NAA increased revenue and profit despite slight reduction of passengers

Narita International Airport Co. (NAA) released the FY2005 midterm financialresult on November 18, reporting net profit largely increased to 12,183 million yen from 1,600 million yen a year ago. Consolidated operating revenue for the first half was up 2.8% to 87,786 million yen over the same period last year mainly because of increases of tenant and leasing fee and addition of full revenue from NAA Retailing, which has begun its business since July 2004.

Although NAA reduced operating revenue from the airport operation business because of 0.9% reduction of passengers for the first half of FY2005, it could fully offset the reduction by the growth of revenue fromthe non-aviation businesses. NAA Retailing is expected to increase revenue further after open of the South Wing in the First Passenger Terminal next year.

This Week Contents
Headline
NAA increased revenue and profit despite slight reduction of passengers
Airport
*Narita South Wing will open on June 2 next year
*Narita reduced passengersfor four consecutive months
Airline
*Haneda-Kimpo charters areincreasing individual passengers
*JAL selects GEnx for its 30 Boeing 787s
*JAL becomes the first customer for Boeing AHM in the world
*JAL air transport result for September 2005
* JAL air transport resultfor the first half of 2005
*Western Japan commuters carried 5.9% more passengers for the first half
Industry
*Lockheed Martin demonstrated F/A-22 cockpit in Tokyo
*IHI acquired 16.9% more order amounts for the first half of FY2005
Column "COCKPIT"
Female captain for P3C

Centrair upwardly revises financial outlook for a full year of FY2005

Central Japan International Airport Co. announced on November 16 to have revised upward its financial outlook for a full year of FY2005 ending March 31 next year, thanks to higher passenger demand related to the Aichi Expo than originally expected. According to the revised financial outlook, the airport company has re-estimated operating revenue at 52.3 billion yen, increasing from originally 51.3 billion yen. Also, it has revised upward to ordinary profit of 1,100 millionyen from ordinary loss of 1,100 million yen originally and to net profit of 900 million yen from net loss of 1,100 million yen originally.

The company initially aimed to accomplish single-year profit around five years after the opening year. However, it will accomplish the target in the first fiscal year.

This Week Contents
Headline
Centrair upwardly revises financial outlook for a full year of FY2005
Airline
*ANA CEO is against JAL's code-sharing agreements with THA and ANZ
+ANA pays attention to theSKY's experiment to become a real LCC
*SKY has revised downward the financial outl0ok for a full fiscal year
*SKY posted net profit of 1,027 million yen for the first half
*NCA has ordered additional 14 B747-8 freighters
Airport
*Kansai already posted more ordinary income than the full year target
*Kansai exceeded 200 million passengers in the 11th year
+International flight passengers reduced by 2% for October
Industry
*FHI increased sales of the aerospace business
Column "COCKPIT"
Boom of free gift airplanetoys

JAL invests 60 billion yen for safe operation to recover reliability

JAL CEO Toshiyuki Shinmachi announced at a news conference on November 7 that JAL Group has drawn up a corporate reform plan in order to recover reliability from customers, as it has suffered from worse financial conditions because of the safe operation issue and the rise of fuel price. The reform plan consists of investment to safer operation, improvement of service qualities and reinforcement of business infrastructure.

JAL will first invest approximately 60 billion yen to strengthen a safe operation system for the next five years from FY2006 to FY2010, as it forecasts reduction of operating revenue for a full year of FY2005 may reach about 32 billion yen mainly because it has lost customer reliability with the recent safe operation problems. Particular actions include introduction of an integrated maintenance management system in 2008, computerization of maintenance manuals, increase of spare engines and dock maintenance for Boeing 777 at Narita Airport.Also, JAL Group will increase maintenance engineers and make efforts to hand maintenance skills to the next generation.

This Week Contents
Headline
JAL invests 60 billion yenfor safe operation to recover reliability
Airline
*Loss of passengers and rise of fuel price damaged JAL for the first half
*SNA relies on ANA to improve its profitability
*Passenger shift from JAL helped ANA add revenue of about 5 billion yen
*JTA marked increases bothin revenue and profit
*CAL will begin serving daily flights for Hiroshima
Industry
*MHI largely increased order intakes for the aerospace businesses
*KHI aerospace was proppedup with defense programs and B777 program
Column "COCKPIT"
Tourism revolution and A380

ANA recorded the best midterm financial result ever

ANA Group released the financial result for the first half of FY2005 (April to September 2005) on October 31 this year, recording the highest revenue, operating profit and ordinary profit ever, although net profit was down 34% to 19.7 billionyen due to application of impairment accounting. The latest financial report finds that consolidated revenue for the first half of FY2005 increased by 4.8% to 690.9 billion yen over the same period a year earlier. Despite 4.3% increase of operating expenses, operatingprofit was up 16.4% to 69.6 billion yen.

This Week Contents
Headline
ANA recorded the best midterm financial result ever
Airline
*SKY offers almost half cheaper airfares than rivals to collect more passengers
*ANA will offer compatible"Premium Economy Asia" on B737-700s
*ANA will introduce B767 converted freighters and lease five A320s
*JTA increased revenue, but decreased profit for the first half of FY2005
Industry
*KHI has delivered the first IPC drum for Trent 1000 to RR
Airport
*Centrair handled 18% morepassengers for the first half of FY2005
*Narita increased flight frequencies, but decreased passengers for September
Column "COCKPIT"
Mourning for Mr. Eiichiro Sekigawa