Annual Report 2005 (60 pages / 1.3MB) - JAL | JAPAN AIRLINES

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Spreading New Wings of Trust Becoming the world’s No.1 airline group in terms of both service quality and business volume 2005–2007 Medium-Term Business Plan #3 Aggressive expansion into growth markets In addition to the two structural reforms presented thus far, the 2005–2007 Medium-Term Business Plan calls for a focus on expanding growth markets. We will tailor our strategy here for each segment of our business, aggressively expanding our business in China and other Asian countries, where rapid growth in international passenger traffic is expected, improving convenience for our domestic passengers by improving service, and aggressively developing growth markets within our cargo business. 14 Japan Airlines Corporation
Segment-by-Segment Strategies for Growth Markets International passenger operations We will expand aggressively in China and Asia. In addition to developing the largest Japan–China network, which as of July 1, 2005 already flies 247 flights per week by 30 routes to 13 destinations, with 20 connections, during the period of the Medium-Term Business Plan we will grow supply 135% on our China routes and 121% on our Asian routes. Domestic passenger operations JEX operations are to be grown from eight planes in fiscal 2004 to 19 in fiscal 2007. In addition to ensuring our costs and coverage are competitive, we will raise service quality and push forward with e-marketing to improve customer convenience. Our goal is that use of automated check-in should increase by 15–20% during the period of the Medium-Term Business Plan. Cargo operations We will grow our cargo operations, targeting ¥300 billion in revenues. To achieve this aggressive growth plan we will enter growth markets such as China and domestic overnight flights. Operating income by business segment (scenario) (¥ billion) 60 50 40 30 20 10 0 -10 FY05 FY06 FY07 International passenger operations Domestic passenger operations Cargo operations The graph above shows the JAL Group’s projections for operating income over the next three years, broken down into our three principal business segments. We expect international passenger operations to once again post a loss in fiscal 2005. Thanks to our implementation of structural reforms, however, the segment should return to the black ink in fiscal 2006, and we forecast a gradual growth in operating income from that term onward. If all goes as planned, the scheduled introduction of new passenger aircraft models from fiscal 2008 is projected to generate additional earnings thanks to improved operational efficiency. Ensuring a smooth check-in process is our mission Our work mainly involves passenger ticket issuance and check-in procedures, but also includes other customer services, such as assistance in finding the right departure gate. Our work at the check-in counter, and our behavior toward our customers, are particularly important, as this is where they first meet JAL staff. In the near future, JAL will be introducing new check-in methods involving IC cards and online services, to make the whole process more convenient. Our primary mission is to ensure that the check-in process goes smoothly, so that our customers are never kept waiting. Passenger Traffic Kumiko Yonezawa JAL Sky Service Co., Ltd. 15
Page 1 and 2: Japan Airlines Annual Report 2005 Y
Page 3 and 4: JAL GROUP OVERVIEW Comprising 288 s
Page 5 and 6: MESSAGE FROM THE GROUP CEO REVIEW O
Page 7 and 8: We will carry out the Medium-Term B
Page 9 and 10: much less unaffected. Moving ahead,
Page 11 and 12: Vision: What JAL Group strives to a
Page 13 and 14: Managing international passenger op
Page 15: Growing and Continuing Impact of St
Page 19 and 20: Basic Management Strategy Basic ini
Page 21 and 22: Revenue analysis: international pas
Page 23 and 24: Revenue analysis: domestic passenge
Page 25 and 26: Related Operations Many Group compa
Page 27 and 28: MANAGEMENT’S REVIEW AND ANALYSIS
Page 29 and 30: Consolidated total stockholders’
Page 31 and 32: Net cash used in investing activiti
Page 33 and 34: Liabilities and stockholders’ equ
Page 35 and 36: CONSOLIDATED STATEMENTS OF STOCKHOL
Page 37 and 38: Thousands of U.S. dollars Millions
Page 39 and 40: e. Property and equipment Property
Page 41 and 42: Proceeds from sales of securities c
Page 43 and 44: The significant components of defer
Page 45 and 46: 11. Commitments and Contingent Liab
Page 47 and 48: . Operating revenues from overseas
Page 49 and 50: CONSOLIDATED SUBSIDIARIES Japan Air
Page 51 and 52: JALPAK INTERNATIONAL MICRONESIA, IN
Page 53 and 54: JALUX LIFE DESIGN INC. OFFICIAL FIL
Page 55 and 56: MOSCOW 4th Floor, GALS Tower, 1st T
Page 57 and 58: International Routes Domestic Route
Page 59 and 60: INVESTOR INFORMATION Company Name:

Annual Report 2005 (60 pages / 1.3MB) - JAL | JAPAN AIRLINES

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