Contents
Corporate Policy of the JAL Group, Corporate Social
Responsibility and Company Profile . .......................... 1
Discussion Between President & CEO Haruka Nishimatsu
and Masumi Shiraishi, Professor of Policy Studies,
Kansai University......................................................... 2
What We Do............................................................... 6
Corporate Governance............................................. 14
SafetyMaintaining Flight Safety.......................................... 18
Safety-Management System...................................... 20
Objective Assessments.............................................. 22
Learning from the Past.............................................. 24
Safety Incidents in Fiscal 2006................................... 26
Stakeholders
Universal Design....................................................... 28
Together with Our Customers................................... 30
Together with Our Shareholders and Investors........... 36
Together with Our Employees................................... 38
Together with Society................................................ 42
Environment
Our Responsibilities................................................... 46
Environmental Social Activities.................................. 48
Environmental Action Program.................................. 50
Environment Conservation........................................ 52
Operating Results and Traffic Statistics...................... 55
Third-Party Opinion . ................................................ 56
Participation in the UN Global Compact.................... 57
Cover illustration: Eizin Suzuki

Editorial Policy
Through this report on corporate social responsibility (CSR), we in the JAL
Group hope to make our stance on safety and our views on improving services and environmental activities clear and easy to understand. In compiling and editing this CSR report, we received the cooperation of numerous
people from outside the company and strove to achieve objectivity in thefindings presented here.
We have assumed an eco-friendly stance in producing this report, using
paper certified by the Forest Stewardship Council (FSC), a nonprofit organization devoted to promoting responsible management of the world’s forests,
and FSC Mixed Sources, which includes recycled waste paper. To reduce theuse of paper, we have posted some information on our website rather than
within this report.
This CSR report essentially covers the period from April 1, 2006 to March
31, 2007, but we also include events before and after this period. The report deals with activities at the group level, though on occasion we limit our
discussion to specific group units, such as Japan Airlines Corporation or thiscorporation together with Japan Airlines International Co., Ltd. and Japan
Airlines Domestic Co., Ltd. (collectively referred to as JAL).

Back Issues and Next Release
The CSR reports for 2005 and 2006 are available on the company website:<http://www.jal.com/en/corporate/csr2005><http://www.jal.com/en/corporate/csr2006>
The next English CSR report is due to be published in September 2008.
Published by the CSR Committee, Japan Airlines Corporation, September 2007
To contact us:
CSR Committee Executive Office (Corporate Management Bureau)
Phone: +81-3-5460-3749 Fax: +81-3-5460-3164
e-mail: jal_csr@jal.com
Address: JAL Building, 2-4-11 Higashi-Shinagawa, Shinagawa-ku,
Tokyo 140-8605, Japan

Corporate Policy of the JAL GroupThe Japan Airlines Group, as an overall air-transport
enterprise, will act as a bridge to bring peoples, theircultures and their hearts closer together and thus
contribute to world peace and prosperity.
1 We will prioritize safety and quality.
2 We will think and act from the standpoint of thecustomer.
3 We will strive to maximize corporate value.
4 We will fulfill our responsibility as a corporate citizen.
5 We will appreciate hard work and take on a positive
attitude.

Corporate Social Responsibility
The corporate social responsibility of the JAL Groupcan be summed up as the realization of the above
corporate policy. JAL will promote activities thatemphasize our relationship with all our stakeholders— our customers, shareholders, investors, business
partners, employees and society — on economic,
social and environmental levels that will increase ourcorporate value and respond to the expectations andtrust placed in us by society.

Company Profile (as of March 31, 2007)
Holding Company

JAL Group

Company Name: Japan Airlines Corporation

Constituent Companies:
Japan Airlines Corporation, 247 subsidiaries and
87 affiliated companies. The main 10 group companies
are as follows:
Japan Airlines International Co., Ltd.
Japan Asia Airways Co., Ltd.
Japan TransOcean Air Co., Ltd.
JALways Co., Ltd.
JAL Express Co., Ltd.
Japan Air Commuter Co., Ltd.
AGP Corporation
JALPAK Co., Ltd.
JAL Tours Co., Ltd.
JAL Hotels Co., Ltd.

Date of Foundation: October 2, 2002
Company Activities:
As the holding company of a group of air-transportcompanies and related businesses, administration of thesecompanies’ operations and support services
President & CEO: Haruka Nishimatsu
Head Office: 2-4-11 Higashi-Shinagawa, Shinagawa-ku, 		Tokyo 140-8605, Japan
Paid-in Capital: ¥174,250,000,000
Shares Issued: 2,732,383,250
Number of Stockholders: 425,070

Discussion

Meeting Society’s Expectations
Between President & CEO Haruka Nishimatsu and Masumi
Shiraishi, Professor of Policy Studies, Kansai University

Maintaining Pride in Our Work
Shiraishi: For the last few years, JAL has faced a severebusiness environment, but thanks to the efforts made by
yourself and JAL staff there has been a recent decline insafety incidents and irregular operations.
Nishimatsu: It’s true that the number of incidents is on
the decline. But it’s my belief that we must not feel complacent with those numbers. Ideally, we want to achieve zeroincidents, but in realistic terms it is impossible to achieve azero-incident rate on all the aircraft used in the 1,200 flights
we operate around the world each day. We are, however,doing everything within our power to lower the number
as close to zero as possible. I also believe we have to comeup with firm measures against human error. It is of course
vital to make all efforts to reduce such error, but here, too,it’s impossible to eradicate human error entirely. What is
important is to put a mechanism in place such that even if
an error does occur, it is not allowed to develop into a serious situation. To achieve that, we must create a corporate
culture in which our staff immediately report instancesof human error and situations where they feel danger has
arisen. In the flight and maintenance divisions, we’re seeing
a steady improvement in the way these reports are being
filed.
Shiraishi: To eliminate human error, the key elements are,I think, the mental attitude of each staff member towards
safety and the pride they take in their work.
Nishimatsu: If you have no pride in your work or sense offulfillment, that cuts into your safety awareness. I believethat society has major operational safety expectations of the
JAL Group. This year, we operated a charter flight to transport a business mission led by the Nippon Keidanren (Japan
Business Federation), which accompanied Prime Minister

Shinzo Abe on an official visit to the Middle East. I myself
participated in that, and the mission was a great success. As
a result, I felt JAL had played a role in bringing Japan andthe nations of the Middle East even closer together. This
was a very welcome development for us at JAL. The factthat we were able to transport senior figures from the business community safely and smoothly to countries where
we don’t operate regular flights helped boost the confidenceof our staff. This is only a single example, of course, but toshoulder the major expectations of society and succeed ina task involving considerable responsibility helps generate
pride in one’s work and also leads to an increasingly highlevel of awareness about operational safety.
Shiraishi: Since JAL is a company that by its nature has ahigh social and public profile, I hope that you can meet thesafety expectations of society and bring about increased
customer confidence.

Safety and Customer Confidence
Shiraishi: In your business policy, you state that with safety
as your first priority you intend to provide a higher-quality
service to all your passengers as you expand your global
network. But what do you plan to do in concrete terms toincrease customer-satisfaction levels?
Nishimatsu: As well as being a social obligation, operational safety is fundamental to the existence of the JAL
Group. However, a major task we face is boosting consumer
confidence with regard to our commitment to safety. I
would like to see not only the divisions directly involved
with operations but also airport staff and cabin crew offer aservice that customers can feel confident about.
This fiscal year, we established the Customer Satisfaction
Improvement Division as a counterpart to the Corporate
Safety Division. This new division is charged with achievinghigh-quality services for the total satisfaction of our customers.
The next major issue is punctuality. Timely operations
are vital for a public-transport organization. Once we havepunctual operations, we must pursue comfort and convenience.
We will provide products and services that enhance
comfort and convenience for our customers in all situations, whether when making reservations, at the airport
or onboard the plane. In addition to safety and greater
customer confidence in our ability to provide that safety,
increasing punctuality, comfort and convenience will resultin greater customer satisfaction.
Shiraishi: Earlier this year, you set up a women’s team, theArtemis Project, which was tasked with improving service.
Nishimatsu: The people who most frequently use JAL
are businessmen. It’s perhaps not surprising therefore thatsome of our customers have told us there is a distinct maleorientation to JAL products and services. So we set up the
Artemis Project, which is composed of female staff, to review our products and services from a variety of women’sviewpoints. We received the cooperation of women fromoutside the company in developing these services andbelieve our male customers will also be satisfied with thehigher-quality products and services we’re introducing.

Women in the Workplace
Shiraishi: I anticipate great things from your women’s project team. The JAL Group appears to be a company where alarge number of female staff can be employed in a stimulating working environment, such as experienced female cabincrew providing highly attentive service onboard. You are
rehiring some of these experienced cabin-crew members,
who are returning to the workplace after having taken timeout to bring up their children.
Nishimatsu: If we provide an environment where staff canleave the company for family reasons in the knowledge thatthey can return to work once they’ve raised their children,that will lead to a broader array of lifestyle choices. In addition to considering the work-life balance of our employees,
if we have staff who possess a wealth of experience serving
our customers, it follows that customer service will also
improve.
Shiraishi: I also believe cabin crew who have brought upHaruka Nishimatsu
President and CEO

their own children are best equipped to understand theneeds and desires of customers accompanied by children.
Nishimatsu: To reply to the needs of our many different
customers, we should probably also look into diversifying
our staff. I believe that diversity will result in improved customer service.
Shiraishi: It’s very important that companies hire and actively support women in all their activities. If such support
is adequately provided, it will help combat the problem ofJapan’s low birthrate. It’s important for society as a whole tosupport those who are bringing up the next generation ofchildren.

JAL’s Social Responsibility
Shiraishi: JAL is trying to address environmental issues.
For example, you’re using lighter tableware with inflightmeals to reduce the overall weight of the aircraft.
Nishimatsu: The weight of the aircraft has a direct bearing
on the amount of fuel consumed and thus the volume ofcarbon dioxide emitted. As a consequence, we’re adopting

all kinds of measures to reduce the weight of our payload.
We use porcelain tableware in First and Business classes,
but about three years ago we introduced lightweight porcelain and reduced the thickness of our forks and spoons. We
will continue in our efforts to reduce CO2 emissions so as tomake whatever reductions we can in the burden we impose
on the environment.
Shiraishi: As the CEO of a listed company, you naturally
comply with relevant laws and regulations and look tomake a contribution to your shareholders and customers
by seeking to raise corporate value, but CSR activities are atthe vanguard of those efforts. I believe the issue for JAL will
be whether you, as a company, can make a contribution tosociety that goes beyond commercially measurable values.
Nishimatsu: As an airline, we naturally undertake initiatives to reduce CO2 emissions, but we’re also involved invarious kinds of environmental activities. Since 1993, we’ve
participated in a tropospheric-observation project, whichanalyzes air samples collected from altitudes of around
10,000 meters. Under the new tropospheric-observation
project, which began in 2005, aircraft installed with CO2measuring equipment are operating over a broader area of
the globe. The data accumulated represents a major contribution to research on global warming, and we will continue
our active support of such projects.

in North and South America, Europe, the Middle East,
Asia and Oceania. Our customers can now look forward to
many benefits, such as smooth transfers between participating airlines and the accumulation of mileage when travelingwith oneworld-member airlines. This alliance has maderound-the-world travel markedly easier.
Shiraishi: Your participating in a global alliance meansthat customers from all over the world will now use JAL
flights. So you’re no longer dealing mainly with Japanesepassengers, but need to consider how best to cater your services to people from many different countries and cultures.
Nishimatsu: The airlines in the JAL Group employ flightcrew based in locations outside Japan, such as Europe,
Asia and South America. However, they have all studied
Japanese culture and customs and provide customers withthe same attentive service at which the Japanese excel. I’mconvinced that people from around the world will understand and enjoy this Japanese style of service. Looking to
the future, we must strive to ensure that people identify not
only with our service, but also with our corporate stanceand CSR activities.
Shiraishi: I would certainly like to see you faithfully implement the ideas you’ve just mentioned and continue to be an
airline that lives up to the trust placed in it by customers.

CSR on a Global Scale
Shiraishi: JAL joined the oneworld airline alliance inApril, within which participating airlines serve almost 700
cities in nearly 150 countries.
Nishimatsu: Geographically speaking, oneworld is an extremely well-balanced alliance. We can view the alliance asa collection of airlines that prioritize quality, having bases

Masumi Shiraishi
Born in Osaka Prefecture in 1958, Shiraishi completed a master’s degree
at Kansai University Graduate School. She became a senior researcher
at NLI Research Institute and associate professor in the Department ofSocial Economic Systems at Toyo University before becoming a professor in 2006. She assumed her present position in 2007. Specializing in
the barrier-free concept along with the relationship between Japan’s
low birthrate, the aging of society and regional systems, Shiraishi is theauthor of a number of books related to these issues. She has served as
an advisor to JAL since 2006, in which capacity she has made numerous
proposals regarding the products and services of the JAL Group.

What We Do
The staff at the JAL Group work towards
providing the best in products and services
at each stage of the flight process — fromreserving and purchasing tickets throughboarding and departure to arrival at
the destination — so that our customers genuinely enjoy the JAL
flight experience.

What We Do

Reservation Center
Staff at the reservation center takeseat reservations on JAL Grouproutes and respond to various inquiries via telephone, working to address the needs and requests of ourcustomers. We offer support so that
unaccompanied children, passengers
with babies and those in wheelchairs
can freely board their flights without
undue concerns.

The Key Role of Communication
I’ve been with JAL for almost ayear now as a call-center manager
in the London Office. I look after acomplement of around 55 people
from different cultures, languages
and backgrounds, and that feature makes my job interesting anddynamic. This is the first time forme to work in a Japanese businessenvironment, and I’m finding it to
be a great learning experience. My
main goals for this year and next
are to achieve the highest level ofcustomer service on the phones
and to increase the productivity of
the call center at all levels. I’m a great believer in communication being the
key to success for all businesses. I will do my best to promote communication in Europe, the Middle East and Africa and to create a dynamic officewhere there is a willingness for change and innovation as well as respect forour customers.

Simonetta Di Benedetto
JAL European Call Center, London OfficeFulfilling Customer Needs
At the Reservation and Ticketing Department, we aim to provide customers with warm and considerate service that distinguishes JAL fromother airlines. It is also important to provide satisfying service that
fulfills customers’ needs. When we deal with Japanese expatriates andbusinessmen in Shanghai, we pay close attention to our communication
skills. This is important because through thorough understanding we’reable to fully understand customers’ needs and help reduce stress for
those planning to go abroad or beginning life overseas for the first time.
We also propose itineraries for people
planning to travel overseas and predict and circumvent problems that
may occur during travel so that customers may enjoy their journeys tothe fullest. We will continue to work
hard at being a trusted airline chosen
by customers.

Ticketing Counter
In addition to standard ticketing, staff
at the ticketing counter respond to requests to reissue tickets as a result of rerouting as well as provide refunds whereappropriate. Recently, more customers
have taken advantage of the JAL Ticket
Service, where tickets are delivered via
mail or courier services, in addition tousing paperless e-tickets.

Yang Peiyi
Reservation and Ticketing Department,
Shanghai OfficeAirport Operations
The airport is the cornerstone of the service, safety and maintenance involved in serving our customers, and work of the
airport staff includes passenger operations and ground handling. Counter-based ticketing, boarding proceedings andassisting passengers at the boarding gate are the major tasksof passenger operations. Ground handling involves loading
baggage onto the aircraft and a variety of departure andarrival operations. JAL also provides the JAL Priority Guest
Support and JAL Smile Support services to support and assist
elderly passengers, those with disabilities and passengers withchildren.

Importance of Teamwork
Our 65 staff assist inbound and outbound passengers
on 12 flights a day. On any given day, there are countless safety issues that we may encounter. Many of these
are resolved with minimal or no flight delays throughthe assistance of fellow JAL Group staff, subsidiary staff
and management. As a relatively small department, we’vedeveloped a supportive network in which all staff work
closely together to assist and support each section in thetimely resolution of any issues. While we diligently comply with government safety regulations, all the while we’reaware that our actions, attitudes and behavior towards
each passenger will create a positive or negative impression of JAL. When faced with a flight delay, we keep passengers informed through frequent announcements, offer
refreshments or meals, distribute phone cards and suggest alternative flight arrangements. With the assistanceand cooperation of various sections and departments, we
strive to maintain customer satisfaction.

Dale Hatakeyama
Passenger Service Department,
JAL Hawaii

What We Do

Flexible Response to Different Situations
Before each flight, we always make thorough preparations todeal with a variety of possible situations arising. But having
made these preparations, we still have to respond flexibly during the flight to a wide range of cases and conditions. For example, if turbulence is reported up ahead, we immediately haveto decide what to do. We could choose to prioritize passenger
comfort and bypass the turbulence altogether by altering course,
or we could put the emphasis on arriving on schedule and continue with our course. In suchsituations, we begin by checking
a number of factors, including
the progress of the inflight meal
service and the traffic situation
at the destination airport, before making the appropriate
decision. I’m delighted when wearrive at the destination airport
on schedule and also offer ourpassengers a pleasant flight.

Hisashi Sugimoto
Flight line instructor,
Flight Crew Training Division

Aircraft-Operation Control
Every aircraft in the JAL fleet is under centralized control
24 hours a day every day of the year by the Operation
Control Center (OCC), situated at JAL’s Tokyo headquarters. Dispatchers at the OCC continuously monitor theaircraft to ensure that they are flying normally. For example, in cases where an area of turbulence develops along
the flight path and danger is anticipated, the dispatcher
contacts the flight crew and directs them towards a safer
route. When passengers hear inflight announcements
regarding turbulence, these are based on information
relayed from the ground. In cases where unexpected
situations arise, including airport closures, the dispatcher
may change the destination airport. The job of the OCC
dispatchers is divided by area into long-distance international routes, short- and medium-distance internationalroutes and domestic routes.
For more information, please see<http://www.jal.com/en/safety/flight/flight2.html>.

Work of the Flight Crew
Periodic Training to Maintain Flying
Techniques and Reduce Human Error
Each member of the JAL
flight crew is obliged to undergo periodic proficiency
screening and flight training. Any crew member who
fails to pass the proficiency
examination, conducted
once every six months, loses the qualification to
fly. JAL also uses the flight simulator in training,which is designed to help pilots cope with sudden changes in wind direction during takeoff
and landing and to train them in evasion procedures at times of abnormal ground approach.
Group training is conducted to ensure that theflight crew work as a team and can tackle suchsituations as engine trouble occurring at thesame time as an onboard medical crisis. This
training is designed to ensure flight safety.
<http://www.jal.com/en/safety/training/training2.html>

Relaying Advice Quickly
The first point of contact for the flight crew in cases
where the aircraft or flight equipment develops problems is the Operation Control Center. There’s quite
some pressure involved in relaying appropriate advice
to support the flight crew within a limited amount oftime. But that’s also the challenge of the job. I’m constantly prepared to cope with anything that may arise
while I’m on duty, and I’m happy when my shift ends
without incident.

Maki Okashita
Operation Control CenterRole of the Cabin Crew
Providing High-Quality Service and Safety
In the aircraft cabin, it is the job of the cabin crew
to protect the safety of our passengers so that they
can pass their time pleasantly during the flight,
secure in the knowledge that all is well. The cabincrew apply the expertise they have acquired in
specialized training to provide a high-quality service. Because of irregular schedules and time differences, these staff need to have enough energy
to carry out their duties. All members of the cabincrew meet before departure and after arrival forbriefings at which they reconfirm their roles andresponsibilities and also exchange opinions.

Atmosphere of Safety
Most of the measures taken by
JAL staff to ensure safety on
our flights remain invisible tothe passenger. For that reason,
I strive to display a serious andresponsible attitude towards
safety matters in the cabin asa first step to customer satisfaction. When I have to makea safety-related request of acustomer, such as asking themto stow their carry-on luggage, I think it’s important to finda balanced, polite, yet firm approach. Once this atmosphereof safety has been established, I feel confident in providing
warmhearted and friendly service, understanding each passenger as an individual. I try to stay aware of the fact thatpeople come from different backgrounds and remain sensitive to such factors as body language and gestures in orderto achieve full customer satisfaction. After all, this is whatmakes my duties most enjoyable to me.

Katharina Schnurbus
Cabin attendant, Frankfurt

The Mission of Our Maintenance Staff
Safety and Credibility
Maintenance of flight equipment on the parking apron and in the
hangar, including which parts to maintain and in what manner todo so, is required by law, based on the number of hours an aircraft
has flown, flight frequency and the number of days since the last
mechanical check was conducted. Maintenance functions can bebroadly divided into preflight checks, carried out before each departure, and the closer checks and repairs carried out during regular
maintenance work, performed in the aircraft hangar. During preflightchecks, in addition to inspecting stipulated items (such as dents inthe fuselage or oil leaks) action is taken based on reports of malfunction or trouble received from the flight crew. The maintenance crew
ensure that they uncover any potential problems and take appropriate action to fix everything within the limited time before the nextscheduled departure. It is also the duty of the maintenance crew toperform last-minute checks to ensure that refueling and cabin cleaning, which are done at the same time as maintenance tasks, havebeen thoroughly and satisfactorily completed.
For more information, please see<http://www.jal.com/en/safety/section/section5.html>.

10What We Do

Cabin-Crew Training
Rescue Drills
All JAL cabin crew are
obliged to undergo rescue
drills once a year. Training
is carried out under a variety of simulated emergency situations, involving, forexample, use of the emergency exits and the indoor
training pool. Joint exercises with the flight crew
are also conducted so as
to confirm the role of eachparticipant and come up
with better ways for the participants to cooperate with
one another. At present, there are approximately 30 instructors (serving cabin-crew members) at the Emergency
Training Center, where cabin-crew members undergo
training almost every day.
For more information, please see<http://www.jal.com/en/safety/training/training4.html>.

Rigorous Maintenance Checks
I joined the Shanghai Office in August 1994 and obtained First Class Qualified Engineer certification in
December 2006. I’m now responsible for preflightchecks of 767s. Completing a thorough maintenancecheck in the short period of time available to us before a flight departs is demanding work, but when we
wave good-bye to passengers as the flight takes off, I
feel a great sense of pride and satisfaction in a job welldone. I will ensure that my team continues to work
diligently to maintain passengers’ trust and satisfaction in what we do.

Zhou Yong
Maintenance,
Shanghai Office

Maintenance Outsourcing
Only Accredited and Proven Companies
JAL outsources a portion of aircraft-maintenance duties
to specialized maintenance companies based largely in
Singapore and China. These companies have all been accredited by such bodies as the Japanese Ministry of Land,
Infrastructure and Transport, the U.S. Federal Aviation
Administration and European aviation authorities. They
are commissioned with maintenance tasks by the world’s
major airlines and are companies with sufficient technological capabilities and proven track records. In addition
to JAL investing in
SASCO in Singapore
and TAECO in
China, which are
our major outsourcing clients, locally
based JAL staff also
carry out rigorous
quality checks.

11

Airport Staff
Smooth Cargo and Baggage Transfer
At busy times, a commercial airliner may carryin excess of 20 tons of cargo. At JAL, wetake the greatest care when handling cargo,
which can include such items as precisionequipment and artworks. We also make every effort to deliver cargo to our customers attheir destination without any undue delays.
Loading work requires specialized knowledge
and technology, not only to protect the material being loaded but also to prevent damage
to the aircraft. Staff engaged in this work
have to undergo special training and obtain aproper qualification.

Operations at Anchorage
I joined JAL in 1987, and during my tenure I’ve experienced manychanges at Anchorage. Initially, we were very busy dealing withcargo flights and exporting various fresh-seafood shipments toJapan along with handling daily passenger flights transiting between
Japan and Europe. In 1991, our passenger flights between Japan andEurope became nonstop and we focused on cargo flights and theseafood-export business.
The summer of 1998 saw Anchorage handling passenger charters, beginning with JALways flights and then the return of JAL
passenger charter flights. These flights have increased from summer
charters at Anchorage to include charters managed by Anchorage
staff at Fairbanks.
As we proceed into the future, we’ll continue to make efforts tocontribute with new export cargoes and the safe handling of importcargoes and passenger charters,
thereby providing the best service possible for our valued customers. We’re proud to be partof JAL, and we wish the best to
our colleagues worldwide.

Paul Trush
Administration & Traffic,
Anchorage Office

JAL Mileage Bank
More Uses for Mileage

Ease of Use
I work on frequent-flyer
agreements with partner airlines and plan mileage services. Since JAL joined oneworld
this April, JMB members havegreater opportunities for earning and redeeming mileage,
and the variety of award travel
has increased significantly.
Mileage has to be easy to earn,
use and understand. We aredoing our best to create amore user-friendly program
so that we will be chosen byeven more customers.

Recent years have witnessed an increase in
the number and scope of opportunities toearn mileage, extending beyond air travel toinclude a variety of daily activities, such as
shopping and dining. For greater customer
satisfaction, JAL Mileage Bank (JMB) also
examines ways of increasing the number ofpartner companies with which customers
can redeem their mileage for awards. At thesame time, JMB introduces convenient services and runs various attractive campaigns.
In May 2007, membership in JMB topped
20 million. Since JMB keeps personal information about our customers, we have in
addition to take great care with data management and protection.

Rika Matsumoto
Mileage Center

12

What We Do

Cargo Staff
Delivering Cargo Safely, Reliably and Rapidly
Exports
Protecting the Safety of Cargo andOperations

Reservations
Central Counter for Reserving CargoSpace and Handling Various Inquiries
At this desk, we try to give accurate advice andreply to inquiries about cargo-handling andflight scheduling from our customers. Whensending cargo overseas, restrictions and procedures differ according to the country, so ourstaff need to be extremely knowledgeable about
the various conditions.

We load checked cargo onto pallets and into
containers. This entails a broad variety of handling requirements, depending on the typeof cargo. We have to deal with such items as
dangerous goods, sensitive cargo and materials that require cold storage. It is also our
responsibility to control the weight of loaded
materials to maintain operational safety.

Reservations

AirportDepartures

Arriving at
the Airport

Flights

Inflight
Imports
Returning Cargo to Passengers
We break down cargo from pallets and containers following arrival and deliver it to customers
as rapidly as possible after confirming the number and status of individual pieces. Our job also
involves the reporting of any discovered illegal
goods to customs
officials.

Taking Proper Care of Cargo
During the Flight
The needs and requests of our customers are relayed from the cargostaff to the responsible loading officer and flight crew. We sometimes
transport such specialized loads as
racehorses and works of art, and insome cases the client wishes to accompany the valuable object inflight.
Staff maintain the inflight temperature at appropriate levels and keep
close watch on the condition of the
cargo throughout the journey.

13

Corporate Governance
The Corporate Safety Division and Customer
Satisfaction (CS) Improvement Division, which both report directly to the president, were established to ensure
operational safety and meet the expectations of ourcustomers. These two bodies oversee operations in thefollowing six divisions — Flight Operations, Engineering& Maintenance, Cabin Attendants, Airport Operations,
Cargo & Mail, and Passenger Sales & Marketing — as we
aim to achieve efficient and competitive organizational
operations.
The Corporate Safety Division was established in April
2006, based on proposals from the Safety Advisory
Group (see page 22) for the “establishment of a central
structure responsible for safety to serve as a powerfuladvisory group for top management.” This safety division

is located in Terminal 1 at Haneda Airport.
The CS Improvement Division was established in April
2007 to reflect accurately the desires and opinions of ourcustomers.
The CSR Committee was established in April 2004.
Since then, the JAL Group has worked in unison to promote CSR activities. Directors responsible for each business area serve as CSR Committee members, with theexecutive office located in the Corporate Planning
Bureau. No full-time department related to CSR has
been established: we have worked to spread awarenessthroughout the group that each individual department is
responsible for CSR.
Global Environment Working Group/
Environmental Sub-Committee

CSR Committee
General Meeting of
Shareholders

Safety Enhancement Task Force
Corporate Compliance & Business Risk Management Committee

Corporate Auditor of the
Board

Board of Directors

Corporate Auditors

President

CS Improvement Committee
JAL Midterm Revival Plan Steering Committee
Strategy Conference

Corporate Safety
Division

CS Improvement
Division

JAL Group Management Board
Alliance Steering Committee

Flight Operations
Division

Engineering &Maintenance Division

Cabin Attendants
DivisionInternal Control Systems
Basic Principles
Through fair competition and by ensuring operationalsafety, the JAL Group fulfills the economic role of providing a good product for which it obtains profits. We also
aim to be a corporate group that contributes on a broad
basis to society. As a result, the company established its
Basic Policy on Internal Control Systems in line with therules laid down in Japanese corporate law to ensure thevalidity and effectiveness of operations, the authenticity
of financial reports and compliance with related laws andregulations.

14

Airport Operations
Division

Cargo & Mail
Division

General Meetingof Shareholders

JAL Group Internal
Control Systems

Risk Management
SystemAudits by
Corporate
Auditors
Board ofCorporate
Auditors
Corporate
AuditorBureauPassenger Sales &Marketing Division

Board of Directors
AuditsPresident

Corporate Compliance &Business Risk Management
Committee
Business Risk
Prevention
Task Force

Information
Security Task
ForceBusiness Risk

Safety Enhancement
Task Force
CrisisManagement
Task Force

Flight Safety
Steering
Committee

Operation Risk

Internal Audits
Auditing
Division

AuditsHead Office, Branch Offices andGroup Companies

Corporate
What
Governance
We Do

Risk Management System
At JAL, we divide risk into two broad categories: risk
from engaging in air transport (operation risk) and risk
from other business operations (business risk).
We have established two councils made up of board
members to manage risk:• The Safety Enhancement Task Force, which establishes
policies and responses to operation risk. This met on
21 occasions during fiscal 2006.
• The Corporate Compliance and Business Risk Management Committee, which establishes policies andresponses to business risk. This met twice in fiscal 2006.
Information gathering related to risk management andreporting channels have been established and divided
into standard and emergency situations, while precautionary measures and timely reporting systems have been
set up for cases when incidents occur. The company has
also laid down rules stipulating the responsibility of thecompany directors in cases where emergency situations
arise.

Information Security and Protectionof Personal Information
1. Establishing the System and Structure
In addition to basic policies and rules common to thewhole group, the company has established a set of standards for information-security measures in compliancewith ISO 17799. This protects JAL computer systems
against data leaks and tampering, service outages andcomputer viruses. Each department also conducts its
own checks to ensure that relevant in-house procedures
conform to these standards and reports its status to an
information-security subcommittee.
2. Employee Education and Development
As well as implementing e-learning-based training for all
JAL Group staff, the company promotes educational activities concerning data leaks as part of our risk management.
3. Gaining Accreditation
JAL Group companies are actively engaged in activities
aimed at acquiring various forms of accreditation, including the Privacy Mark, a Japanese certification granted

to private enterprises that adopt adequate measures inprotecting personal data, and the Information Security
Management System (ISMS) standard. In May 2007,
placement agency JAL Business Co., Ltd. and cargo andlogistics enterprise JAL Logistics Inc. were awarded thePrivacy Mark.

Internal Whistle-Blowing
In April 2006, JAL established a system for internal
whistle-blowing in line with the enforcement of the
Whistleblower Protection Act. In addition to widely publicizing this system throughout the JAL Group, we takesteps to respond in a timely and appropriate manner toprotect the privacy of the informant where such information has been brought forward. The company has alsoestablished liaison desks relating to human rights andsexual harassment for the purposes of receiving inquiries
and listening to complaints and grievances of group employees.

In-house Response System(Timely and proper handling throughcooperation between each division)

Group Hotline(Business Activities
Reappraisal)

Sexual Harassment
Liaison Desk
(Human Resources)

E-mail, telephone

JAL Group employee

Employee-Data Leaks
In March 2007, it was discovered that company-held
employee data had been leaked to one of the labor unions.
Following detailed analysis of this incident, the company
decided to strengthen control of employee data and makeall efforts to prevent a recurrence of this incident via suchmeasures as raising awareness of personal-data protection,
explicitly specifying the reason for acquiring personal datawhen it is collected and clarifying the scope of authority of
those engaged in handling such data.

15

Audits
1 Corporate Auditor of the Board

Each year, the corporate auditors attend meetings with
the JAL Board of Directors. In addition, along with staffof the Bureau of Corporate Auditors, they audit approximately 100 corporation departments, operational branch
offices and group companies and report the results tothe president. They also exchange information with internal-control divisions and auditing companies, and holdmeetings three times a year with full-time auditors at JAL
subsidiaries to share information with the aim of enhancing and improving corporate auditing.
The JAL Group is moving to enhance its overall auditing system, including that at Japan Airlines International
Co., Ltd., where in addition to two auditing-operations
officers assisting the auditors, the company has appointed five group auditors to audit 26 of our subsidiaries that
contract operations from Japan Airlines International.

Environmental Audits
We audit the entire group with the objective of promoting business operations based on compliance withenvironmental laws and ordinances in addition to group
policies, rules and regulations related to environmental
issues.
Safety Audits
Please see page 21.

Compliance
At the JAL Group, we view compliance as an importantfunction of our internal-control systems and at the sametime position compliance as fundamental to CSR. The
company interprets compliance to mean not just adherence to laws and ordinances but conformity with internal
rules, social norms and agreements decided in contract(or amongst ourselves), and through this to comply withsocial needs and demands and increase corporate value.

2 Internal Audits

To tighten internal controls and checks, the JAL Group
implements the following audits. Yearly assessments andreviews of areas subject to audits and audit methods are
conducted.
Operational Audits — Departmental
We audit general operations at the department and office levels, focusing on their overall area of operations.
Operational Audits — Specified Areas
We select a subject area and audit across companies andorganizations with respect to group policies, systems andmanagement. Fiscal 2006 saw audits carried out of risk
management in sales activities and information-securityresponse status.
Accounting Audits
We conduct audits at the divisional level (each operational base) to ensure that procedures for complying withaccounting regulations and standards are being followed.
Group Audits
We audit each group company to promote business operations based on group management practice and theoperational mission given to each company. This is also
performed to improve each company’s internal controls,
compliance and risk-management functions.

Improving corporate value

Winning the trust of society

Realizing corporate ideals

Promoting sincerity

Ongoing sound business activities

The JAL Group Code of Conduct
The JAL Group has established a code of conduct entitled“Commitment to Society” so as to ensure the executionof its Corporate Policy. Part of this policy reads, “TheJapan Airlines Group, as an overall
air-transport enterprise, will act
as a bridge to bring peoples, theircultures and their hearts closer
together and thus contribute toworld peace and prosperity.”
In addition to all our employees fulfilling their responsibilities,
we promise that we will constantly
Our Commitment to Society

16Corporate
What
Governance
We Do

act as an organization that fulfills its responsibilities as agood corporate citizen.
For the full text of the JAL Group Code of Conduct,see <http://www.jal.com/en/corporate/action.html>.

mation exchange among planning and field divisions, thecompany has begun publishing Monthly Compass, which
introduces concrete case studies and activities carried out
at each work site.

Compliance Promotion

Compliance Month

The JAL Group established the Corporate Complianceand Business Risk Management Committee to set downcommon concepts related to compliance for the entire
group and to disseminate these throughout the group
via various training and educational activities.

Training Courses
In addition to implementing training courses for new
employees and newly appointed managers, the company
has introduced the Compliance Brush-Up Program (CBP),
employing e-learning techniques and a system for loaning teaching materials to increase employee awarenessof compliance. To educate employees about complianceand risk management on a regular basis through infor-

Compliance and Sincerity

Every year, the company designates a JAL Group
Compliance Month to increase the awareness of group
employees, promote compliance and ensure thoroughimplementation of the JAL Group Code of Conduct.
Activities during this period include group employees
completing self-evaluation check sheets, along withcompliance-awareness surveys for each division and compliance meetings and seminars conducted by lecturers
brought in from outside the company.

Compliance Network
Involving approximately 100 domestic group companies,
the JAL Group Compliance Network shares complianceinformation, raises awareness and establishes and reinforces compliance-promotion structures. Activities covered by the network include replying to questions andrequests for advice put forward by each company, providing teaching materials and engaging in educational
activities.

At the JAL Group, the term “compliance” means activities in
the pursuit of a sincere company stance. For example, the company
holds seminars on antitrust laws for branches both in Japan and overseas,
while observing the different antitrust laws around the world. These seminars
are conducted not just from the stance of what is legallypermissible, but serve to implant the desire throughout
the company to implement activities that are thoroughly
above board. This stance on antitrust is vital for the JAL
Group in its activities on the global stage. Throughout thegroup, we have established an advertising-control systemand created concrete guidelines to ensure that our
advertising is easy for our customers to understand. Here at the Legal Division, we workwith the company lawyers to support thatsystem, while also offering advice to theentire group.

Shuei Nishizawa
Legal Affairs

17

Maintaining Flight Safety
In dealing with our customers, we will adopt an empathic position that combines personal (first-person) and family (second-person) perspectives with theneed to make detached, professional (third-person) judgments. This is what
we call the “second-to-third-person perspective,” whereby we work towards
the establishment of a culture of safety in which we constantly reflect on our
activities.

The JAL View
Applying the second-to-third-person perspective in our day-to-day
operations and always reflecting on our conduct will help establish aculture of safety.

Toshihiko Sakamoto
Corporate Safety Division

While there has been a reduction in safety incidentsof late, when it comes to safety there are no absolutes. I believe that committing ourselves to ensuring
the safety of each flight is absolutely of the highest
importance. We have thoroughly instilled among all
employees the need to be constantly aware of thecustomer’s standpoint and prioritize safety in all ouroperations.
In line with the 2005 recommendations of the
Safety Advisory Group, we are attempting in ouroperations to assume the second-to-third-person
perspective. This is not as complicated as it sounds— it simply means adopting an empathic position
combining personal and family considerations with
the need to make detached, professional judgments.
In applying this second-to-third-person perspective, we encourage the practice of carrying out
unequivocal verbal communication, which helps
both parties in an information exchange confirm
that they have understood the true intent of themessage being conveyed. I believe that applying thesecond-to-third-person perspective in our day-to-day
operations and establishing a culture of safety will,in the final analysis, help us meet our customers’
hopes and expectations.
(For more information about unequivocal verbal communication and the second-to-third-person perspective, seepage 23.)

18

Safety

For the JAL Group, safety is our most important social responsibility. JAL
Group employees will unite in the pursuit of flight safety.

My Hopes and Expectations for JAL
All employees need to ask themselves “How should I act?”
The company has created and thoroughly implemented
the use of case studies of unequivocal verbal communication as one means of reducing human error. I think thisis a wonderful move. At the same time, however, it isalso necessary to evaluate the effect achieved as a resultof that move. This does not necessarily mean putting theinformation into a graph or drawing up a separate report. It is enough to be able to feel that the atmosphereof the office has changed. But we have to be careful not
to allow these developments to become mere rituals, andfor that reason it is necessary to monitor these programs
constantly.
Many companies create safety charters or corporate
charters after accidents or safety incidents have occurred.
While these are important, there is no meaning in merely
memorizing a safety charter and being able to repeat iton demand. It is vital that staff continually ask themselves
what they should be doing. That means all JAL Group
employees should engage in “action cycles,” wherein
they establish their own targets, attempt to achieve themand later reflect upon the results.
It is my hope and expectation
Akinori Komatsubara
Born in Tokyo in 1957, Komatsubara is athat by putting into practice suchprofessor in the Department of Industrial
action cycles and expanding theirand Management Systems Engineering
use throughout the entire comin the Graduate School of Science andpany that they will become theEngineering at Waseda University. His mainareas of research are related to design
norm and part of the corporate
technology to make products easier to use
culture of the JAL Group.

and technology designed to prevent humanerror. Komatsubara has been a member of
the JAL Safety Advisory Group since 2005.

19

Safety-Management System
In response to the Safety Advisory Group Recommendations of December
2005 (see page 22), the JAL Group aims to take further steps to improvesafety such that our customers will feel a greater level of confidence in ourability to ensure safe, secure flights.

Medium-Term Revival Plan
The JAL Group drew up a medium-term revival plan in February 2007 basedon two core safety measures — the building of a safety-management system
and activities to prevent accidents arising from human error.
A safety-management system is a structured scheme aimed at maintaining and improving safety. Specifically, management pledges to follow a policyof making safety the foremost priority, studying the causes of accidents andincidents as they arise and taking preventive measures to ensure they do notrecur. This includes detecting, analyzing and assessing all unsafe elementsthat could cause accidents and taking effective countermeasures. To prevent
accidents resulting through human error, the company is implementing a variety of measures.

Risk Management
Risk management is the core element of the safety-management system, andthe JAL Group has put the following risk-management measures into operation.
1 Safety-Information Database

To analyze trends and pool data relating to safety incidents, the company has
since April 2006 maintained a database of safety-related information reported
from the Flight Operations, Engineering & Maintenance, Cabin Attendants,
Airport Operations and Cargo & Mail divisions. Since fiscal 2007, JAL has also
engaged in the analysis and assessment of safety incidents that have occurred
within the JAL Group, made periodic reports of the results to various in-housecommittees and instigated measures to prevent recurrence.
2 Flight-Data Analysis

The company records and studies flight data to increase the safety and quality of operations and maintenance. From this data, we discover potential
risks, develop measures to reduce such risks and monitor changes once thosemeasures have been taken. This program is implemented for each model ofaircraft, with the data being fed back to flight crews and used in the planningof safety measures.
3 Interview-Methodology Training

For accurate analysis of safety reports, it is important to obtain a highly detailed set of information from those who originally filed the report relating to
the incident. Also, to ensure that the officers responsible for conducting the20Safetyinterviews are equipped with the necessary knowledge and skills, the company has adopted training methods based on those developed by Boeing.
4 Research into Analysis Methods

To analyze the large volume of data from safety-related employee interviews
and flight recorders, the company is engaged in joint research with Fujitsu
Laboratories and the University of Tokyo into technology for detecting allareas at risk. This research is based on the statistical processing of key-word
combinations from text data.
5 Safety Audits

The in-house safety auditors verify safety-related operational procedures froman independent third-party stance. Apart from operations in the cockpit andpassenger cabin, all safety-linked operations from ground handling at the airport to operations at JAL headquarters are subject to these audits. If problems
are found, timely corrective measures are taken and a report is submitted to
top management. Audits of 22 domestic branches, 17 overseas branches and
24 headquarter divisions were implemented in fiscal 2006.

Accident Prevention
1 Reducing Human Error

In October 2006, the JAL Group launched a project aimed at reducing
human error. Staff members responsible for safety management in the
Flight Operations, Engineering & Maintenance, Cabin Attendants, Airport
Operations and Cargo & Mail divisions are central to this project and workon developing countermeasures. At present, project members are engaged
in improving education and training so as to reduce the possibility of humanerror as well as producing a user-friendly manual.
2 LOSALine Operations Safety Audit (LOSA) is a safety program designed to identify
the background problems and causes of human error. The International Civil
Aviation Organization (ICAO) encourages the adoption of the LOSA programamong member airlines, and an increasing number of North American andAsian airlines are implementing it. To improve the safety level of all flights, JAL
carried out a monitoring program of 435 international and domestic flights— the largest in the world — between April and July 2007.
3 Policies

More than 70% of airline accidents over the past decade have been caused byhuman error. Since it is impossible to eradicate human error completely, measures must be introduced to reduce the number of occurrences and measuresestablished to stop events developing into fatal situations. Where human error results in a safety incident, but JAL believes the error was not the result ofnegligence, the incidents are not liable to the punishment stipulated in thecompany rules. We have thus created an environment in which employees
responsible for errors can readily report what has happened. The cause of theincident can then be investigated and measures devised to prevent recurrence.

LOSA poster

LOSA-Implementation
Procedures
A specially trained flight-crew member
boards the plane as an observer and monitors flight conditions from the cockpit.

The observer assesses potential inflightproblems and errors, collects the relevant data and forwards it to The LOSA
Collaborative (TLC), an independent body.

TLC analyzes the data from various perspectives, including comparisons withother airlines, and reports back to JAL.

Based on the contents of this report, JAL
investigates and implements response
measures.

21

Objective Assessments
In performing ongoing reviews of safety-management systems and planning
further safety improvements, the JAL Group receives assessments and recommendations from a variety of external organizations.

IOSA
The International Air Transport Association (IATA) Operational Safety Audit(IOSA) is a global audit program with rigorous safety standards that assesses
safety-management systems among member airlines. Following audits carried out in December 2004, JAL underwent an updated audit of 744 items ineight operational areas (organizational systems, flight, operational management, maintenance, passenger cabin, airport and ground handling, cargo andsecurity) in October 2006 and passed on all items.
IOSA accreditation

Government Assessment
Established in October 2006, Transport Safety Management Assessments arecarried out by the Ministry of Land, Infrastructure and Transport to assess thestatus of safety-management systems among all transport operators. Areas
that require improvement are identified and advice is offered. JAL underwent
inspection in November 2006 and received the following evaluation:

IOSA audit at maintenance headquarters

22• Top management is positively engaged in activities that prioritize safety, including dialogue between management and employees and the establishment of
the Corporate Safety Division with a director appointed as general manager.
• Safety information is reported in a timely and appropriate manner by employees to management.
• The Safety Promotion Center is actively used.
• Preliminary accident and incident systems are in place.
• Work-site opinions are reflected in business planning.

Safety Advisory Group
Members

We also received the following advice:

Kunio Yanagida (chairman)
Nonfiction writer (specialty: accident
and disaster crisis management)
Yotaro Hatamura
Professor, Kogakuin University; professor
emeritus, Tokyo University (specialties:
creative engineering, failure studies)
Shin’ichi Kamata
Professor, National Defense Academy(specialty: organizational theory)
Shigeru Haga
Professor, Rikkyo University(specialty: transport psychology)
Akinori Komatsubara
Professor, Waseda University(specialty: human life engineering)

Safety Advisory Group Recommendations• Confirm to what extent safety-policy measures have been achieved.
• Establish greater communication between upper and mid-level management.
• Create a mechanism for confirming whether safety training is being adequately
carried out.
• Conduct internal audits of top management and the safety-control managers
of each division.

The JAL Group established a five-person Safety Advisory Group, under thechairmanship of well-known writer Kunio Yanagida, tasked with creatinga corporate culture with a higher level of safety. On December 26, 2005,
the Safety Advisory Group presented the company with a set of proposals
that ran to 125 pages. Listed below is JAL’s response to the advisory group’s

Safety

recommendations. The JAL Group reports to the Safety Advisory Group on atwice-yearly basis regarding activities and the status of the progress made on
the proposals received, and in turn it receives comments from an expert perspective. See <http://www.jal.com/en/safety/advisory/advisory3.html>.
1 Central Organization Responsible for Safety
On April 1, 2006, the JAL Group established the Corporate Safety Division and appointed
full-time staff with extensive knowledge and experience of safety-related tasks. These
staff report directly to the division’s general manager.
2 Learning from Accidents
The company opened the Safety Promotion Center on April 24, 2006, with the major
goal of improving safety awareness among JAL Group staff through educational activities
with an emphasis on learning from past safety incidents (see pages 24–25).
3 Accident Case Studies
Since December 2006, the company has displayed wreckage at the Narita and Haneda
Maintenance centers to accompany the information presented in accident case studies
and help prevent the recurrence of such incidents.
4 Sharing Safety Data
In cases where a safety incident occurs at a specific division, the relevant facts and measures to prevent recurrence are shared among other divisions and the group.
5 Preventing Human Error
In April 2006, the company distributed a collection of case studies of unequivocal verbal
communication (see right) to some 40,000 group staff and followed this up by distributing
English copies to approximately 4,000 non-Japanese crew members and overseas staff.
6 Cultivating a Culture of Safety
The company has implemented group-wide educational activities related to staff adopting a “second-to-third-person perspective” (see right) when dealing with customers.
Education concerning human error has also been conducted for heads of organizations
directly related to safety.
7 Links with Administrative Authorities
In fiscal 2006, the company hosted a series of sessions for JAL staff and air-traffic controllers to meet and engage in informal talks. In all, 46 sessions were held — approximately
four times as many as in fiscal 2005. The company also invited the air-traffic controllers
to tour company facilities and experience flight simulators in an attempt to promote amutual understanding with regard to operational safety.
8 Spontaneous Thinking and Action

Unequivocal Verbal
Communication
By ensuring that both parties in a routine business conversation understandthe message each is trying to convey,
unequivocal verbal communication helps
prevent human error.

The Second-to-Third-Person
Perspective
If you are a passenger experiencing theoperations of an airline, you adopt a firstperson perspective. Where a family member is the passenger, this becomes thesecond-person perspective. Airline staff
carrying out their duties without properly
considering the position of the passenger
constitutes a third-person perspective. JAL
staff have to adopt an empathic position
that combines personal and family
perspectives with the need to makedetached, professional (third-person)
judgments. This we term the “second-tothird-person perspective.”

Middle-Management Meeting
Since February 2006, middle-management staff from departments throughout thecompany have gotten together for a general meeting once a month for a free exchange of ideas, transcending company and work-site affiliations, about matters relating to the JAL Group.
Unification Project
Thanks to the efforts of these middle-management staff, communication channels
among departments and divisions have expanded and improved since September 2006.
Bottom-up Management
To promote the filing of improvement proposals and other spontaneous activities fromfield divisions, the company has created a system for interdepartmental problem solving.
Personnel Exchanges
Since April 2006, junior staff with approximately three to six years’ experience haveparticipated in joint training sessions to provide an understanding of the content of
one another’s work and how their responsibilities fit in with those of the overall groupso as to boost a sense of teamwork.

Middle-Management Meeting23

Learning from the Past
The JAL Group is using the tragedy of flight 123, which crashed into Mount
Osutaka on August 12, 1985, and the lessons that can be learned from thisdisaster to raise group-wide staff awareness of the importance of safety
through a range of activities. These include tours of the Safety Promotion
Center and seminars featuring presentations by staff members who were directly involved in the accident.

Employee Education
In July 2002, the JAL Group implemented the education and training of staff
to support those who have lost family members in group-related accidents —a move that took place against the backdrop of global trends relating to family assistance in postaccident situations (see below). This project has its origins
in the educational program for facilitators tasked with supporting families ofStaff personally involved with flight 123 at Mount
Osutaka relate their experience of the disaster.
victims of disasters such as the flight 123 accident, and it has now developed
into a program for training personnel in the Accident Prevention Division. We
are also conducting educational activities that emphasize learning from thepast. These activities are directed at staff throughout the entire groupand include sessions where employees can listen to the recollections of veteran staff who were personally involvedin postaccident support after flight 123.
Sessions for junior employees to hear
the stories of these veteran staff have been
The facilitator training program, which commenced in 2003, washeld on four occasions since fiscal 2005,
originally a training program using accident-related materials. Thereand 694 people have participated so
are limitations, however, to what can be achieved with such sessions. To
far. Through these sessions, JAL Grouplearn more about the reality of air disasters, it is necessary to hear the words ofthose who have experienced such events. It was while gathering this
employees can come to understandkind of narrative material that I realized we should not use it justthe grief of the victims’ families andin training specialist personnel but should share it with all staff.
the suffering of those who were
I learned a lot while meeting people at various work sites, inconnected with the accident, whilecluding former employees, and in listening to their stories. It isalso becoming aware that this isover 20 years since the accident on Mount Osutaka, and many
not some past event without direct
people who were involved with the accident then are no
relevance to the present. We believe
longer with the company. One way for the JAL Group to
it vital that staff emerge from thesetake this negative legacy and use it in a positive mansessions
with a renewed sense ofner is to pass on the lessons of the horror of aircraft
disasters as well as the pain suffered by the victims’safety awareness and a determination
families and those connected with the accident,
to do everything to prevent such acciboth inside and outside the company.
dents from happening again.

Value of Firsthand Accounts

Akemi Hamazaki
Aviation Security and Risk
Management Group,
Corporate Safety Division

24

Family AssistanceIn 1997, the United States passed the Foreign Air Carrier
Family Support Act, which applies to all airlines serving the U.S.
This act makes stipulations for the provision of systematic support
for the victims of air disasters and their families. In response, airlines
around the world have established family-assistance guidelines.

Safety

Safety Promotion Center

The Weight of
Responsibility

Following recommendations of the Safety Advisory GroupBy making a tour of the Safety Promotion Center,and families of the victims to exhibit the wreckage of
I was able to rethink a number of things, incluJAL flight 123 so that such a terrible accident should
ding my daily work, the tasks I fail to carry out sufnever recur, the JAL Group established the Safety
ficiently well and my personal attitude. As someone
Promotion Center in April 2006.
who comes into direct contact with aircraft, I ask myself
In addition to the aft pressure bulkhead, vertiwhether I’m making sufficient efforts in my work or if I’m
cal stabilizer and aft fuselage, recovered fromfully aware of all aspects of it. I felt I truly understood thehorror of the flight 123 disaster from the photographs ofthe crash site, the center exhibits records of thethesurvivors being rescued by helicopter and from theflight route as well as materials related to aircraft
wreckageitself. And I was struck by the feelings of bitterdisasters in Japan and overseas. In June 2006, theness and anger from members of the victims’ families
center added messages written by passengers on
as expressed in the exhibits. When I reflect on that, I
flight 123 just before the crash and aircraft parts
become keenly aware of the tremendous responsicollected by members of the bereaved families whobility that my job carries. In future, I will take theclimbed to the crash site on Mount Osutaka.
opportunity to revisit the center whenever I feel
The center is used as a research facility so that thethat I’m losing sight of my responsibilities.
lessons learned from the accident will never be forgotten,
Takuya Nomura
to increase safety awareness among our employees and so
JAL Aircraft Maintenance Narita,

that each member of the JAL Group can understand the imporFlight Check Maintenance Divisiontance of flight safety. The center is open to anyone with an interest inaviation safety as well as to people engaged in safety-related jobs, and it canbe visited by appointment. Over 20,000 people, both from within and outside the company, visited the center in the year following its opening. The JAL
Group intends to continue using this facility as a foundation for safety.

Lessons for Future Generations
The majority of JAL Group employees have no
direct connection with flight 123, and many staff
now in their 20s were only children when the accident occurred. The significance of this center isin communicating to this younger generation thereality of the disaster, not just through words andphotos but through the flight wreckage, and having
all staff ask themselves what they can do to prevent
disasters like this from being repeated. Visitors areappalled when they look at the seat plan and realize how many people lost their lives. It’s importantthat visitors leave the exhibits with such feelings.
Sharing the pain that was suffered then and passing
on the lessons of that accident to future generations
lie at the very core of safety awareness.

Yutaka Kanasaki
Safety Promotion Center chief,
Corporate Safety Division

Vertical stabilizer exhibited at the center

Guide to Safety Promotion Center
03-3747-4491
03-3747-4493
Address: Daini Sogo Building 2F, 1-7-1
Haneda Kuko, Ota-ku, Tokyo 144-0041
Access: Five minutes’ walk from Seibijo
Station on the Tokyo Monorail
Open: Monday to Friday (closed holidays
and during the year-end holiday period)
Tours: Conducted five times a day at
10:00, 11:00, 13:00, 14:00 and 15:00.
Each tour takes approximately one hour.
Tours conducted by appointment only25

Safety Incidents in Fiscal 2006
As can be seen from the table below, the number of serious incidents andflight irregularities underwent a major decrease in fiscal 2006 comparedwith the previous year. We believe this was a result of group staff uniting toengage in a variety of measures designed to improve safety. Unfortunately,
there was one accident (see opposite page). The number of safety incidents
that arose throughout the year, details of the major incidents and follow-up
measures are presented in the following section.

Safety Incidents in Fiscal 2006
Type of incident

Fiscal 2004

Fiscal 2005

Fiscal 2006

Aircraft accidents

2
1
113

0
5
131

1
0
99

Serious incidents
Flight irregularities

Incident Rate per 1,000 Flights
Type of incident

Fiscal 2004

Fiscal 2005

Fiscal 2006

Aircraft accidents

0.005
0.002
0.267
422,955

0
0.012
0.313
417,453

0.002
0
0.235
421,833

Serious incidents
Flight irregularities
Total no. flights

Aircraft Accidents
The Ministry of Land, Infrastructure and Transport defines aircraft accidents as
an aircraft being involved in a crash, collision or fire, or death or serious injury
to persons arising as a result of aircraft operations.

Serious Incidents
The transport ministry defines serious incidents as cases that, though not inthemselves aircraft accidents, are recognized as having the potential to develop into accidents, e.g., veering off the runway, the use of emergency exits,
onboard fires and smoke, irregular declines in cabin pressure and also when
the aircraft encounters erratic meteorological conditions.

Flight Irregularities
While not developing into situations that immediately affect flight safety,
flight irregularities are cases where it becomes necessary to modify scheduled destinations or return to the point of departure as a result of equipment
trouble. Flight irregularities also include special situations, such as those that
require the air-traffic controller to issue a directive to change the flight path.

26

Safety

Safety Incidents and Countermeasures in Fiscal 2006
Flight-Crew Member on Restricted
Medicines
A flight-crew member diagnosed with a benign tumorof the parotid gland underwent an operation to havethe tumor removed in May 2006 while on leave but
failed to inform the company doctor of the situation.
After the operation, he took four types of medication
and was on duty on seven flights from June to July —a total of 9 hours, 50 minutes. These medicines did
not make him drowsy, but possible side effects included hypersensitivity, stomach and bowel irritation andheadaches. Flight crew are prohibited from serving
onboard within 24 hours after taking such medication.

Passenger Injured owing to Turbulenceon Flight 3514
On July 4, 2006, JAL flight 3514 encountered unexpected turbulence while en route from Sapporo to
Fukuoka, and a male passenger towards the rear of
the passenger cabin, who was not in his seat at thetime, injured his right ankle. The passenger reported
this to the company two days later, when it was revealed that he had suffered a fracture to the rightfibula. As a result, this incident was ruled to be an
aircraft accident by the Ministry of Land, Infrastructure
and Transport.

Flight 2620 Makes Emergency Landing
On February 17, 2007, JAL flight 2620 (MD-90), from
Hanamaki Airport to Kansai International Airport,
made an emergency landing. The flight crew followed
appropriate fire-control procedures on the flight deckin response to a flashing warning light indicating an
outbreak of fire in the cargo bay while the aircraft was
making its descent before landing. The aircraft’s engines were shut down on the taxiway, and passengers
alighted via two doors, located fore and aft. Checks
were carried out after landing, but no traces of fire
could be found, and there were no injuries to passengers or crew.

Countermeasures
We made a public announcement of this event and confirmed that no other cases had occurred in the period to July27, 2006. As a health-management response, we prepared
comprehensive guidelines about such health matters, distributed these to all flight crew, updated in-house regulations
and implemented an education program.

Causes and Countermeasures
According to the accident report of the Aircraft and Railways
Accidents Investigation Committee, the aircraft was shaken
as a result of the impact of localized disturbances in air currents owing to cumulonimbus clouds at the fore of a warm
weather front, the seat-belt sign was off and it is presumed
that the passenger lost his balance while walking in theaisle.
The flight crew and ground staff will collaborate to thebest of their abilities to prevent injuries arising as a result of
turbulence.

Causes and Countermeasures
The duct used for conveying warm air from the engine toprevent the wings icing had become separated from theconnector (on the left wall of the cargo bay), and dust was
whipped up by air leaking from that section. It is presumed
that the fire detector was set off after this dust was identified as smoke. The reason for the loose duct was a rupture
at the point where the duct was welded to the wall, and thispresumably allowed the connector to slide back and forth.
JAL implemented emergency checks on all 42 MD-90
and similar-model MD-81/87 aircraft and completed parts
replacement and/or repairs to nine aircraft (including the aircraft in question) where cracks were found in the aforementioned duct welding. We implemented new requirements
concerning periodic detailed inspections of this section.

27

Universal Design

JAL’s Philosophy
A core value shared by the entire JAL Group is that we consider ourwork from the stance of our customers. This is the starting point forour implementation of universal design.

Jun Furuhata
Passenger Experience Planning

28

Many passengers experience nervousness and stress whenreserving and buying tickets, checking in, boarding, collecting luggage and carrying out numerous other procedures
connected with air travel. We consider it vital to do whatever we can to reduce that stress and help our passengers
enjoy a pleasant flight. We impress upon all our employees
the need to put themselves in the position of our customers, remain sensitive to any possible sources of inconvenience, consider how to solve such problems and thus
provide a better service.
To help spread this philosophy throughout our company, we have promoted the concept of universal design.
One example of this is making a people-friendly airport. By
listening to the views of ground staff, conducting repeatedcustomer-satisfaction surveys and redesigning signs, we
aim to maximize convenience for our customers, irrespective of age, language or physical ability. This undertaking is
not limited to airport facilities, but is applied to everythingthat our customers see and use.
There is a tendency to consider design as signifying
simply the design of visible objects, but there is more to
the concept. In order to offer all our customers a pleasantflight, it is essential that our staff achieve complete empathy with customers and thereby acquire the knowledge
they need to attend to them. All these activities together
constitute universal design at JAL.

Stakeholders

We value dialogue with all our customers. By putting ourselves intheir place, we can act accordingly and build a trusting relationship.

My Expectations of JAL
It is my hope that JAL will implement universal design throughout its
global operations.
Universal design promotes an agenda of equality, an inclusivity,
for all people of all ages and abilities. For the design community,
this charge is one that embraces every individual and their uniquewants and wishes as a vital concern in the creative pursuits bywhich we conceive, build and manufacture all places and products.
For me, it is both a professional and personal joy to work witha company that goes beyond merely understanding the needs oftheir customers, but rather embraces each consumer and their individual concerns. JAL exemplifies this corporate culture. By enhancing the education of its employees, the JAL “family” represents thehighest level of training available. It has been my great pleasureand honor to serve JAL in this capacity. All great design begins withknowledge. And when knowledge is combined with empathy for
those we serve, by design, then the result is extraordinary.
With the dedicated effort JAL has initiated for the most universal aircraft and support services, we are in a position to makean impact on the entire industry of air travel
Patricia Moore
and mass transit. This attitude and potential
At the age of 26, industrial designer
extends to the environment of the terminal,
Patricia Moore began to have doubts
host communities and all related personnel.
as to whether she was really producing
designs that were easy for everyone
Such a consortium approach benefits not
to use. In a three-year undercover inonly JAL, but every participating business andvestigation, she disguised herself as an
citizen. It is thrilling to recognize the extent
elderly person so as to experience theworld from such a person’s perspective.
and power of universality in design. I have
She later set up her company, Moore
every confidence that because JAL’s commitDesign Associates, which today receives
ment to this goal starts with the CEO and fila large number of commissions fromters through every level of management, ourboth public and private institutions andis involved in developing environments,
future efforts will demonstrate, on a global
products and services based on the prinlevel, the power of universal design.
ciples of universal design.

29Together with Our Customers

Assuring All Passengers a Pleasant Flight
Universal Design as a Guiding Principle
Universal Design Coordinator
Universal Design Coordinator is a qualification sponsored and accredited by theInstitute of Advanced Studies in Universal
Design, a nonprofit organization (NPO)certified by the Cabinet Office in Japan.
The qualification attests that the holder
has specialized knowledge of areas including social welfare and medicine, understands universal design theory and canutilize this in products and services.

Care-Fitters
The notion of being a “care-fitter” is one
that originated in Japan and is directed
at acquiring particular skills by those who
frequently deal with senior citizens andpeople with disabilities. To this end, acare-fitter qualification is awarded by the
Nippon Care-Fit Service Association, an
NPO. JAL Group employees with the qualification
wear identifying badges
so that customers requiring their assistance mayeasily recognize them.

Automatic check-in terminals
with easy-to-understand signs

30

The customers of the JAL Group represent a broad cross section of society
and as such have a diverse range of needs based on such factors as age, howfrequently they fly, language, cultural background and physical ability. We are
implementing universal design as a guiding principle to provide secure andpleasant travel for all our customers.
Our universal design philosophy goes beyond increasing the legibility of
airport signs or modifying facilities to make them easier to use. By being sensitive to any inconvenience or stress to our customers, we endeavor to findways that will help put them ever more at ease.

Universal Design Training
Since fiscal 2005, 205 of our employees have obtained the grade of Class 2
Universal Design Coordinator (see left). They are putting universal design into
practice in the development and improvement of products and services. In fiscal 2007, we set up an e-learning course on the company’s intranet, enabling
still more of our employees to understand the philosophy of universal design.
In addition, to be of service to our elderly and disabled customers, wehave assigned 300 employees with Class 2 care-fitter (see left) qualifications
to our 42 domestic airports.

More Than Just Equipment
Towards our goal of a people-friendly airport, we are taking a fresh look at
the activities of passengers from the moment they arrive at the airport towhen they board their plane. In line with this, we are making changes to our
airport signs in terms of overall style and the use of imagery, coloring and lettering so as to make them easier to understand. In March 2007, we changed
the signs on automatic check-in machines and around our check-in counters
at Haneda Airport. From fiscal 2007 onwards, we will extend these improvements to Narita and other airports. We have also introduced knives for our
inflight meals that are easier to use. In future, we plan to study how to offer
meals that are easier for all our customers to eat, based on universal design.

Stakeholders

Equipment Upgrade
Since fiscal 2005, we have been conducting surveys on the usability of ouraircraft in active service. We have made repeated checks on the ease withwhich customers can use our equipment and whether the aircraft are workfriendly environments for cabin crew. With the introduction of new Boeing
737-800 aircraft, we have made toilet door handles more user-friendly andincreased the legibility of the “occupied” signs. With the planned introduction of newly designed seats, we will change to personal-monitor controllers
and seat-reclining buttons that are simpler to operate.

Easy-to-understand instructions for the seat andfootrest

JAL Smile Support
For domestic flights, the JAL Group has established the Smile
Support Desk to help passengers with special needs, such as passengers with children up to three years old, expectant mothers,
children traveling alone and passengers over the age of 65. At thisdesk, we offer support to ensure a safe and comfortable journey.
Full details are listed in our timetable, on our website and in pamphlets at airports.
Smile Support Desk
0120-25-0001 (available daily from 06:30 to 22:00)

Priority Guest Support
In the JAL Group, we refer to passengers with disabilities and those with illness or injury as priority guests and give them precedence over our other customers. Established in 1994, the JAL Priority Guest Center responds flexibly
to a variety of conditions, such as passengers suffering from panic syndrome,autism or kidney disease, or those fitted with pacemakers or artificial anuses.
The Priority Guest Center is staffed by experienced employees who respondattentively to customer inquiries.
On international routes, the JAL Group provides special meals, such as
for diabetics and for people on low-calorie diets. We also offer inflight explanations in Braille (Japanese language), boards for written communication,
stretchers, onboard wheelchairs and toilets adapted for those using wheelchairs. Guide, service and hearing dogs may be taken on all flights.

Services for expectant
mothers and passengers withyoung children• Priority seating• Mama & Baby Odekake Guide (inJapanese)• Loan of strollers• Priority boarding

Support for children travelingalone and passengers over
the age of 65• Priority seating• Guidance to the arrivals lounge uponlanding• Original JAL toys for children

0120-747-606 (reservations and information for those with hearing and speech disabilities)
Priority Guest Center<http://www.jal.co.jp/en/jalpri>
0120-747-707 (available daily from 09:00 to 17:00)

31

Together with Our Customers

Responding to Customer Comments
At our Customer Support Center, we endeavor to provide maximum satisfaction for our customers through sincere responses to the comments we receive
and improved service.
In fiscal 2006, we received 32,263 customer comments via our toll-freecomment line, e-mail, onboard comment cards and post. Each comment istreated as a vital asset for our business and a means to improve services anddevelop new products.

Breakdown of Customer Comments
Of the comments we received in fiscal 2006, 36% were general opinions,
27% complaints and 25% praise. The number of comments received was
88% that of the preceding year.
40,00035,00030,00025,000

OthersInquiries
Opinions

20,00015,00010,0005,000
0Complaints
PraiseFiscal 2004

Fiscal 2005

Fiscal 2006

Examples of Customer Requests and Subsequent
Improvements
RequestPlease install wireless LAN Internet
connections in your domesticterminal lounges.

Improvement
Starting with our main domestic
terminals (Haneda, Osaka, Sapporo
and Fukuoka), we have launched afree wireless LAN service.

RequestPlease introduce Class J on yoursmall aircraft.

Improvement
We have introduced Class J on our
737-400 and MD-90 aircraft.

RequestOur family would like to be able
to share the air miles that we havecollected.

Improvement
We have created the JAL Card Family
Program to enable family members toshare their air miles.

Customer comments can be sent to us here:<http://www.jal.co.jp/en/information/index2.html>.

32

Stakeholders

Striving for Greater Customer Satisfaction
To understand our customers’ needs more thoroughly and improve the quality of our products and services, we set up the Customer Satisfaction (CS)
Improvement Division, which is under the direct supervision of JAL’s
president.

Service Improvement
The customer comments we receive are collected and analyzed at ourCustomer Support Center. This information is then shared with relevant
departments and used to improve our services.
Comments and inquiries concerning any of our services should be directedto this number:
0120-25-8600 (available weekdays from 09:00 to 17:00, except public holidays)
Comment cards are also available onboard.

Service Improvements Led by Female Staff
To achieve a more balanced orientation of our work towards all customers,
female JAL staff in February 2007 began working with individuals fromoutside the company to examine group products and services from a women’s
perspective (see box below).

President
CS
Improvement
Division

Corporate
Safety Division

Passenger Experience
Planning
Customer Support Center

Service Improvement

Customer comments

Customer Support Center

Relevant division

Taking a Fresh Look at Products
and Services
We recently set up the Artemis Project to think about how we can best takeadvantage of female perspectives to improve our products and services.
Artemis was the Greek goddess of hunting and childbirth, and we chose toname our project after a symbol of womanhood. We intend to take a fresh
look at all our products and services from a female perspective and do ourbest to find ways to improve them.

Chieko Nagasaka
Passenger Experience
Planning

33

Together with Our Customers

Making Safe and Relaxed Travel a Reality
In fiscal 2006, JAL’s on-time departure rate (the percentage of planes that left
within 15 minutes of their scheduled departure time) was 93.1% for domestic flights and 87.1% for international flights. While still keeping safety our
top priority, we will do our very best to improve this rate.

On-Time Departure Rates
100(%)

Fiscal 2006
domestic flights

Fiscal 2005 domestic flights

90

Fiscal 2006 international flights

80

Fiscal 2005
international flights

70

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Timely Departures
The JAL Group considers flight on-time performance a key indicator of service quality. Though there may sometimes be unavoidable reasonsfor delays, such as bad weather, punctuality is likely to be an
important consideration for customers when selecting an
airline.
To improve our punctuality and help ensure
customer satisfaction, we have established the
In 2006, we set up the On-Time PerformanceOn-time Performance Improvement Project so
Improvement Committee to enable airportthat the relevant divisions in our headquarstaff to meet and exchange thoughts and perters can work together, study the factors
spectives on how to improve punctuality. The
that impede punctuality and come up withcommittee came up with many ideas, including
solutions. In practice, this means sharing
changing the order of cabin-cleaning tasks
information between headquarters and onupon arrival, making sure that cleaning
begins earlier and working to providesite airport staff, adjusting flight schedules
more precise instructions so that pasand ship routing to prevent delays, and imsengers can board their planes smoothly.
proving the efficiency of baggage handlingWe intend to strengthen cooperationand customer assistance. Throughout thisamong the relevant departments andprocess, we conduct regular checks to ensure
further improve customer satisfacstaff members always treat safety as their top
tion through on-time departures.
priority.

Cooperation Improving
Punctuality

Kei Hideshima
JAL Sky Sapporo

34

Stakeholders

Better Guidance for Arrivals andDepartures
While there may at times be unavoidable reasons for flight delays, cancellations and route changes, at the JAL Group we do our best to convey accurate
information to our customers as soon as possible.
During fiscal 2006, we redesigned the arrivals and departures section of
our website to ensure it promptly displays the same information as our airport arrivals and departures boards. We also began a service for our domestic
routes that allows JAL Mileage Bank members to receive rapid notificationof delays and cancellations by e-mail. For our international routes, we introduced Sky Navigation, a 24-hour automatic telephone service providing arrivals and departures information.
In fiscal 2007, we plan to extend our e-mail information services. At
the same time, we will increase the number of information displays aroundcheck-in counters and boarding gates at our main domestic airports. We will
improve our facilities to give customers access to prompt and regular information on their flights.

Improving Passenger Announcements
Until recently, passenger announcements by our flight crew consisted
mainly of greetings or were to inform passengers about flightroutes. In 2004, JAL reviewed the content of passenger
announcements, and since then we have endeavored to provide detailed information concerning
flight operations. Specialized information is
We used to receive comments from pasprovided by our flight crew at times whensengers
saying they had been scared or felt
passengers may feel uneasy, such as in peuneasy during periods of turbulence. Recently
riods of turbulence and with unusual octhough, we have received positive comments
currences during the flight.
from our passengers, indicating that because of
In 2006, we analyzed passenger
the inflight announcements they felt reassured.
opinions about our inflight announceBut we will never end our efforts to improvements and shared this data among flightthe quality of our passenger announcements and through these announcements
crews to improve the quality of these anwill always try to decrease any sense of
nouncements.
unease among our passengers.
We will continuously try to improve

Reassuring
Announcements

the quality of our announcements so thatour passengers can feel more secure andrelaxed on our flights.

Takeshi Koshiishi
A300-600 captain35

Together with our Shareholders and Investors

Rapid Information Release
Disclosure and Communication
The JAL Group actively communicates with individual shareholders and institutional investors, providing them with information on our operations in a
speedy and impartial fashion. The group will continue such activities, thereby
putting shareholders and investors in a position where they fully understandJAL and are able to make responsible investment decisions.
JAL takes comments and proposals from shareholders and investors seriously and makes efforts to see that these ideas are reflected in management
decisions. The company provides timely disclosure of information for the
benefit of all shareholders and investors, including the prompt posting of updated information on the JAL website. Please see<http://www.jal.com/en/ir/index2.html>.
Along with reports of financial results, JAL also issues Community JAL
business reports mainly for individual shareholders (two editions a year aresent in print form to all shareholders, and two are available on our
website). Once a year, JAL also issues an annual report in English andJapanese to all our shareholders
and investors. The English edition isin print form and the Japanese edition is posted on our website.

Regular Briefing Sessions

Community JAL

36

The JAL Group hosts briefing sessions for domestic institutional investors
and analysts to coincide with quarterly results and the announcement of themedium-term business plan, which is usually updated annually. Recent financial results and future business plans are explained at these meetings by ourmanagement. For those unable to attend, materials used in the briefings andvideos of presentations are made available on our website. Also, we periodically visit our main overseas institutional investors to explain the current business situation, medium-term business plans and other announcements.
Finally, since we value the two-way communication with our shareholders
and investors achieved through direct dialogue, we also hold official briefings
for individual shareholders.
These materials are all available on our website. Please see<http://www.jal.com/en/ir/management/setsumeikai.html>.

Stakeholders

Shareholder Activities
Benefit Program
So that shareholders can better understand and support the JAL Group, we
operate the Shareholders Benefit Program and invite them to use groupproducts and services at a discount.

Shareholders Desk
For matters relating to the Shareholders Benefit Program and stocks, thegroup operates an inquiry counter known as the Shareholders Desk, whichhandles telephone calls, letters and e-mails from our shareholders.

General Meeting
Since our June 2006 shareholders meeting, we have made it easier forour shareholders and investors to vote by giving them access to our online
Institutional Investor Voting Platform.
We have also worked to provide the increasing number of individual
shareholders with easy-to-understand explanations of the JAL Group’s operations. For example, at our regular general meeting of shareholders, our business report was in the form of a video presentation. We will continue to takesuggestions and inquiries from our shareholders seriously and do our best to
provide appropriate responses.

Shareholder Events in Fiscal 2006
As part of the Shareholders Benefit Program, JAL holds a variety of events sothat our shareholders become better acquainted with the JAL Group and ourbusiness. In August and October 2006, JAL was pleased to show shareholders
around our maintenance facility at Haneda Airport. With the cooperation of
Kansai International Airport and Central Japan International Airport (known
as Centrair), we also hosted a lecture presentation titled “Sky Tales.” At
Kansai International Airport, attendees had an opportunity to see the site of
the new second runway, which opened in August 2007. At Centrair, investors
got a close-up view of aircraft taking off and landing from the Centrair Sky
Deck against the backdrop of Ise Bay.

Showing shareholders around our maintenancefacility at Haneda Airport

One of our pilots giving a ”Sky Tales” presentation
at Centrair

Socially Responsible Investment Index
The CSR activities of the JAL Group have been
acknowledged and in March 2007 were includedin Japan’s Morningstar Socially Responsible
Investment Index (MS-SRI) and the FTSE4Good
Index Series.

37

Together with Our Employees

A Comfortable Workplace
Balancing Personal and Professional Life
A good work-life balance is created by promoting personal development,
fulfilling leisure time and a healthy lifestyle. In encouraging each employee
to achieve his or her full potential, we can at the same time strengthen the
personnel and organizational resources of our company. The JAL Group aims
to provide facilities and policies to create an environment where management
and staff can cooperate to spread the concept of a healthy work-life balance,
and where employees can actively pursue personal development.

Work-Life Balance Campaign
This project aims to promote efficiency in everyday work, maintenance of reasonable working hours and the taking of annual leave. Through this project, it
is hoped that staff will become more aware of the need for a healthy work-lifebalance.

Flexible Working Hours
So that our ground staff can enjoy leisure time and the chance for a diversity oflifestyles, in addition to our standard starting time of 8:45 a.m. we have established five other times to choose from: 8:00, 8:15, 8:30, 9:30 and 10:00.

Work-Life Balance Day
Each week, a representative from a different department at the JAL Head Officemakes a special announcement, encouraging employees to leave at the end of
standard working hours.

Work-Life Balance Communication
This educational publication includes information on the use of leisure time andarticles based on the personal experiences of staff.

Staff Taking Maternity andChild-Care Leave(number of employees on leave at fiscal
year end)

Fiscal 2004
Fiscal 2005
Fiscal 2006

771
782
823

Vacations
We encourage staff to take long holidays.

Support Programs
Maternity and Child-Care Leave
This is a policy aimed at supporting our employees and as well the next generation of the nation’s youth. The JAL Group allows employees to take child-careleave up until the end of the month of their child’s third birthday. This systemcompares favorably with the legal requirement for a single year of leave, extendible by six months in certain cases. Almost 60% of those who use the systemtake the full period offered.

Caregiving Leave
The JAL Group also provides a system for extended leave of absence to care for
elderly parents and close relatives for up to 18 months. This too compares favorably with the legally mandated 93 days. In all, 118 employees took advantage ofthis and our shortened-working-hours system in fiscal 2006.

38

Stakeholders

Maternity Leave

A Worker and a Mother

This system aims to protect the welfare of pregnant employees by allowing them to take time off work in the
I’ve used JAL’s maternity-leave system three
period before they give birth. The system is in actimes now. The first was in 1997, and each timecordance with the legal requirement for six weeks’I’ve taken one year off work. The first two times,
leave before birth and eight after. In fiscal 2006,
I returned to work at JAL’s check-in counters, while
307 of our employees took maternity leave.

the third time I returned to my present job in generalaffairs at JAL Sky Sapporo. Returning to emAlternative Work for Pregnant
ployment after leave, I did have concerns about
Cabin Crew
whetherI’d be able to work in the same way asThis is a voluntary alternative to maternity
before,but
each time my colleagues were veryleave, under which pregnant cabin crew electwelcomingand I was able to make a smooth
to work as ground staff in the period prior totransition
back.
If I had resigned each time,birth. In fiscal 2006, 150 of our cabin crew took
it would have been very difficult to look foradvantage of this system.
a new job and difficult too to get used to
the new work. Thanks to this system, I’ve
Paternity Leave
been able to raise my young children
JAL has introduced this system to encourage fatherswith peace of mind.
to participate in the child-rearing process. Male employees can take paternity leave in the first 10 weeks after
their baby’s birth. In 2005 (the first year of the scheme), sevenemployees took paternity leave, and 12 did so in 2006.

Mieko Yoshii
General Affairs,
JAL Sky Sapporo

Working Arrangements to Suit Lifestyles
Discretionary Employment
This is a voluntary work system for cabin crew. If they meet certain conditions, employees can apply to work just 10 daysa month, which is half the full-time workload.

Cabin-Crew Reemployment
JAL, JALways and Japan Asia Airways have introduced a system enabling reemployment offormer cabin crew, from within the group or
outside, on a part-time basis. This systemallows us to tap the experience of theseworkers, while also allowing them to findwork to match their lifestyles, families,
child-rearing responsibilities and personal
interests. In January 2007, we established the online Experienced Cabin-Crew
Registration Bank so that potential staff
can promptly obtain information on employment opportunities.

Retired Staff Reemployment System
JAL has a system to provide reemployment
opportunities to all staff who reach official retirement age but wish to continue working. Retired staff
desiring reemployment are rehired by the JAL Group
Senior Center and posted to a variety of positions.

Getting back in the Air

Nearly 20 years ago, I quit my job as a cabin attendant tohave a baby, but I always thought that I would like to go back towork if I had the chance. Although I originally
worked for a different airline, my husband is a JAL
captain and I learned about the system throughJAL’s company newsletter. I applied and began workat Japan Asia Airways in 2005. I think the scheme isan excellent chance for anyone who leaves the workplace but later wants to return to cabin-crew
employment. When I went back, it had beena long time since I’d last worked on an aircraft, so there were lots of challenges. On
the other hand, the difficulties were morethan compensated for by the pleasure offlying. I’m so glad I went back to work.

Mihoko Hino
Cabin attendant,
Japan Asia Airways

39

Together with Our Employees

Human-Resources Development
Cycle
Education, training“Taking notice”
Advice from seniorcolleagues andsuperiors“Putting into
practice”

Self-development“Learning”“Who I want to become”“Ambition”
In fiscal 2006, the JAL Group conducted 235
in-house group-education and/or training
sessions, with 4,663 employees taking part.

Education and Training
The daily work of JAL Group staff demands a high level of specialist expertisein various fields, and extensive training is required to acquire that knowledge.
At our Human Resources Development Center, as well as such specialist training we provide education and training in JAL Group philosophy and goals.
At the center, we help employees acquire the knowledge and skills that areneeded in all roles within the JAL Group. Although training generally takes
place on the job, in cases where that is not possible the Human Resources
Development Center provides supplementary training and gives participants achance to meet and exchange ideas.
The diagram on the left shows the human-resources-development cycle
within the JAL Group. Through this process, we aim to create a working environment where employees can grow to reach their full potential.

Safety in the Workplace
To help our employees work securely and to their full ability, the JAL Group
has set up a system called Total Health Promotion. This scheme aims to create a pleasant workplace and to foster mental and physical health. Specialist
staff safeguard the health of our employees through mental-health initiatives,
back-pain-prevention measures, nutritional advice and strategies to deal withmetabolic syndrome.

Staff with Disabilities
In 1995, we established JAL Sunlight to promote the employment of individuals with disabilities and create an environment where they can work effectively. JAL Sunlight was accredited as a special subsidiary under a law related
to the promotion of employment for the physically disabled, and a large
number of such staff are actively engaged, working mainly in business-service
operations. In fiscal 2007, we initiated a scheme to employ staff with intellectual disabilities at our uniform-management operations at Haneda Airport. At
present, physically disabled staff make up 1.57% of the JAL workforce (March
2007 combined figure for JAL, JAL International and JAL Sunlight), and although this is below the legally mandated figure of 1.8% we will endeavor toraise the ratio further.

Pledge on Promoting Human Rights
The JAL Group does not discriminate based on gender, age, nationality, race,
ethnicity, religion, social station or physical disability — a position that is partof the JAL Group Code of Conduct. The company promotes human rights at
various in-house training venues as it attempts to further the awareness ofrespecting human rights among its employees. Please see<http://www.jal.com/en/corporate/action.html>.

Interstaff Communication
Good communication among staff and between management and employees is essential to the sound development of our business. Japan Airlines

40

Stakeholders

International conducts various meetings and discussions with the company’s
unions to build mutual trust and understanding. In this way, we can strive
together to achieve the JAL Group’s mission within society.

Female and Locally Hired Staff

Male and Female Staff in the
JAL Group
Women

47%

53%

(24,452)

Approximately half the staff at the JAL Group (including consolidated domestic affiliates) are women, and these employees are active in a broad array ofwork settings. In fiscal 2007, JAL hired 98 people as general office workers,of whom 21 were women. Around 90% of staff at our overseas offices are
locally recruited, and their knowledge is crucial to the JAL Group’s overseas
operations.
When new staff are employed by the JAL Group, such issues as genderand nationality are irrelevant: of far greater importance are hard work andthe capacity to accept challenges. While striving to recruit personnel with ambition and ability, JAL aims to provide an extensive support system to create apositive working environment for both women and locally recruited staff.

(51,497)(27,045)

Employees in Managerial andGeneral Positions
General81%(41,909)(51,497)

Managerial

19%Dream Skyward AwardMen(9,588)

The Dream Skyward Award was established to recognize achievements madeby JAL and group companies in furthering an understanding of the JAL corporate philosophy, increasing organizational vitality and helping shape adynamic corporate culture. In fiscal 2006, the award’s third year, 44 Annual
Prizes were awarded to workplaces and individuals at group companies, overseas offices and subcontractors.

A Bridge Between Departments
When I was offered a job as an executive officer, I’d spent 30 years as a cabin attendant
and was unsure whether or not I should accept. Still, I decided that the position would
be a fresh chance to gain an overview of the
Cabin Attendants Division’s work and to
facilitate the exchange of opinions between
divisions. Cabin crew spend more time indirect contact with customers than any other JAL employees and consequently receivea variety of comments and suggestions for
improvement. Since I became an executive
officer, the amount of time I spend communicating with other divisions has increased
dramatically. In future, I’d like to expand
channels of communication between divisions and use my position as a member of
the Cabin Attendants Division to facilitate
the transfer of comments and take immediate action on suggestions for improvement.

Men

Men and Women in
Managerial Positions

89%(8,509)(9,588)Women

11%(1,079)Overseas Employees Locally Recruitedand Dispatched from Japan
Locally
recruited90%(7,301)

Dispatched from
Japan

10%

(6,555)(746)Managerial and General Positions at
Overseas Offices
General86%(6,285)(7,301)

Locally
recruitedManagerial

14%

65%

(1,016)

Yoriko Nagata
Executive officer and deputy
general manager,
Cabin Attendants Division

Locally Recruited andDispatched Employees inManagerial Positions(as of March 2007)(1,016)(664)

Dispatchedfrom Japan

35%
(352)

41

Together with Society

Air Transport as a Bridge to Society
Wings of Love
With the JAL Group’s Wings of Love program, students from children’s homes
across Japan are invited for a three-day trip to Tokyo. The program started in
1988, and to date about 1,900 children have participated. For the program’s
20th anniversary this spring, 29 elementary school pupils from six regions ofJapan came to Tokyo. Originally devised by our employees, Wings of Love isfunded by staff contributions and run by volunteers among our staff. The JAL
Group manages the overall project, offers support and provides free air tickets.

The Importance of Friends
Our original intention with Wings of Love was simply for the children to enjoy
themselves through such activities as visiting theme parks. Later, we decided
it would be better to develop the program to offer lasting benefit to the children as opposed to simply letting them have fun for three days. To this end,
in 2004 we began putting children from different homes into small groups
so that they could go sightseeing together in Tokyo and make new friends.
Volunteer JAL staff accompanied the children and looked after them as they
got to know each other. The theme of Wings of Love 2007 (March 25–27,
2007) was “Making New Friends from Faraway.”

Wings of Love 2007 Main Events

A Rewarding Experience
I learned about the Wings of Love program throughour company newsletter and decided to participate as avolunteer. During the program, staff from different sectionsof the JAL Group spent three days together with a group ofchildren. It was an extremely rewarding
experience to work together as a teamplaying games, taking part in quizzes
and having fun through new challenges.
I think the adult participants learned alot from meeting the children andhearing their thoughts.

Rika Suwa
Cabin attendant,
Hokkaido Air System

42

Day 1 Welcome Party
The children were split into
groups for games and quizzes
and to get to know each other.
For the second half of the party,
the children enjoyed traditional
comic storytelling and papersilhouette-cutting performances.
Day 2 Tokyo Adventure Trail
The students followed an adventure trail around Tokyo
using clue cards provided by staff. They split into six
groups and explored two Tokyo sightseeing spots.

Making Souvenir
Scrapbooks
The children filled scrapbookswith photos from group activities, pamphlets and souvenirs
from sightseeing spots.
Day 3 Haneda TourThe students took part in a study tour of the maintenance facilities at Haneda Airport.

Stakeholders

Keeping in Contact with Children’s Homes
To begin with, when we invited children to take part in the Wings
of Love program, we chose participants from several different
children’s homes in each selected JAL region. More recently,
however, regional offices have selected a single institution fromtheir area and invited all the Grade 6 students from the children’s
home as a group. In this way, the children are less nervous about
taking part in the activities since they already live together, andthey can later share their memories of the program as friends.
When we choose the areas, we give priority to regions further
away from Tokyo. It is also a prerequisite that JAL staff from thatarea visit the children’s home throughout the year and build a
relationship of trust with the institution. In the Hiroshima andNagasaki regions, for example, our staff took part in Christmas
parties at the children’s homes and helped strengthen the ties
between the institutions and the JAL Group.

Learning More about Children’s Homes
In running this program, we are well aware of the need to further our understanding of both the children we invite and thehomes where they live. Since the 2005 Wings of Love program,
we have held preparatory training sessions for volunteers before
each year’s activities. The annual training typically involves inviting
staff from the children’s homes and hearing from them about thechildren’s daily lives and how best to interact with them. In recent
years, an increasing number of children have been admitted tosuch institutions because of child abuse. The training sessions arean opportunity for participants to learn about the backgroundand scale of such social problems.

Volunteer Work to Meet
Changing Times
Many of the children participating in the program have never been on a plane or visited
Tokyo. To provide them with a variety of new
experiences, we have in recent years been accepting invitations from the JAL Hiroshima Office to take part in the Wings of Love program.
We believe that the children can broaden
their horizons through activities they wouldn’t
normally experience and by making friends
with children from institutions outside the prefecture. Of the children who have taken part in
the program so far, many have become moretalkative and lively as a result. Many of ouryounger children tell us how they’re looking
forward to taking part.

Tetsuo Kamikuri
Director, Hiroshima Shinsei Gakuen(social welfare nonprofit organization)

Information Gathering and Rigorous Preparation
Every January, two employees from the JAL Group are selected to have responsibility for running the Wings of Love program office. They spend aroundthree months in the Public Relations Division at our headquarters, where theylearn about the ideas behind the program, its aims and how to plan safe andpractical activities for the children.
The program also provides support to children with special health needs.
Prior to the activities, the program’s office contacts children’s homes to collectinformation on any special health needs and informs volunteers as necessary.
Lastly, during the program itself, nursing staff are available to provide help
and advice on health issues.
Every year, it is necessary for us to rethink the contents of the Wings ofLove program to keep pace with social changes. Our aim is not just to provide
a fun time for the children: we are continually working to create a programthat will both be useful in the children’s futures and a source of personal
growth for employees who volunteer to take part.

43

Together with Society

Corporate Citizenship Activities in Fiscal 2006
The JAL Group will fulfill its responsibilities as a corporate citizen as outlinedin the Code of Conduct. Through active participation in social activities by
each employee, JAL aims to deepen its relationship of trust with society.

Social Conduct Guidelines• As a corporate citizen, the group will support activities to aid children andyoung people, who are the key to all our futures. We will also help thosewith financial or physical difficulties and support activities that show respect
for nature.
• The JAL Group will use its position as an air-transport business with a network uniting Japan and the world to encourage both human interaction
and cultural activities.
Pacific Music Festival• The group will actively plan and participate in various social activities, including those at the local level.
Cooperation with external groups

Offering other kinds of help

Offering assistance with transport

Employee volunteer work

International Exchange among Young PeopleChildren’s Haiku CampJAL Scholarship Program

Winners of the World Children’s
Haiku Contest, organized by the
JAL Foundation, were invited to theWorld Children’s Haiku Camp 2006 in
Matsuyama, Ehime Prefecture, for haiku
appreciation and international exchange.

Students from a number of other countries in Asia and Oceania
were invited to take part in summer schools in Tokyo, Kanazawa
and other locations in a joint project with the JAL Foundation.

Art and Cultural Activities
Assistance with Social and Cultural Events

Pacific Music Festival

The JAL Group provided support for the 2006 World Heritage
Hagi Symposium and a museum conference.

In partnership with the city of Sapporo, the JAL Group in 2006
supported this program, which started in 1990, to assist the next
generation of young musicians from around the world.

JAL Otobutai Concerts
In 2006, the JAL Group supported the Otobutai concerts, as it hasdone since this series of performances by Japanese and overseas
artists at historic sites in Kyoto and Nara started in 1989.

Supporting New National Theatre and Mori Art
MuseumAssistance with Art Transport
The JAL Group assisted in the transport of foreign artworks for
exhibitions across Japan, and Japanese artworks for exhibitions invarious locations overseas.

Environment-Conservation Activities
Field Trip to Hokkaido for Employees
JAL Miles for Eco(see page 49)

Preventing Desertification in Inner Mongolia, JAL Sky(see page 49)
Eco China
Flight-Crew Project to Help Reduce CO2 Emissions(see pages 46, 51)

Tropospheric Observation

44(see page 48)

Support for the World Wide Fund for Nature (WWF)and the Earthwatch InstituteSupport for the 17th International Conference on
Bear Research and Management
Volunteer Tree Planting in Hokkaido
JAL Global Environmental Seminar(see page 48)

Stakeholders

Education and Welfare of Young People
Emergency Humanitarian Aid

Wheelchairs with Wings

Following the May 2006 Java earthquake, the JAL Group provided free transport for 32 NGO staff and 19 tons of emergency
aid from the Japanese Red Cross Society, the Korean Red Cross
and regional organizations. We also raised ¥1,520,000 throughdonations from employees and a charity concert for staff.

Waiving surplus cabin-baggage charges for wheelchairs repaired
by Japanese high school students and sent abroad

Miles for Special Olympics
We support the Japan Committee of the Special Olympics
through volunteer work, dispatching staff to the committee officeand by encouraging JAL Mileage Bank (JMB) members to makedonations using their air miles.

Miles for Children’s Vaccines
We support the Japan Committee Vaccines for the World’sChildren by encouraging JMB members to make donations using
their miles.

Support for UNICEF
The JAL Group supports UNICEF
through assistance to the Japan
branch of the organization. Since
November 2006, we have extended
onboard fund-raising from threeof our U.S. and European routes toall our international flights. Other support includes painting the
UNICEF symbol on our aircraft, helping with charity events, selling
UNICEF cards onboard, placing collection boxes in our Narita andKansai airport lounges and transporting coins collected for the
UNICEF Change for Good campaign.

JAL Group Young Green Squad
Junior staff from the JAL Group are engaged in a number ofvolunteer activities. In fiscal 2006, 50 employees from 42 groupcompanies divided into four groups and participated in volunteer
work at kindergartens, nursery schools, free schools and farms. A
group of 100 employees, mostly past participants in the program,also took part in a project to clean the banks of the Ara River inTokyo.

Essay Contest
The group supports the children’s essay contest run by the Japan
Association of the United Nations World Food Programme.

Support for NPOs and NGOs
Transport support for the Japan NGO Network for Education,
Japan Association for Refugees, the Japan branch of Amnesty
International and various other NPO and NGO projects

Sponsoring sports classes taught by members of JAL
Rabbits (women’s basketball) and JAL Wings (rugby)

Charity Event Assistance
The JAL Group supports charity activities, such as Care Wave — amusical charity event — social development events and a concert
organized by the Japan International Volunteer Center.

Pink Ribbon Campaign
Since 2004, JAL has supported the Pink Ribbon
campaign, which serves tohighlight the importance ofearly detection and treatment of breast cancer. On
two of our domestic routes,
we initiated Pink Scarf
Flights, on which Pink Ribbon
badges and cards are distributed to passengers. A total of 678
Pink Ribbon brooches were also sold to staff last year and part ofthe proceeds donated to Breast Cancer Network Japan.

Support for Local Educational Projects
JAL staff from our head office in Tokyo’s Shinagawa Ward gave
talks at local middle schools about their experiences working at
JAL. We also assisted with job-training programs at our Kobe
Office and airport facilities.

Extracurricular Lessons
We advertised throughout Japan for elementary schoolchildren
and their parents to take part in study trips to our maintenancefacilities. We also made efforts to increase interaction with local
areas through conducting classes around the nation, explaining
our work to schoolchildren.

International
Cooperation Volunteer
Activities
Volunteers among our staff
made picture books to send tochildren in Laos and Cambodia.
They also made cloth toys forchildren in Cambodia.

Fair-Trade Learning Activities for Employees
Santa Claus on the Airplane(a volunteer project by

Narita staff)

Love-Wing(a volunteer project by Kansai Airport regional

staff)

Please see JAL’s website for further information on these
activities. The JAL Foundation’s website also contains information on its joint programs with the JAL Group.
<http://www.jal.com/en/society><http://www.jal-foundation.or.jp/indexe.htm>

45

Our Responsibilities

The JAL View
As a member of the flight crew, I am constantly trying to thinkup and put into practice new ways to reduce our impact on theenvironment as much as we can.

Koji Matsunami
747 captain46

In early 1990, flight-crew members set up a fuel-efficiency
committee to explore ways of flying in an eco-friendly
fashion. This committee has since been reorganized as
Operations Division Team –6%. We meet every two months
and discuss how we can avoid using excess fuel and communicate the results of these discussions to our fellow
flight crews.
The efforts of Operations Division Team –6% are seen
in various ways. Auxiliary engines provide electricity for onboard air-conditioning and lighting while the aircraft is on
the ground with the main engines disengaged. Since theauxiliary engines consume between 600 and 700 liters offuel per hour, however, we try not to start up these engines
until shortly before takeoff and rely on ground services forelectricity and air-conditioning. We also attempt to conserve as much fuel as possible during ascent and recommend efficient cruising speeds to our fellow flight crews.
For example, if we’re flying with a strong tailwind, we canreduce speed and still reach the destination on schedule,
which means we can fly in an eco-friendly manner while
maintaining punctuality.
Team members discuss various measures, such as taxiing to the arrival gate on three rather than four engines
and making aircraft lighter by offloading unnecessary personal effects, even if this reduces the overall weight by justa couple of kilos.

Environment

As an airline, JAL exerts an impact on the environment. We will try tounderstand the nature of this impact and work to reduce it.

My Hopes and Expectations for JAL
It is certainly valuable to make every effort to reduce the weight oflarge aircraft even by a couple of kilos. Small though the difference
may be, it will still help in conserving energy.
I’ve had many opportunities to discuss energy conservation at a variety of venues, including examples of
how manufacturers of household electrical appliancesand cars devise very subtle measures for saving energy. Before the birth of the hybrid car, which cut fuelconsumption by as much as 40%, automakers were
working on reducing vehicle-body weights in units ofjust 50 to 100 grams so as to improve fuel efficiency.
Aircraft design will probably follow a similarcourse in the future. When all unnecessary elements
have been removed from the plane and energy-saving
efforts seem to have come as far as they can go, newtechnologies that radically reduce energy consumption are certain to arise. That has been the patternof equipment improvement and energy-conservation
technologies in the past. But such breakthroughs cannot be achieved without a constant, low-profile dedication to detail. Once aircraft makers hear how JAL isusing its ingenuity to reduce weight by even a coupleof kilos on every plane, positive changes in aircraft
design could well result.
As one possible service option, I believe it’s worth
recognizing that reaching the destination as quickly
as possible is not the sole mission of air transport.
Indeed, if it becomes possible to fly the aircraft at
somewhat lower speeds — and thereby conserve fuel— there’s a chance that we could see the birth of
new energy-conservation initiatives.

Itaru Yasui
Born in Tokyo in 1945, Yasui is the vicerector of the United Nations University inTokyo, a role he assumed in 2003 following positions as professor of the Instituteof Industrial Science and head of theCenter for Collaborative Research, both at
the University of Tokyo. His specialties are
inorganic chemistry, environmental scienceand research collaboration between industry and academia. He makes many broadbased proposals touching on a variety ofenvironmental issues on his website and is
the author of numerous books.

47

Environmental Social Activities

Contributing to Environmental Conservation
Tropospheric Observation

Continuous CO2-measuring equipment

To investigate the mechanism of atmospheric variations connected with
global warming, the JAL Group has since 1993 conducted a troposphericobservation project. In this, we collect samples from the atmosphere onscheduled international routes. We originally installed dedicated monitoring
equipment on two aircraft flying between Japan and Australia, collecting
samples from the atmosphere at an altitude of around 10,000 meters approximately twice a month. Those samples were brought back to Japan and presented to the Meteorological Research Institute of the Japan Meteorological
Agency for analysis of the concentration of greenhouse gases, especially carbon dioxide and methane.
In 2003, the JAL Foundation and National Institute for Environmental
Studies developed continuous CO2-measuring equipment (CME), which has
now been installed on five aircraft and is monitoring CO2 concentrations onroutes around the globe.
Please see the JAL Foundation website for more information:<http://www.jal-foundation.or.jp/indexe.htm>.

Supporting CO2 Research
There are various causes of global warming, but more than half are related to theimpact of carbon dioxide. It’s believedthat around half the CO2 produced fromthe burning of fossil fuels has found its
way into the atmosphere. But we don’tknow precisely where the rest has gone.
Part has been absorbed by the oceans
and part has been absorbed by terrestrial
plants. Further, it’s not certain whether
CO2 will continue to be absorbed in thesame manner in the future. That’s why
we’re using aircraft to help us understandwhere and how CO2 is being absorbed.
Monitoring was carried out at various terrestrial locations before JAL began
tropospheric sampling, but the numberof sites was insufficient and there wasa lack of aerial data. If we can increase
the amount of data gathered at various
locations by aircraft, we’ll be able to develop a more detailed concept about CO2
absorption rates around the globe. Once
we’ve accumulated more data, it’s myhope that we’ll be in a position to make asignificant contribution to CO2 research.

Toshinobu Machida
Center for Global Environmental
Research, National Institute forEnvironmental Studies

Volunteer Tree Planting in Hokkaido
Some 160 JAL Group employees from Hokkaido and their families participatedin a project called Seven-Eleven Midorino Kikin as volunteer tree planters.
Midorino Kikin is a fund designed to restore forest areas around Lake Shikotsu
in southwestern Hokkaido after they were uprooted by a typhoon in 2004.
The volunteers planted 1,080 spruce and fir saplings on the 1-ha site forwhich the JAL Group was responsible, and we look forward to the day whenthese trees will once again become an integral part of the local ecosystem.

48

Environment

Siberian Wildfire Reporting
Forests absorb CO2 emitted from the combustion of fossil fuels, and many
believe this absorption helps to mitigate global warming. The Siberian taiga
is the world’s largest area of forest, but it has recently been releasing large
amounts of CO2 owing to the outbreak of numerous fires. This problem isexacerbated by the thawing of the region’s permafrost, which has released
into the atmosphere large amounts of methane — a greenhouse gas with
21 times the global-warming impact of CO2.
In an effort to keep the damage to the Siberian taiga to an absolute minimum, Hokkaido University, the University of Alaska and the Russian Academyof Sciences have collaborated on a project to detect and help prevent the
spread of wildfires. JAL is also cooperating with these efforts. JAL flight crewon European routes over Siberia report any wildfires they observe. Fiscal 2006
was the fourth year that JAL flight crew have been involved in these activities,
and the result was the filing of 138 fire reports — the most to date.

Siberian Wildfire Reports
Periods
June–July 2003
May–July 2004
June–August 2005
June–August 2006

Reports

101
77
30
138

Civil-Aviation Monitoring

Masami Fukuda
Institute of Low
Temperature Science,
Hokkaido University

Over the course of a year when a large
number of wildfires break out in Siberia,some 200,000 km2 — a land area equivalent
to more than half the size of Japan — canbe lost to fire. In addition to the obvious
burning of trees, there is also the burningof organic matter in and directly above thesoil. The amount of CO2 emitted by theburning of this kind of organic matter is infact five times higher than that released by
the burning trees.
To prevent the spread of wildfires, it’snecessary to contain the burning area, but
the Siberian taiga comprises a land area 20
times the size of Japan with largely undeveloped road systems. This makes it near

impossible for land-based searches to locate the source of fires.
The most effective method of containing wildfires is to use satellites for detection, but false identification does occur on
occasion and it’s possible for satellites tomiss instances of fire outbreaks. Aircraft
monitoring is extremely useful in increasing the precision of our data gathering.
From an altitude of 10,000 meters, theflight crew can survey a broad expanse of
territory with the naked eye. By gaining
the cooperation of aircraft on scheduled
flights, there’s the benefit of obtaining large
amounts of data from specific routes overan extended period of time.

Preventing Desertification in Inner Mongolia
In June 2006, the JAL Group launched the JAL Sky Eco China initiative in support of the Organization for Industrial, Spiritual and Cultural Advancement(OISCA) International, which is running a project to counter desertification in
Inner Mongolia. This project conducts research into afforestation techniques
and is looking to create a green belt to prevent desertification and the damage caused by clouds of yellow sand blown out from this area. As part of
JAL Sky Eco China efforts, JAL Mileage Bank members worldwide were able
to participate in the JAL Miles for Eco fund-raising program in June and July
2006.

49

Environmental Action Program

A Symbiotic Relationship with the Global
Environment
The JAL Group has established a Basic Environmental Policy along with its
Environmental Action Guidelines. We have also created a set of priority items
and action plans related to environmental protection while promoting
environmental activities. The company has introduced an environmentmanagement system and environmental audits. We promote environmental
activities in such ways as establishing an environmental subcommittee, project teams and task forces made up of group affiliates — all organized under
the CSR committee.

Basic Environmental Policy(adopted October 2002)

In its capacity as a public-transport organization, the JAL Group exerts an impact on the environment in such ways as consuming fossil fuels and emitting
noise. We recognize that dealing with the environment is a vital management
issue, and our aim is one of symbiosis with the global environment while striving to reduce the environmental burden in all our business activities.

Environmental Action Guidelines(adopted October 2002)

1 We will comply with environmental laws and regulations and engage in environment-protection activities.
2 We will promote the efficient use of various energy sources and resources.
3 We will promote waste reduction and proper waste disposal and recycling.
4 We will select environment-friendly products and materials, including aircraft.
5 We will enhance environmental awareness and make social contributions.

Sky Eco [2010]
In October 2002, the JAL Group implemented Sky Eco [2010], a mediumto long-term action plan aimed at reducing the direct and indirect impact ofJAL business activities on the environment and setting specific goals to bereached by the year 2010. Based on this, we created an annual priority planand engage in environmental activities.
For further information about Sky Eco [2010], please see<http://www.jal.com/en/environment>.

Fiscal 2006 Environmental Account
JAL has been conducting environmental accounting since fiscal 1999 as aquantitative evaluation tool to assess our environmental activities. Our environmental cost and environmental conservation figures in fiscal 2006 were as
follows:
Environmental Cost
Investment amount: ¥886 million Expenses: ¥13,518 million

50

Environment

Environmental Conservation
Reduction of CO2: 1.42 million tons
Reduction of nitrogen oxides (NOx): 642 tons

Activities in Fiscal 2006
Introducing New Equipment
In fiscal 2006, the company retired 13 aging
Boeing 747 and A300
aircraft and introducednine new 737-800s and
Newly introduced Boeing 737-800 aircraft
777s. In fiscal 2007, we
will continue to retire older 747s and MD-87s, introduce
new models similar to those introduced in 2006 and continue to pursue more efficient fuel consumption.

Operations Division Team –6%
In fiscal 2006, the company established Operations
Division Team –6%, which communicates directly withall flight-crew members to promote activities to fightagainst global warming.

Energy-Conservation Measures
I maintain the flight simulators that flight crew use in
their ground-based pilot training. Simulator training
does not consume as many resources as training in theaircraft themselves. Since the resulting CO2 emissions
are lower, this amounts to a major energy saving. The
simulators, though, are large machines and thus consume a substantial amount of electricity. If problems
arise during training and the simulator is active forlong periods of time, electricity consumption rises. To
minimize such problems, we ensure that our machines
are properly maintained: regular maintenance is thefirst step in conserving energy.
Conventional simulators produce substantial vertical andlateral movements, which arecontrolled by hydraulic oilpressure. To ensure that oursimulators operate in an ecofriendly fashion, we’ve introduced all-electric simulators,
which result in no oil waste.

Takashi Ito
No. 1 Maintenance Division,
JAL Simulator Engineering

Environmental Logo
In support of the Ministry of the Environment’s Team
–6% campaign to counter global warming, in fiscal 2006
we unveiled an aircraft with a logo on the fuselage saying “Let’s get together to stop global warming.”

Applying EnvironmentManagement Systems
The JAL Group is working towards acquiring
ISO 14001 accreditation, an International Organizationfor Standardization qualification related to the quality ofenvironment-management systems, mainly in field operations with a relatively high environmental impact. JAL
is also promoting the introduction of Ecostage (an evaluation and support system for environment management)
to company divisions and group companies that haverelatively light impact on the environment.
In the boxes on the right, we introduce JAL Simulator
Engineering, which attained Ecostage 1 accreditation,and the Narita Cargo Office, which acquired ISO 14001
accreditation.

Recycling Packaging Material
While transporting our customers’ cargo, we use plastic sheeting to offer protection against water and dust.
This plastic is used only once. Since we generate large
amounts of such scrap material, at one time we disposedof it as industrial waste. In line with the recent surge incrude-oil prices, however, waste plastic has acquireda market value, and as a result it has become possible
since 2006 to sell it to traders for recycling. Using highpressure compression techniques, we reduce the volume
of waste material before
handing it over to traders. If
waste is not properly sorted,
impurities can become
mixed with the plastic, making recycling difficult. So
we take great care in sortingand managing the plastic
sheeting.

Hiroshi Katori
JAL Cargo Handling,
Import Service Division

51

Environmental Conservation

Reducing Our Impact on the Environment
Air Transport and Global Warming
Aircraft engines run on fossil fuels, which generate carbon dioxide. CO2 is themost prominent of the greenhouse gases, which are believed to be the causeof global warming. The amount of CO2 emitted is approximately proportionate to the amount of fuel consumed. The JAL Group is targeting fuelconsumption cuts of 20% of the transported capacity by 2010 comparedwith 1990 levels. In line with this, we are adopting various measures toreduce fuel consumption.
The following graph shows changes in estimated emissions per available
ton-kilometer (ATK) for the commercial operation of JAL Group aircraft. Total
CO2 emissions in fiscal 2006 were 15.8 million tons, down 6.5% from theprevious fiscal year. This reduction of 1.09 million tons is the equivalent to theCO2 annually absorbed by 77.9 million Japanese cedars.

CO2 Emissions per ATK
CO2 emissions per ATK

Fuel consumption

ATK

881

25

850

20

800

15

755

750

705

700

650

10

1990

2000

01

02

03

04

05

06

2010
target5

ATK (billion ton-km)
Fuel (billion liters)

CO2 emissions (g CO2/ton-km)

9000Fuel Consumption
It is possible to reduce fuel consumption, and by extension CO2 emissions,by lightening the overall weight of the aircraft. For example, by reducing theweight of each aircraft by 1 kg it is possible to cut CO2 emissions throughout
the entire JAL Group by approximately 76 tons per year. That is the equivalentof the annual amount of CO2 absorbed by 5,400 Japanese cedars. The JAL
Group is also engaged in the following measures to reduce fuel consumption.

Lighter Tableware
In 2004, the company introduced lightweight porcelain tableware, which isapproximately 20% lighter, for the meal service in First and Business classes.
Also, by streamlining our spoons and forks we have managed to reduceweight by 2 grams per unit. We intend to increase our use of lightweight
porcelain.

52

Environment

Cargo-Container Weight
JAL cargo containers have hitherto all been made of aluminum alloy, but infiscal 2007 we started using Twintex — a new material made of glass andpolypropylene fibers — in the side panels of the containers. As a result, wehave achieved weight reductions of 26 kg per unit. We plan to steadily update our multipurpose containers on international routes with this material.

Onboard Drinking Water
The water tank in the cargo compartment used to be topped up before eachflight. However, checks revealed that most flights arrive at their destination
with a substantial amount of water still onboard. Consequently, we haveadjusted the amount of water loaded on each aircraft to more appropriate levels. As a result, we have achieved weight savings of up to 400 kg on
747-400s and 300 kg on 777s.

New lightweight containers

Fuel Measures
To work towards greater fuel efficiency, the amount of fuel onboard has to beaccurately measured. At one time, fuel was loaded onto JAL planes in units of
1,000 pounds (around 450 kg), but we decided to modify this to 100-pound
units. As a result, more precise measures of the amount of fuel required forsafe arrival at each destination have allowed us to achieve weight savings of
up to 900 pounds (approximately 400 kg) per flight.

Aircraft Center of Gravity
Passenger seating and the positioning of loaded cargo affect the aircraft’s
center of gravity. Failure to maintain passenger and cargo positions withinappropriate ranges can lead to a loss of balance and cause problems withflight operations. As a result, specialized staff are employed at each airport tocalculate the center of gravity for every flight and determine the optimum positioning of cargo in the compartment. Generally speaking, within the permissible range allowed, the further back in the aircraft the center of gravity, thelower the drag on the horizontal stabilizer and the greater the fuel efficiency.
When deciding on cargo positioning, JAL Group airport staff go to great
lengths to ensure that fuel efficiency is maximized for each flight.

New Engines on 787s

787 aircraft

The JAL Group will introduce 787s to its fleet in fiscal 2008. These aircraft use next-generation GEnx engines (developed by General Electric),
which employ composite materials to reduce weight. In addition tosuperior fuel efficiency and lower noise levels, GEnx engines also feature an environment-friendly design thatallows for major reductions in CO2 and NOx emissions.
By updating our medium-sized aircraft with 787s running GEnx engines, we expect to see CO2 emissions
reduced by 2,500 tons per aircraft per annum.

53Environment

Air and Water Pollution
Managing Chemical Usage
The JAL Group uses over 2,400 chemicals in aircraft materials, paints and hydraulic oil. We are cooperating with aircraft manufacturers and maintenancecontractors in an effort to shift to alternative, environment-friendly products.
Aircraft used by the JAL Group are repainted approximately every five and ahalf years. To remove old paint from aircraft, we have introduced stripping
agents that do not contain methylene chloride or volatile organic solvents andpermit relatively easy disposal. The company is introducing chrome-free primer and uses top-coat paint with a low volatile-solvent content. In addition, byusing a technology known as electrostatic spray painting, it has become possible to paint an aircraft using 20% to 30% less paint than before.

Anti-ice and De-icing Fluid
The amount of anti-ice and de-icing fluid (principal ingredient, propylene glycol) used to free aircraft of snow and ice in winter varies with the climate andamount of snow. Propylene glycol is also used as a food additive and thickening agent, and there are fears it may be a factor in causing an overabundanceof nutrients when released into lakes and rivers. The JAL Group is introducing
more efficient equipment that reduces the amount of fluid used in anti-ice
and de-icing operations.

Use of Anti-ice and De-icing Fluid(Unit: kl)

AirportFiscal 2005

Fiscal 2006

New Chitose

727

495

Aomori359

244

Other airports

1,363

423

Total

2,449

1,162

Other Environment-Conservation Activities
Information related to other activities, including waste materials and noise
control, is posted on our website. Please see<http://www.jal.com/en/environment>.

54

Operating Results and Traffic Statistics
Operating Revenues & Expenses
Hundred million yen

Operating, Current, Net Income/Loss
Hundred million yen

25,000800

60,000600

20,000400
15,000200

10,000040,00020,000

-200
5,000
0

Employees

-400
2004

2005
2004

Operatingrevenues
Operatingexpenses

-600

2006
2005

2004

2006

2005

0

2006

2004

2005

2006

21,299 21,994 23,019

Operating

561

268

229

20,737 22,262 22,790

Current

698

416

206

Net

301

472

163

2004

2005
2004

No. employees
at end of fiscal
year

2006
2005

2006

53,962 53,010 51,497

International Traffic Statistics
Passengers

Passenger Load Factor

1,000 passengers

15,000Cargo Load Factor
(%)

(%)

120,000

75

20,00075

100,000

70

15,00070

80,00065

10,00065

60,000

60

5,000

60

55

0

10,000

5,000

0

2004

2005
2004

No. revenue
passengers

40,000

2006
2005

2004

2006

14,743 14,188 13,467

2005
2004

2006
2005

2004

2006

2005
2004

2006
2005

55
2006

RPK

68,986 67,435 62,598

RTK

11,253 10,955 10,481

ASK

99,492 97,175 87,987

ATK

16,614 16,415 15,769

RPLF

69.3

69.4

71.1

RWLF

67.7

66.7

66.5

Domestic Traffic Statistics
Passengers

Passenger Load Factor

1,000 passengers

50,00040,000Cargo Load Factor
(%)

(%)

60,000

70

8,000

55

50,000

65

6,000

50

40,000

60

4,000

45

30,000

55

2,000

40

50

0

30,00020,00010,000
0

2004

2005
2004

No. revenue
passengers

20,000

2006
2005

2006

44,705 43,849 43,985

RPK, revenue passenger km (million passenger-km)
RTK, revenue ton km (million ton-km)

2004

2005
2004

2006

2006

35

2004

2005

2006

33,368 32,911 33,188

RTK

2,974

2,939

2,969

ASK

52,410 51,416 51,864

ATK

6,157

6,035

6,074

RWLF

48.3

48.7

48.9

63.7

64.0

ASK, available seat km (million seat-km)
ATK, available ton km (million ton-km)

2006

2005

RPK
RPLF

2005

2004

64.0

RPLF, revenue passenger-load factor (%)
RWLF, revenue weight-load factor (%)

55

Third-Party Opinion
This opinion has been compiled based on interviews with theofficers responsible for the contents published in this reportand environmental, safety and personnel issues at JAL.
This report presents the JAL promotional systems that sup-port the company’s safety, environmental and social activities
along with the views of its employees in a multifaceted, comprehensive manner. It is a report that represents the proactive
stance and practices of the company towards CSR.

Commendable Points
Flight-data analysis is fed back to flight crew in order toimprove operational safety and reduce fuel consumption(page 20). I hope to see even more active efforts, including
managing performance on an aircraft-model and/or individual basis, and recognizing and rewarding cases of excellence.
The weight of cargo containers has been reduced significantly.
As last year, detailed reports on safety incidents are included. The company is actively engaged in the analysis andprevention of human error on a daily basis, including implementing the Line Operations Safety Audit (LOSA) programand preparing case studies of unequivocal verbal communication (pages 20–23, 26–27). I would like to request thatthe company move to actively disclose examples of improve-ments based on those efforts.
The company has commenced the training of facilitators
who will play a major role in offering family assistance if andwhen accidents occur (page 24). I would like to request thatthe company develop a system so that the know-how andmechanisms applied to family assistance can also be appliedin cases of major flight cancellations or delays.
In an ongoing trend, a large number of staff are returning to work following maternity/paternity leave and leave
taken for child care. The fact that many people utilize theseopportunities means that within the company conditions
exist whereby it is easy to take leave, and this should behighly commended. The company also has a well-developed
system supporting a variety of employment needs, such as
part-time work and reemployment.

More Effort Required
The company should call on passengers to support more
actively JAL’s efforts to reduce its environmental impact. It
is vital to gain the cooperation of passengers in efforts todecrease the burden on the environment, and I would liketo request that the company present concrete proposals andthe results of follow-up efforts in its inflight magazine andon its website.

The company points out that it is active in employing staff
with disabilities (page 40). However, JAL has yet to fulfill
legally stipulated employment levels, and I would like to see
the company learn from the example of other firms thatwere pioneers in this area and move to diversify job classifications further.

Room for Improvement
I would like to see JAL take more of an environmentfriendly stance with regard to occupational safety andhealth, human rights and its procurement standards forplant, facilities and consumer goods, including inflight meals
and novelty items.
At JAL, there is a tendency to believe that quantifying performance levels and setting individual targets would lead tooverly rigid management control. But this way of thinking issomething I would like to see corrected. When questioned
about implementing individual performance targets related
to fuel consumption and specifying targets and performance
Hideto “DeDe” Kawakita, representative, International Institutefor Human, Organization andthe Earth (IIHOE)IIHOE was established in 1994 with the objective of promoting progress that is harmonious with all life on the planet. It
supports NPOs and company management that is oriented
towards social responsibility.

56

levels related to safety efforts on a work-site basis for eachfiscal year, the company responded that such measures
could not be implemented as they would lead to excessive
workforce control on the part of management. Not only
does that demonstrate an inadequate grasp of the issue, but
it means that JAL is not capable of effective management.
The company should not hesitate to undertake positive action simply because it cannot gain the full understandingof its employees: it needs to present a rational basis for its
arguments, and I would hope to see JAL take prompt corrective measures to create a company culture that actively
tackles problem-solving issues.

Hideto “DeDe” Kawakita
After graduating from university in
1987, Kawakita joined Recruit, which
he left in 1991, serving as representative of an NGO promoting international youth exchanges and as political secretary of a Japanese memberof parliament before founding IIHOE
in 1994.

Response to the Third-Party Opinion in the 2006 CSR Report
Here are some of the actions that JAL has taken in response to the third-party opinion by Hideto Kawakita in JAL’s 2006 CSR report.
Proposal 1

Proposal 4

Set safety targets at each work site.

Promote fuel efficiency and reward efforts made inthis area.

The Corporate Safety Division presents company-wide safetytargets each fiscal year and stipulates concrete priority measures for each division and group company so that thesetargets can be achieved. Progress is monitored and results arereported at the end of the fiscal year.
Proposal 2

Present concrete examples of the causes ofincidents and consider adopting an employeeevaluation system that rewards positive andpenalizes negative actions.
The company used interviewing methods developed by Boeing
to ascertain the cause of problems and errors (page 20). We
established policies for dealing with human error and arebuilding trust-based relationships between labor and management. We created an environment conducive to the active reporting of errors and established a mechanism for the accurate
and timely transmission of information (page 21).
To achieve our corporate philosophy of pursuing safety
and quality, Japan Airlines International has disclosed the job
requirements for all positions. In fiscal 2005, the company
introduced a personnel-evaluation system, which includes anassessment of the extent to which each of the above aims has
been put into practice.

A mechanism already exists for the automatic recording ofdata relating to the operation and performance of JAL flights.
This data is used to maintain safe flight operations, but wealso plan to apply it in our environment-conservation activities.
As a first step, we are analyzing data from four-engine aircraftthat shut down one engine for taxiing to the terminal after
landing, and in future we will extend the use of such kinds ofdata to other conservation measures.
Regarding recognition and awards for merit, the existing
Dream Skyward Award (page 41) includes Good Corporate
Citizen and Global Environment Activities divisions, and wewill make use of this system in appropriate areas.
Proposal 5

Call on users to cooperate in efforts to reduce theenvironmental burden.
We have included proposals to call actively upon passengers
to cooperate with reducing the burden on the environment
as one of the aims of the group’s Sky Eco [2010] action plan,
and we have defined this as a fundamental policy of the JAL
Group. We aim to bring about early implementation of these
proposals.

Proposal 32006 Report Appraisal

Rapidly attain legally stipulated levels for the employment of staff with disabilities.

In October 2006, the company
hosted an informal discussion
session on the 2006 CSR report at JAL headquarters, withHideto Kawakita, provider of
the third-party opinion, as
coordinator. Twelve JAL Group
staff from a variety of departments throughout the company had a lively discussion andreferred to CSR reports from other companies. Among suggestions put forward were inclusion of more comments fromfigures outside the company and more coverage of low-key
activities that are undertaken on a consistent basis. These
ideas are embodied in the 2007 report.

In furthering the hiring of disabled staff within the group, JAL
Sunlight has expanded its general operations to provide staff
with disabilities a broader base on which they can be actively
employed. The company is trying to create new employment
opportunities while learning from the examples of othercompanies that have made considerable efforts in this area.
In January 2006, the company obtained the cooperation of aschool for the blind in hiring visually impaired staff for a new
massage service. We also cooperated with an NPO in May
2007 in setting up operations for printing and used-uniform
disposal, employing staff with intellectual disabilities.

Participation in the UN Global Compact
The Global Compact proposed by the UN calls for businesses
around the world to implement 10 principles in the areas of human rights, labor, the environment and anticorruption. The JAL
Group has participated in the Global Compact since December
2004, and we have taken steps
to implement our responsibilities thoroughly as a corporate
citizen in our operations.

The JAL Group aims to contribute to the peace andprosperity of Japan and the world through the people, cultures and corporate activities that bring them
together and by firmly putting the 10 principles of
the Global Compact into practice.
President & CEO
Haruka Nishimatsu

57