*Reduction of Narita landing fee may be determined by late May

Narita International Airport Co President and CEO Masahiko Kurono recently said that he hopes to decide how much the airport can reduce landingfee until the annual assembly of International Air Transport Association (IATA) in Tokyo from May 29 to 31 this year. Although the airport company initially plans to enter negotiation on reduction of landing fee after the financial result for FY2004 is officially determined in June, Kurono said, "We cannot wait for the time. I think we should start negotiation just after the preliminary result is released." The company intends to show "an answer"to the world' airlines representatives in Tokyo as IATA has requested Narita to take an action on reduction of landing fee withinFY2005.

This Week Contents
Headline
*Reduction of Narita landing fee may be determined by late May
Sapce
*The 7th H-IIA was successfully lifted off to carry MTSAT
Airport
*Inchon surpasses Narita in transits on routes between Asia/Pacific and Europe
*Narita and Frankfurt Airport agree for reciprocal cooperation
*Five percents more passengers used Kansai for January
Airline
*UAL begins serving Centrair-Taipei flights in April
*NCA decides to introduce additional B747-400F
Column "COCKPIT"
"It's a view of life and death"

*The Minister says that CJIA does not give a negative impact to Kansai

The Minister of Land, Infrastructure and Transport Kazuo Kitagawa said at a news conference on February 15, "I don't think the open of Central Japan International Airport (CJIA) give a negative impact to the financial condition of Kansai International Airport." While Kitagawa highly appreciating CJIA in terms of the facilities andthe services to passengers, he emphasized, "Demand of international flights will certainly grow. In this sense, Kansai is still needed. I would like everyone to understand that CJIA just takes over flights for Nagoya Airport and adds some more flights."

This Week Contents
Headline
*The Minister says that CJIA does not give a negative impact to Kansai
Airport
*Centrair opens with 294 international flights weekly
*Kansai to lure domestic flights with discount ideas
Airline
*JAL has a 40% share of international flights at CJIA
*ANA and Air China expand code-sharing operations to all flights of both
Column "COCKPIT"
Military study as common sense

*JAL's four companies will be unified into one JAL within FY2006

JAL Group Chairman and CEO Isao Kaneko revealed at a news conference on February 4 that the holding company Japan Airlines Co., JAL International, JAL Japan and JAL Sales will be integrated into one JAL by the end of FY2006. JAL will include the plan into the three-years Midterm Corporate Plan from FY005 to FY2007, which will be released in early March this year.

This Week Contents
Headline
*JAL's four companies will be unified into one JAL within FY2006
Industry
*Airbus leverages its business for the Japanese market under a new system
*FHI builds two new facilities for the B787 program
Airline
*JAL posted net profit of 79.2 billion yen for the 3rd quarter
*JAL will increase its Chicago flights to meet demands between America and China
*JAL air transport result for December 2004
Space
*SAC approves launch of the 7th H-IIA to carry MTSAT-1R
Column "COCKPIT"
New Kitakyushu Airport

*ANA aims at annual operating profitof 90 billion yen for FY2007

*ANA aims at annual operating profit of 90 billion yen for FY2007

ANA Group released a three-years Midterm Corporate Plan FY2005-FY2007 on February 1 this year, placing the three years as "Road to Haneda"to prepare for the Haneda-re-expansion in FY2009. Focusing on improvement of a financial structure and a business strategy for growth, the Plan embodies more efficient fleet arrangement, higher profitability and further cost reduction to strengthen the competitive edges.

This Week Contents
Headline
*ANA aims at annual operating profitof 90 billion yen for FY2007
Airline
*Airtransse will begin intra-Hokkaido flight services in March this year
*JAL will purchase 30 B737 Next Generations
*ANA revises upward its financial outlook for FY2004 full year
*ANA ties up with South African for FFP
Airport
*Kansai marked the most international taking-offs and landings ever
Industry
*KHI slightly increased sales of theAerospace business
Column "COCKPIT"
China needs more and more pilots