MESSAGE FROM THE PRESIDENT“Unless flight safety is ensured, trust is irrecoverable.”Greetings to our stockholders and investors.I have recently been appointed as President and CEO of JapanAirlines, and I hope this message fi nds you all well. We atJapan Airlines thank you for your continued warm support.During the term ended March <strong>2006</strong>, the operating environmentsurrounding the <strong>JAL</strong> Group was extremely harsh.Passenger demand on international fl ights was slow to recover,and following a series of safety-related occurrences, demandon domestic fl ights also turned sluggish. Meanwhile, fuel oilprices continued their upward trend, pushing fuel costs higher.As a result, the Group posted a net loss of ¥47.2 billion on aconsolidated basis. Under these conditions, the managementhas reluctantly decided not to pay a dividend for the termunder review. We would highly appreciate your understandingregarding this matter.As outlined in our medium-term business plan, we designatedfi scal <strong>2006</strong> as the year for achieving <strong>JAL</strong>’s rebirth witha redoubled commitment to putting top priority on safety anda customer-oriented approach. We have worked hard toreform our corporate culture and raise employee awarenessrelating to safety issues and services, so as to regain the trustof our stockholders and the general public. Our goal is tocontinue being our customers’ airline of choice, and we willmake our utmost efforts to achieve this goal.As a fi rst step, we established Corporate Safety Divisionin April to strictly supervise the implementation of safetymeasures. We further strengthened our safety assurancesystem by assigning dedicated safety supervisors to each areaof operations and investing them with wide-ranging strongauthority. In addition, we encourage each and every employeeto make special efforts to improve safety and service quality,and request that they carry out their duties keeping in mind thecustomer’s perspective. We urge them to ask themselves, “Whatif I or other members of my family were passengers?”Through our implementation of the current medium-termbusiness plan, we have established a new vision for theGroup: The <strong>JAL</strong> Group is a global player bridging the worldwith safety, security and quality as our top priorities. The newexecutive offi cers and the Company’s entire staff are workingtogether – making utmost efforts – to maintain the highestsafety standards, and thereby ensure that all passengers mayrelax and enjoy their fl ights. We have always put a priority onoffering customer-oriented services that bring you maximumsatisfaction. In the future, we will reinforce our efforts toprovide customers with truly satisfying services. As part ofthese efforts, <strong>JAL</strong> signed the letter of invitation in June to jointhe world’s leading quality global airline alliance oneworldin early 2007.As outlined in our medium-term business plan, we areaccelerating fl eet downsizing by making the shift from largesized aircraft to medium and small sized aircraft. For the purposeof investment to this downsizing, we increased capital througha global offering of 750,000,000 shares in July-August. Throughthis offering, we raised ¥148,500 million in capital, which willgreatly contribute to the improvement in our balance sheet.In October, the <strong>JAL</strong> Group will integrate two of its majoroperating companies, enabling us to effectively integratethe holding company and the operating company. I am surewe will be able to speed up decision making and enhancemanagement effi ciency under the new governance system. Weare confi dent that, by working to deliver services that place thehighest priority on safety and customer satisfaction, <strong>JAL</strong> fulfi llits important role of being the “A Global Player.”We appreciate the continued support of our stockholdersand investors.September <strong>2006</strong>4
Profi le of Mr. Haruka Nishimatsu,President and CEO1948 Born in Hamamatsu, Shizuoka Prefecture1972 Joined Japan Airlines Company, LTD.After spells in the Corporate Planning Department,the Frankfurt Branch, and the Finance Department,Mr. Nishimatsu was appointed as an executiveoffi cer in charge of Finance in 20032005 Appointed Board of Director<strong>2006</strong> Appointed President and CEOHobbies: Visiting sites of historical interest, Golf5
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