*Jetstar to start non-stop services between Nagoya & Osaka and Cairns

Jetstar, the Qantas Group's low cost carrier (LCC), will start non-stop services from Central Japan International Airport (Nagoya) to Cairns onAugust 2, and from Kansai International Airport (Osaka) to Cairns on September 8, 2007. Jetstar is taking over the services thatwere originally Qantas' (QFA), including the services from Kansai to Sydney and from Sydney via Brisbane back to Kansai beginning fromMarch 25, 2007.

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*Jetstar to start non-stop services between Nagoya & Osaka and Cairns
*Japanese and Chinese leaders agreedwith mutual exchanges of 5 million travelers
*Mexico Tourism Minister hopes the new direct flights will stimulate mutual exchanges
*HIS has received 23% more overseas travel bookings during the New Year holidays
*NAA posted decrease in midterm net income by 45.9% to 6.6 billion yen
*Charge for one A380 landing may be 924,000 yen at Narita
*A380 showed up at Narita for demonstration to airlines of Japan
*The difference of domestic passengers between JAL and ANA was wider in October

* Results of 50 major travel agencies in the first half FY2006 compiled by Ministry of Land, Infrastructure andTransportation--total revenue increased

According to the results of 50 major travel agencies in the first half of FY2006 compiled by Ministry of Land, Infrastructure and Transportation, the total revenue increased by 2.3 percent to 3,075.7 billion yen compared to the previous half year; revenue by overseas travel increased by 6.7 percent to 1,400.4 billion yen, while that by domestic travel decreased by 1.1 percent to 1,659.5 billion yen. Revenue from foreigner-inbound travel was 15.8 billion yen, down by 2.4 percent.

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* Results of 50 major travel agencies in the first half FY2006 compiled by Ministry of Land, Infrastructure and Transportation--total revenue increased by 2.3 percent
* AZA to increase Kansai-Milan routeto 5 flights per week in February 2007
* Half-year results of the JAL Group for FY2006; operating revenue decreasedby half, net balance turned a profit
* JAL to begin charter service to Marshalls in February
* SKY posted a fiscal half-year net loss of 2.6 billion yen, revising forecast of FY2006 ending March 2007 down
* JAL air transport result for September 2006
* Kanagawa Prefecture conducted survey targeting at travelers departing fromHaneda by international charter flights
* Kansai International Airport posted record-breaking ordinary income 7.9 billion yen for first half ofFY2006
* Centrair's half-year results for FY2006; sales volume in non-aviation decreased but increased in aviation

*The Ministry Deputy Director-General recognizes foreign visitors are hard to reach the annual goal

Kosuke Shibata, the Ministry of Land, Infrastructure and Transport Deputy Director-General for General Tourism Policy, mentioned forecast of foreign visitors for 2006 at a news conference: "It is difficultto achieve the goal of 7.5 million foreign visitors for 2006 with the current monthly growth trend. The annual number will probably be7.2 million. However, we will keep making every effort to increase foreign visitors to Japan as many as possible." He particularly expects that 20% increase of air transport volume between Japan and China, which is effective from the end of October this year, will encourage Chinese tourists to visit Japan.

This Week Headline
*The Ministry Deputy Director-General recognizes foreign visitors are hard to reach the annual goal
*Rakuten-ANA Travel Online provides over 10,000 accommodations
*Tourism promotion for Myanmar gets on the move in Japan
*JAL and ANA will reduce fuel surcharges on international flights next January
*ANA strengthens domestic E-ticketing service as well as international interline
*Vladivostok Air made a good start with 70% load factor on New Kitakyushu flights
*Result of domestic transport in the first half of FY2006 shows big rise in passengers on local routes
*Hiroshima resulted in double-digit growth of international flight passengers

*The task force makes up a report for "FLY & DRIVE 2007" in America

The Fly & Drive task force, under the U.S.-Japan Tourism Export Expansion Initiative Working Group for the Mainland U.S. Sub-committee, hasrecently made up a report to promote fly & drive products in mainland America, placing 2007 as the starting year for fly & drive promotion. The report toward an annual action plan proposes legal validation for fly & drive and at the same time establishmentof a safety and security support system for consumers.

This Week Headline
*The task force makes up a report for "FLY & DRIVE 2007" in America
+Products will be marketed from the first half of 2007
*JTB to establish local bases to expand selling of cruise products
*Japanese departures for September 2006 were slightly down
*ANA posted record-breaking midterm net profit for the first half of FY2006
+ANA travel business increased sales of overseas packages
*Additional international departures enable Narita to increase revenue
*Centrair expands to 388 flights per week in the winter schedule 2006
*Centrair largely expanded international cargos for the FY2006 first half
*Growth of international passengers at Kansai was boosted by foreign visitors
*SFJ suffered from midterm net loss,but expects FY2007 to turn into black