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

Cargo Operations
Demand for international cargo services jumped sharply from the previous year, supported
by the strong world economy, robust economic activity in the U.S. and the continued dynamic
growth of the Chinese economy. Demand for transporting digital appliances such as digital
cameras and DVD-related devices continued last year’s striking growth.
ACTIONS AND ACCOMPLISHMENTS IN YEAR UNDER REVIEW
Scheduled operations
Scheduled international cargo operations saw increased flights
to Shanghai starting April 2004, and a new service between
Tokyo and Guangzhou starting in November, illustrating our
expansion of service to China, whose energetic growth is expected
to continue even into the medium term. Moreover, in
conjunction with the opening of the Central Japan International
Airport in February 2005, we launched the first cargo service
from central Japan to the U.S., to capture the demand from one
of the Japanese economy’s premier manufacturing regions.
Our deployment of two Boeing 747-400 cargo freighters
to increase capacity was an industry first in Japan. The fuel
efficiency of the new model gives it a 19 ton greater takeoff
weight and allows it to fly more than 20% further than the
10 Boeing 747-200 freighters which the JAL Group currently
owns. Together with the new model’s improved temperature
management capabilities, this means we can deliver more
of our customers’ precious cargoes more safely and across
greater distances.
in the first half, boosted by economic recovery continuing
from the previous year, but then slowed due to more flight
cancellations caused by the typhoons and lower shipments
of agricultural products originating from poor weather, compounded
by the sense that the economy was stagnating.
Total transport volume on international cargo routes thus
rose 7.1% year-on-year to 4,681.72 million ton-kilometers,
with revenues up 12.0% year-on-year to ¥171.3 billion. Total
transport volume on domestic cargo routes rose 4.9% yearon-year
to 394.56 million ton-kilometers, with revenues down
0.9% to ¥30.5 billion.
FUTURE DEVELOPMENTS AND STRATEGY:
MEDIUM-TERM BUSINESS PLAN
We will aggressively develop growth markets such as China
and other Asian countries, and enter the domestic overnight
cargo market, thus expanding our existing core areas.
In parallel with upgrading our existing B747s to B747-400s,
we will introduce medium-sized freighters, ensuring our capacity
can meet the growth in demand for international cargo.
Marketing
Internationally, the cargo business was strong, driven by exports
to all regions, with business booming on U.S. routes,
led by automotive-related demand, European routes showing
robust demand for digital appliances and seasonal demand
for air conditioners through the summer, and Asian routes
enjoying strong demand for electronic components and semiconductor
manufacturer equipment.
Domestically, the cargo business performed relatively well
22 Japan Airlines Corporation