Service suspension from Mar 1, 2011. JAL / J-AIR

Komaki = Matsuyama Decrease from 2 to 1 daily roundtrip flights 2 daily flights from Oct 31, 2010.

Service suspension from Mar 1, 2011.

Komaki = Fukuoka Decrease from 5 to 4 daily roundtrip flights Service suspension from Oct 31, 2010.

Komaki = Kumamoto Decrease from 3 to 2 daily roundtrip flights 3 daily flights from Oct 31, 2010.

Service suspension from Mar 27, 2011.

Fukuoka = Naha Decrease from 6 to 5 daily roundtrip flights JAL / J-AIR / JTA

Fukuoka = Sendai Decrease from 3 to 2 daily roundtrip flights JAL / J-AIR

* Flight frequency reduction plans for beyond October 31 is planned to be announced at the end of August 2010.