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

REVIEW OF OPERATIONS
International Passenger Operations
International passenger operations are steadily rebounding from last year’s levels, which were
depressed by a string of events including the SARS outbreak, although the rebound is slower
than we had hoped in some areas such as group flights to Southeast Asia. Revenue passengers
increased by 25.5% over the previous year’s level, or a growth of 16.6% on a paying
passenger-kilometer basis.
ACTIONS AND ACCOMPLISHMENTS IN THE TERM
Route operations
This year we aggressively built up our business in the booming
China market, inaugurating services between Tokyo and
Hangzhou, Osaka and Hangzhou, and Osaka and Tsingtao,
while in the Southeast Asia market we also added a service
between Osaka and Hanoi and worked to build demand for
these services. In conjunction with the opening of the Central
Japan International Airport, we moved flights previously
originating from or destined to Nagoya Airport to the new
facilities, while also inaugurating services to meet the needs
of customers in central Japan, such as new routes to Paris
and Guangzhou, increasing flights to Manila, Bangkok, and
Busan, and switching to larger aircraft. New aircraft in the
fleet include two Boeing 777-300ER models, improving the
competitiveness of our product offerings.
We worked to improve competitiveness by extending the
JALways model to include all Japan–Bangkok routes, Tokyo–
Kona–Honolulu, and Osaka–Brisbane–Sydney.
Marketing
To celebrate the integration of all the international routes
operated by Japan Airlines International Company under
the JAL brand, in April we ran a “JJ Integration Celebration
Campaign.” Another campaign, “Feel New Hawaii,” commemorated
the 50th anniversary of the inauguration of
service to Hawaii, showcasing Hawaii’s new attractions to
stimulate demand. In July we ran a “Power China! JAL” advertising
campaign to take advantage of increasing demand for
travel to China, as well as a “JAL China Power Up Campaign”
to encourage business demand. We packaged tours to the
Shanghai region in conjunction with the inauguration of our
Hangzhou service to whet tourist demand. In order to encourage
inward traffic, we are active participants in the Japanese
government’s “Visit Japan Campaign,” and are working to
promote tourism to Japan, not only from neighboring countries,
but from Europe, America and Australia as well.
To respond to the diverse needs of our customers with regard
to fares, we expanded our offerings of “Super Advance
Goku” fares, “Long Stay Goku” fares, and the “Web Goku”
fares which customers can purchase at our web site, and also
introduced new “Economy Saver Plus” and “Birthday Goku”
fares.
Committed to improve the quality of our products and
services, we continued the rollout of “Shell Flat Seats”, an
Executive Class amenity which provides private space, now
available on seven major European and North American routes.
In December 2004, we initiated a service on our London route
permitting passengers to connect their laptops to the Internet
in-flight and send and receive mail.
We were rewarded with a 25.5% increase over the previous
year to a total of 14.74 million passengers on international
routes across the JAL Group as a whole, with revenues up
22.1% over the previous year at ¥671.2 billion.
18 Japan Airlines Corporation