ETIC Resolves to Implement Capital Injection at Japan Airlines
August 31st 2010
Enterprise Turnaround Initiative Corporation of JapanThe Enterprise Turnaround Initiative Corporation of Japan (“ETIC”) decided on January 19th
2010 to provide support to Japan Airlines Corporation and related companies (“the JALCompanies”) under Article 25, Clause 4 of the Enterprise Turnaround Initiative Corporationof Japan Act (Act 63, of 2009, hereafter “the ETIC Act”), and on March 26th, 2010 reachedagreement on the purchase of debt owed by the JAL Companies under Article 28, Clause 1of the same act.
ETIC today resolved to implement a capital injection at the JAL Companies under Article 31,
Clause 1 of the ETIC Act, subject to approval of the business revitalization plan submitted by
the corporate trustee under Corporate Rehabilitation procedures filed by the JAL Companies
with the Tokyo District Court and to passing of a resolution to implement the business
revitalization plan
1. Name(s) of persons or companies concernedJapan Airlines Corporation, Japan Airlines International Co., Ltd., JAL CAPITAL CO., LTD.
(collectively “the JAL Companies”)
2. Outline of new share issue concomitant with capital increase
Issuer of new shares:

Japan Airlines International Co., Ltd.

Class of new shares:

Ordinary shares

Number of shares:

175,000,000 shares

Pay-in amount for new shares¥350 billion

Pay-in date:

The day after resolution to implement thebusiness plan (scheduled for December 1st, 2010)

Increase in capital and capital reserve:¥175 billion respectively

Share allocation:

ETIC 100%* (capital increase provided entirely by ETIC)*Note: Under the terms off the business revitalization plan, in addition to a planned capital increase by ETIC,
subject to court approval the corporate trustee is able to issue new shares through a third party capitalincrease. In the event of any such third party capital increase the percentage of issued and outstanding
shares held by ETIC would reduce in accordance with the number of shares issued to the third party.

3. Comments from State Ministers in charge of ETIC

Prime Minister, Minister of Internal Affairs and Communications: No opinion

expressed
Minister of Finance: “I ask that ETIC, while working steadily to support
implementation of the business plan outlined for the JAL Companies in the corporate
revitalization plan, also seeks the cooperation of related parties to bring about a swift
completion of the resuscitation proceedings.”Minister of Health, Labour and Welfare: “I have no objection to the plan. However, I
ask that in advising on and guiding the implementation of the corporate revitalization
plan, ETIC should aim to ensure that the JAL Companies comply with related laws
and regulations and create adequate opportunities for substantive discussions withthe workforce with due consideration of employment stability and other such factors.”
Minister of Economy, Trade and Industry: “The airline industry provides a foundation forpeople’s livings and economic activity, and I ask that sufficient consideration continues tobe given to ensure that there are no barriers to the continued operation of the JAL
Companies, and that in carrying out the corporate revitalization there should no negative
impact on transaction partners.”—Ends—