*Additional 35 departure slots weekly of Narita may be allotted to JAL and ANA

The Ministry of Land, Infrastructure and Transport has decided that Narita International Airport will use unused departure slots for domestic flights for new international flights, following the new aviation agreement between Japan and China. Today Narita ensures unused departure slots for nine to ten domestic flights daily or 63 to 70 flights weekly, out of which 35 flights weekly may be allotted to Japanese carriers, according to the Ministry's discussion.

This Week Contents
Headline
*Additional 35 departure slots weekly of Narita may be allotted to JAL and ANA
Airline
*JAL and ANA largely increased passengers for China this summer
*Both JAL and ANA slightly decreaseddomestic flight passengers for July
*SKY revises downward financial outlook for the full year of FY2006
*ANA will serve a new Narita feeder service from Naha
*ANA launched a joint venture for pilot Leasing in Hawaii
Airport
*Kansai increased domestic flight passengers for July

JAL Group will again raise fuel surcharges on international flights

JAL Group has officially decided to raise fuelsurcharges on its international flights again to cope with the soaring fuel price. The new fuel surcharges will be effective to international flights departing from October 1 this year.

According to the application to the Ministry of Land, Infrastructure and Transport, JAL will raise fuel surcharges on flights from Japan to Hong Kong from 1,800 yen today to 6,000 yen on a one-way basis. Fuel surcharges on transpacific, Europe, Middle East and Oceania flights will be 13,600 yen on a one-way basis, 70% more than 8,000 yen today. Also, JAL will collect 4,800 yen a one-way ticket for China flights, 60% more than 3,000 yen today.

This Week Contents
Headline
JAL Group will again raise fuel surcharges on international flights
Airline
*JAL restructures its international flight network for higher profitability
*JAL increased revenue but still suffered from losses for the 1st quarter
*AAL decided to suspend KIX-Dallas/Fort Worth flights again
*ANA hopes to serve another ANA Connection for Naha
*JAL air transport result for June 2006
Industry
*FHI consolidated financial result for the first quarter of FY2006
*IHI consolidated financial result for the first quarter of FY2006
Column "COCKPIT"
JAL in a play

ANA enjoyed the best financial performance for the 1st quarter ever

ANA Group released the consolidated financial result for the first quarter of FY2006 (April to June 2006) on July 31, reporting that it achieved the best first quarter performance ever as it increased passengers and revenues on both domestic and international flights, despite the rise of fuel expenses. Revenue for the first quarter of FY2006reached 345.2 billion yen, 10.5% more than the same period last fiscal year, primarily because of increase of passengers, rise of unitprices and recovery of passenger demand for China.

This Week Contents
Headline
ANA enjoyed the best financial performance for the 1st quarter ever
Airline
*Star Alliance launches a cargo alliance project
*ANA & JP Express begins its cargo business from Haneda
*UAL will shift its east coast flights from JFK to Washington DC this winter
*JAL serves six charters for Ayers Rock in August
Airport
*Centrair expanded the monthly reduction rate of passengers for June
*Kansai handled the monthly most foreign passengers for June
Industry
*MHI consolidated financial result for the first quarter of FY2006
Column "COCKPIT"
United 93