## BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.
Application of 

## ALL NIPPON AIRWAYS CO., LTD. for an exemption pursuant to 49 U.S.C. § 40109 and an amended foreign air carrier permit pursuant to 49 U.S.C. § 40301 ) 

### ) 

### ) ) 

### ) DocketNo. OST-2012- ()O

## 3~ ) ) )


# _______________________________________)
APPLICATION OFALL NIPPON AIRWAYS CO., LTD., FORAN EXEMPTION AND AMENDED FOREIGN AIR CARRIER PERMIT

Communications with respect to this document should be sent to: Charles J. Simpson, Jr. David M. Endersbee ZUCKERT, SCOUTT & 

### RASENBERGER, L.L.P. 888 Seventeenth Street, N.W. Washington, D.C. 20006 Tel: (202) 298-8660 Fax: (202) 342-0683 cjsirnpson@zsrlaw.corn drnendersbee@zsrlaw.corn Counsel for All Nippon Airways Co., Ltd.

NOTICE: Any person may support or oppose this application by filing an answer and serving a copy ofthe answer on the applicant and on all persons listed in the attached service list on before March 23, 2012. March 2, 2012

## Application of BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

ALL NIPPON AIRWAYS CO., LTD. ) ) ) 

### ) 

## for an exemption pursuant to 49 U.S.C. § 40109 and an amended foreign air carrierpermit pursuant to 49 U.S.C. § 40301 Dated: March 2, 2012 

## ) Docket No. OST-2012- ) 

### ) )



## APPLICATION OF ALL NIPPON AIRWAYS CO., LTD., FORAN EXEMPTION AND AMENDED FOREIGN AIR CARRIER PERMIT 

## All Nippon Airways Co., Ltd. ("ANA"), pursuant to 49 U.S.C. §§ 40109, 41301, Subparts B and C ofthe Department's Rules of Practice, and the Department's 2005 Notice on Streamlining Regulatory Procedures (Docket OST-2005-22228) (the "2005 Notice"), hereby applies for an exemption and an amended foreign air carrier permit authorizing ANA to operate the following services, consistent with the provisions ofthe October 25, 2010 Memorandum of Understanding between Japan and the United States, including the Annex thereto:
• Scheduled foreign air transportation ofpersons, property, and mail (separately or in combination) from points behind Japan via Japan and intermediate points to a point or points in the United States and beyond;
• Charter foreign air transportation ofpersons, property, and mail (separately or in combination) between any point or points in Japan and any point orpoints in the

## Application ofAll Nippon Airways Co., Ltd. Page 2 United States and between any point orpoints in the United States and any point or points in any third country; and,
• Other charters pursuant to Part 212 ofthe Department's regulations. ANA respectfully requests that the Department issue a single order (1) granting ANA's exemption application for a two-yearperiod or until after the requested permit amendment becomes effective, whichever occurs earlier, and (2) approving the corresponding amended foreign air carrier permit under the procedures set forth in the Department's 2005 Notice. In support ofthis application, ANA states as follows: 1. On October 25, 2010, Japan and the United States signed the historic Memorandum ofUnderstanding ("the 2010 MOU") that ushered in a new era ofOpen Skies between the two nations, creating important new service opportunities for carriers ofboth sides. The provisions ofthe 20I0 MOU were incorporated into an agreement by exchange of diplomatic notes on November 13,2010. The 2010 MOU and the Annex thereto define the broad traffic rights available to designated airlines ofJapan and the United States. 2. ANA currentlyholds a foreign air carrier permit, most recently amended in 2007, authorizing it to engage in scheduled foreign air transportation of(a) persons, property and mail (combination service only) between any point or points behind Japan, via any point orpoints in Japan, and any intermediate point orpoints, and any point or points in the United States, and any point orpoints beyond; and (b) property and mail (all-cargo) between any point or points in

## Application ofAll Nippon Airways Co., Ltd. Page 3 Japan and Chicago, Los Angeles, San Francisco and New York, as well as to engage in charter trips in foreign air transportation. 1 

## Order 2007-4-29, Docket OST-2006-26649. 3. ANA now seeks the full complement ofrights available to airlines ofJapan under the 2010 MOU and the Annex thereto, as set forth in paragraph 9 below. The expanded authority sought here will further ANA's ability to rapidly adjust to market needs and to provide shippers and consumers the greatest range ofair transportation services possible. ANA has a demonstrated interest in expanding its services to the United States. On December 21, 2011, ANA, which is the launch customer for the Boeing 787 Dreamliner, announced that it would commence 787 combination service between Tokyo (Narita) and Seattle and San Jose during the fiscal year beginning April1, 2012? 4. ANA is a corporation organized and existing under the laws ofJapan (incorporated pursuant to the provisions ofBook 11, Chapter IV ofthe Commercial Code ofJapan) and is a citizen ofJapan. Its full name and headquarters address is All Nippon Airways Co., Ltd. 1-5-2, Higashi-Shimbashi, Minato-ku Tokyo 105-7133, Japan. 5. ANA is a publiclytraded company, and no single entity owns more than five percent (5%) ofANA's stock. ANA is substantially owned and effectively controlled by nationals ofJapan. Per 14 CFR 

## §211.21(d), ownership and control ofANA are substantially unchanged. 6. The competent air transport authority having regulatoryjurisdiction over ANA is

1 

### Pursuant to Order 87-11-10, ANA is required to obtain statements ofauthorization pursuant to 14 CFR Part 212 for all Third and Fourth Freedom charters between Japan and the U.S. ANA respectfully submits that this broad requirement is inconsistent with the new Open Skies regime and requests that the requirement be terminated, consistent with the applicable provisions ofthe Annex to the 2010 MOU. 2 

### These new services are encompassed by ANA's existing foreign air carrier permit.

## Application ofAll Nippon Airways Co., Ltd. Page 4 the Ministry ofLand, Infrastructure and Transport and Tourism (Civil Aviation Bureau) ("MLIT"). MLIT is located at 2-1-3 Kasumigaseki, Chiyoda-ku, Tokyo I00-8918, Japan. 7. ANA's Air Operator Certificate issued by the MLIT on August 31, 2011, and authorizing ANA to engage in international air transportation services is attached as Exhibit ANA-l. ANA's Air Operator Certificate fully authorizes the services described herein and has no expiration date. 8. As required by 14 CFR 

## § 211.21(c), financial summaries for the two most recent available fiscal years are attached as Exhibit ANA-2. 3 

## 9. The authority requested herein is consistent with, and is provided for, in the 2010 MOU. Section I ofthe Annex to the 2010 MOU provides that airlines designated by the Government ofJapan are entitled to provide scheduled international air transportation (i.e., transportation ofpassengers, cargo and mail, separately orin combination):4 

## From a point or points behind Japan via Japan and intermediate points to a point or points in the United States and beyond. Similarly, Section 2 ofthe Annex provides, inter alia, 

## that airlines ofboth countries have the right to provide charter international air transportation: (a) between any point orpoints in its homeland and any point orpoints in the territory of the other Party; and (b) between any point orpoints in the territory ofthe otherparty and any point in a third country or countries, provided that such service constitutes part ofa continuous operation, with or without a change ofaircraft, that includes service to or from the homeland for the purpose ofcarrying local traffic to or from the homeland.5

3 

### Because ANA is not at this time proposing any new services pursuant the requested new authority, ANA is not submitting estimated traffic and financial results or other information for proposed services, as contemplated by 14 CFR 

### § 211.2l(b). 4 

### In addition, Part 

### VII ofthe 2010 MOU permits airlines operating services under the MOU to engage in cooperative marketing arrangements and intermodal cargo services. 5 

### See footnote I , 

### supra.

## Application ofAll Nippon Airways Co., Ltd. Page 5 10. ANA does not receive, nor does it expect to receive, any financial assistance from the Government ofJapan. 11. ANA has not been involved in any safety or tariffviolations, or been involved in any fatal accidents, during the five years preceding this application. 12. ANA's aircraft maintenance program continues to comply with ICAO Pilots and Airmen Annexes 1, 6 (Part 1) and 7. 13. Grant ofthe authority sought by ANA will not constitute a major regulatory action under the Energy Policy and Conservation Act of 1975, as defined in Part 313 ofthe Department's Regulations. 14. The public interest will be served by the grant ofthis authority to ANA. In announcing the U.S.- Japan agreement, Secretary LaHood noted that "American and Japanese consumers, airlines and economies will enjoy the benefits ofcompetitive pricing and more convenient service" brought by open skies.6 

## Japan has long been a major ally and trade and transportation partner ofthe U.S. Finally, as noted above, this authority will provide ANA with the maximum possible flexibility to respond to market conditions and needs with a minimum of regulatory delay. 15. ANA remains fit, willing and able to perform the foreign air transportation services described in this application and will conform with the Department's statutory provisions, rules, regulations and otherrequirements.

6 

### "U.S. Transportation Secretary LaHood Announces U.S.-Japan Agreement on Open Skies," Dec. II, 2009, available at http://www.dot.gov/affairs/2009/dot 19609.htm

## Application ofAll Nippon Airways Co., Ltd. Page 6

WHEREFORE, for the foregoing reasons, All Nippon Airways Co., Ltd., respectfully requests that the Department grant the requested exemption and amended foreign air carrier permit as described more fully herein. ANA also requests such further, different and additional reliefas the Department may deem to be appropriate.

March 2, 2012 Respectfully submitted,

Charles J. Sim son, Jr. David 

## M. Endersbee ZUCKERT, SCOUTT & 

## RASENBERGER, L.L.P. 888 Seventeenth Street, N.W. Washington, D.C. 20006 Tel: (202) 298-8660 Fax: (202) 342-0683 cjsimpson@zsrlaw.com dmendersbee@zsrlaw.com Counsel for All Nippon Airways Co., Ltd.

## Application ofAll Nippon Airways Co., Ltd. Page 7 Index to Exhibits

Exhibit ANA-l Air Operator Certificate Exhibit ANA-2 Financial Summaries

## Exhibit ANA-l Air Operator Certificate**W~~~ B-~**  

### $**~**

## fi~~~1rs·Enr~---------**iEE~i~~ 91** 

## ity ________· ________

## ~#~Wkrtt~~Q.f-**_o_nJ~Qt** KOKUKUJI 880 Ministry ofLand, Infrastructure, Contact details, 

### at which Transport and Tourism operational management can 

### be 

### contactedwithoutonduedelay, are listed 

### in
.attachment to 

### thls document. 

# m Q)

### n; 

# Ju±**~:&.** 

# m (J) Expiry Date OperatorName,Address,Telephone, Type ofaircraft authorized for use

## -::.Oi¥D"'iifmti:t~-·~t¥**~a~~fa1f*~sf:ff**

# ___________***.:..::1'-s::V~747-4oo-jf:VJfNr ~f.iE(J)h:tJZl±fl},:c1ti6~** **~~Z:n.fifi** 

### 1

### Tl§ 5:fi:2% #-.{**"!/~-:;t.1n** 

### *?llli!l t.(**~no~** 

### -zt"(J)/'11'1, 

## :flW1.!:: flttwiS.m:% : o3-673S-looo 

# *--1**"!/~it**767**>U~J!rl** 

## T -5o**7r:J1~~-** 

## : 03-6735-1

## oos #--1 ;:..r**~it**737***?11~** 

### This certificate is remain in ALL NIPPON AIRWAYS**#-.{;:..r~it787*:7Uli!l** 

### effect until superseded by 

### a CO.,LTD .:r.:rr>Ait;A320

### -*?11!1'1 new Air Operator Certificate. 

### 5-2, Higashishinbasbi 1-chome, Boeing 747-400 series Mlnato-ku,Tokyo,JAPAN Boeing 777 

### series



## lliEOOToo TEL;+Sl-3-6735-1000 Boeing 767 series FAX;+81-3-6735-1005 Boeing 737 series Boeing 787 series Airbus A320 

### series
This certificate certifies that ALL NIPPON AIRWAYS CO.,LTD. has met the requirement of the Civil Aeronautics Law of JAPAN for the issuance of this cet1ificate and is hereby authorized to conduct commercial air transportation operations 

### in accordance 

### with said Law and he conditions and 

### li 'ta 

### ions rescribed he e.

## iiMLtrtfl.l-t**~**

## '8JIW0>31Mst;r::-::> I.'

# -c Operational 

# Points of Contact**~1±:8** 

## :**~Ef*~•*-*:it~-1±** 

### Operator Name : ALLNIPPONAJRWAYS CO.,LTD.**:iifJta-~J]!-9~8Jl~O))Ij!$\;** 

## Operational Points of Gontact**~s*~~~~~ti****~~v-Ya/Um~** 

## fim:**:~nit-tJt:tEal&jj::JfE~il3-** 

### 3-2**-~-~:03-5757-6300 77~?A-~:03-5767-5656**  

# ALL NIPPON AIRWAYS GO.,LTD. Operation 

# & Airport Services Address : 3-3-2, Hanedakuko, Ota-ku, Tokyo, JAPAN 

## TEL: +81-3-5757-5300 FAX: +81-3-5757-5656

## Exhibit ANA-2 Financial Summaries

# Consolidated Balance Sheets All Nippon Airways Co., ltd. and its consolidated subsidiaries As of March 31, 2010 and 2009

ASSETS



### ----- Current assets:

Cash on hand and in banks
................................................ Marketable securities (Note 4)
........................................ Accounts receivable, less allowance for doubtful accounts

(¥746 million in 2010 and ¥471 million in 2009)
........... Accounts receivable from and advances to

non-consolidated subsidiaries and affiliates
................. Inventories
.................................................................................... Deferred income taxes- current (Note 8)
....................................... Prepaid expenses and other current assets...................................... Total current assets ..........................................................
Investments and long-term receivables:

Investments in securities (Note 4)
................................................... Investments in and advances to non-consolidated Yen (Millions) 2010 2009 ¥ 13,246 ¥ 59,668 180,576 84,483 98,786 87,403

1,285 1,764 56,910 57,119 24,715 73,296 45,998 82,940



## ------------- 421,516 446,673

38,346 40,619 subsidiaries and affiliates (Note 5)
...... ... .. .... ......... .... .. .... .. .... ... .. 14,395 14,972 Lease and guaranty deposits.......................................................... 12,451 12,617 Housing loans to employees........................................................... 514 559 Other long-term receivables........................................................... 23,565 20,650



## --------------- Total investments and long-term receivables................ 89,271 89,417



## ----------------- Property and equipment (Notes 6 and 9):

Flight equipment
.......................................................................... 1,221,837 1,189,326 Ground property and equipment.
.................................................. 465,322 450,817 1,687,159 1,640,143 Less accumulated depreciation
...................................................... (841,552) (820,826) 845,607 819,317 Leased assets ................................................................................. 43,796 54,653 Advance payments on aircraft purchase contracts .......................... 250,212 184,065 Construction in progress ................................................................ 12,739 22,233 Net property and equipment
......................................... 1,152,354 1,080,268 Deferred income taxes- non-current (Note 8)
............................... 124,558 81,589 Other assets ..................................................................................... 71,386 63,118 Total assets ........................................................... ¥1,859,085 ¥1,761,065 See accompanying notes to consol'ldated fmancial statements.

108 All Nippon Airways Co., ltd. -----·--

$ US. dollars

(Thousands)

(Note3) 2010

142,368 1,940,842 1,061,758 13,811 611,672 265,638 494,389 4,530,481

412,145 154,718 133,824

5,524 253,278 959,490

13,132,383 5,001,311 18,133,695 (9,045,055) 9,088,639

470,722 2,689,294

136,919 12,385,576

1,338,757

767,261 $19,981,567---------- LIABILITIES AND NET ASSETS

--------------------- Current liabilities:

Short-term loans, including current portion of long-term debt,

and finance lease obligations (Note 6)
................................... Accounts and notes payable - trade
.................................... Accounts payable to non-consolidated subsidiaries and affiliates
... Advance ticket sales
..................................................................... Accrued expenses ......................................................................... Accrued income taxes ................................................................... Other current liabilities
................................................................. Total current liabilities
.................................................. Long-term liabilities:

Long-term debt, less current portion,

and finance lease obligations (Note 6)
........................................ Accrued employees' retirement benefits (Note 7)
.......................... Deferred income taxes - non-current (Note 8)
................................ Other long-term liabilities
.............................................................. Totallong-term liabilities
............................................... Commitments and contingent liabilities (Note 11)
Net assets (Notes 8 and 1 0): Shareholders' equity
...................................................................

Common stock:

Authorized- 3,900,000,000 shares Issued- 2,524,959,257 shares at March 31, 2010 and 1,949,959,257 shares at March 31, 2009 ........ Capital surplus
.......................................................................... Retained earnings
..................................................................... Less treasury common stock, at cost (18,528,413 shares at

March 31,2010 and 16,778,017 shares at March 31, 2009)., Valuation, translation adjustments and others
.........................

Net unrealized holding gain on securities
.................................. Deferred loss on hedging instruments
........................................ Foreign currency translation adjustments
................................... Minority interests
........................................................................ Total net assets ................................................................ Total liabilities and net assets ........................................**---------~------------** -------- US. dollars (Thousands) Yen (Millions) (Note 3) 

### _____ "

### ______________ ------------ 2010 2009 2010

-------- ¥ 180,775 ¥ 169,462 $ 1,942,981 155,929 158,259 1,675,935 984 772 10,576 53,033 45,104 570,002 27,703 28,339 297,753

2,670 1,349 28,697 51,519 99,835 553,729 472,613 503,120 5,079,675
760,916 727,774 8,178,374 119,425 116,917 1,283,587 406 70 4,363 25,636 87,387 275,537**------~~----~~---** 906,383 932,148 9,741,863



## -------------

485,510 403,157 5,218,293
231,381 160,001 2,486,898 196,635 125,720 2,113,445 64,510 123,830 693,357 (7,016) (6,394) (75,408) (11,958) (81,274) (128,525)

1,516 1,391 16,294 (13,212) (82,597) (142,003) (262) (68) (2,815) 6,537 3,914 70,260 480,089 325,797 5,160,027 ¥1,859,085 ¥1,761,065 $19,981,567

Annual Report 2010 109

# Consolidated Statements of Income All Nippon Airways Co., ltd. and its consolrdated subsidiaries Years ended March 31, 2010, 2009 and 2008**-~--- ---~~----~----~~-~-------------~~--------** **~~------** 

### u.s. dollars (Thousands) Yen (Mrllions) (Note 3) Operating revenues:

Passenger
.......................................................... Cargo
..................... Incidental and other
............................................ Operating expenses: 2010 ¥ 845,100 87,579 295,674 1,228,353 2009 ¥ 990,466 102,166 299,949 1,392,581 2008 ¥1,051,091 102,758 333,978 1,487,827 Aircraft and flight operations
......... ................................ 377,954 433,316 394,422 Aircraft maintenance
...................................................... 110,433 114,796 112,528 In-flight services
.............................................................. 64,935 69,696 70,601 Flight control and ground handling
................................. 252,057 268,020 282,125 Reservations, sales and advertising
.............. ............... ..... 172,390 204,762 232,696 General and administrative.............................................. 46,994 42,575 42,743 Depreciation and amortization
.. ...................................... 113,806 112,881 116,787 Other costs .....................................................................**_:..:.144~,0.=.::3::...:1**__ .:c13::.:::8'"",9::...:4c::c6__**1:...:5_._1!.:::,5'-=-3~6-** Operating (loss) income
................................................... Non-operating income (expenses):

Interest and dividend income
.......................................... Gain on sale of property and equipment
......................... Interest expenses ............................................................ Loss on sale or disposal of property and equipment
......... Impairment loss (Note 16) ............................................... Valuation loss on investments in securities
........................ Valuation loss on other investments
................................. Equity in (loss) income of affiliates
................................... Gain on sale of investments in securities
......................... Gain on return of substituted portion of welfare pension fund
.. . Amortization of nettransitional retirement benefit obligation
.. . Special retirement benefit expenses ................................. Gain on insurance adjustment...
....................................... Expenses related to antitrust proceedings
......................... 1,282,600 1,384,992 1,403,438 (54,247) 7,589 84,389

2,672 1,115 (18, 160) (14, 182)

{1,253)

(644)

(13) (204)

18 1,723 (6,423) (4,467) 2,868 15,020 (14,832)

(8,213) (3,893) (25) 271 324 (6,534) 4,610 5,184 (15,049)

(8,974) (14,111)

(3,825) (9) 385 876 (6,634) (1,217) Refurbishment expense for return of lease aircraft............ (4,086) (856) (1,899) (660) 2,869 (2, 105)

(303) Gain on sale of hotel business assets................................. 132,992 Loss on disposal of the parts for retired aircraft property

and equipment............................................................ (11, 198) Provision for loss on antitrust proceedings (Note 2 @....... (648) (16, 198) Other, net .......................................................................**-~1:!..,8::..:7-=5~**_ __:',3,c.:.1:..:.79=-----"'(3::..:1:.!.:,9'-'1_._1)c._ (41 ,346) (12,034) 30,835 (Loss) income before income taxes and minority interests
...... Income taxes (Note 8): (95,593) (4,445) 115,224

Current
........................................................................... 2,796 1,334 84,886 Deferred
......... ..... .... ......... ........ ................. ...... . ... . ... . ..... . --'(4-'-'0'-", 8::.:2_._1!.....) _**___,(~1** ,c=-2'-'77:..!...)**-~(3::....4~, 6:=9~2)c._**  (38,025) 57 50,194 (Loss) income before minority interests
.......................... (57,568) (4,502) 65,030 Minority interests
.............................................................. (181) (242) 887 Net (loss) income
............................................................... ¥ (57,387) ¥ (4,260) 

### ¥ 64,143
Yen Net (loss) income per share (Note 2 (p))
............................... ¥ (24.67) ¥ (2.19) ¥ 32.93 See accompanying notes to consolidated financial statements.
110 All Nippon Airways Co., Ltd. 2010 

### $ 9,083,190 941,304 3,177,923 13,202,418 4,062,274 1,186,941

697,925 2,709,125 1,852,858

505,094 1,223,194 1,548,054 13,785,468

(583,050)

28,718 11,984 (195,184) (152,429)

(13,467)

(6,921)

(139) (2, 192)

193 18,518 (69,034) (48,011)

(9,200) (20,410)

(6,964) 20,152 (444,389) (1 ,027,439) 30,051 (438,746) (408,695) (618,744)

(1,945)

## -Tl6f6J99fU.S. dollars (Note 3) 

### $ (0.26)

# Consolidated Statements of Changes 

# . Net Assets Ill All Nippon Airways Co., Ltd. and its consolidated subsidiaries Years ended March 31,2008,2009 and 2010**-~~---~-------~----------- -------~~---------------**  Yen (M!Itkms}

________ - ______i_h?rehok!en.' egui!'L.___**~------ ~-~~.Lf01** **transla~~~~ents** and**o!bt'_IL~** Net lOtal unreaftzed Deferred Foreign valuation, Common Caprtal Retamed LI'Ss treasury lOtal holding ga1n (loss) on tran-:.latiorl

stock surplus eammgs common s.harehol®' gain on hedgmg adjustments Minonty lOtal (Note 10) (No!J' 10) (Note to) stock, at cost equ1ty 5€CUnties mstruments adjustments andothr:-rs interests net assets**·-------~-** -------------------"-- Balance at March 31, 2007.... ¥160,001 ¥125,739 ¥79,530 ¥ (725) ¥364,545 ¥10,885 ¥ 23,155 ¥(362) ¥ 33,678 ¥7,689 ¥405,912

Cash dividends paid
.. (5,844) (5,844) (5,844) Net income. 64,143 64,143 64,143 Decrease resulting from purchase of treasury stock
.. (307) (307) (307) Disposition of treasury stock
... 11 109 120 120 Net changes of items other than shareholder.;' equity during the period (3,027) (886) 550 (3,363) (4,715) (8,078) Total changes during the period
.. 11 58,299 (198) 58,112 (3,027) (886) 550 (3,363) (4,715) 50,034 Balance at March 31, 2008.. 160,001 125,750 137,829 (923) 422,657 7,858 22,269 188 30,315 2,974 455,946

Cash dividends paid
.... (9,739) (9,739) (9,739) Net loss
...... ....................... (4,260) (4,260) (4,260) Decrease resulting from purchase of treasury stock
.... (6, 121) (6, 121) (6, 121) Disposition of treasury stock..
.. (30) 650 620 620 Net changes of items other than shareholders' equity during the period (6,467) (104,866) (256) (111,589) 940 (110,649) Total changes during the period
.. (30) (13,999) (5,471) (19,500) (6,467) (104,866) (256) (111,589) 940 (130,149) Balance at March 31, 2009.... 160,001 125,720 123,83() (6,394) 403,157 1,391 (82,597) (68) (81,274) 3,914 325,797

Issuance of stock by public offering and allocation to third party ..... 71,380 71,380 142,760 142,760 Cash dividends paid
.. (1,933) (1,933) (1,933) Net loss
...... (57,387) (57,387) (57,387) Decrease resulting from purchase of treasury stock
... (2,463) (2,463) (2,463) Disposition of treasury stock
... (465) 1,841 1,376 1,376 Net changes of items other than shareholders' equity during the period 125 69,385 (194) 69,316 2,623 71,939 Total changes during the period 71,380 70,915 (59,320) (622) 82,353 125 69,385 (194) 69,316 2,623 154,292 Balance at March 31, 2010.......... ¥231,381 ¥196,635 ¥64,510 ¥(7,016) ¥485,510 ¥ 1,516 ¥ (13,212) ¥(262) ¥ (11,958) ¥6,537 ¥480,089

unrealized Deferred foreign valuatKm, Common Capital Retaint'd less treasury lOtal holding gain(m)on currency translation

stock surplus earnings common shareholders' gam on hedgng translation adjustments Minority lOtal (Note10) (Note 10) (Note 10) stock, at cost equity**~curities** instruments adjustments and others interests netassets Balance at March 31, 2009.. "" '""' $1,719,701 $1,351,246 $1,330,932 $(68,723) $4,333,157 

## s 14,950 $(887,757) $(730) $(873,538) $42,067 $3,501,687 Issuance of stock by public offering and allocation to third party........... 767,196 767,196 1,534,393 1,534,393 Cash dividends paid
.... (20,776) (20,776) (20,776) Net loss
....... (616,799) (616,799) (616,799) Decrease resulting from purchase oftreasury stock (26,472) (26,472) (26,472) Disposition of treasury stock. (4,997) 19,787 14,789 14,789 Net changes of**~ems** other than shareholders' equity during the period
................ 1,343 745,754 (2,085) 745,012 28,192 773,205 Total changes during the period
.......... 767,1% 762,199 (637,575) (6,685) 885,135 1,343 745,754 (2,085) 745,012 28,192 1,658,340 Balance at March 31, 2010... ""' " " $2,486,898 $2,113,445 $ 693,357 $(75,408) $5,218,293 $16,294 ${142,003) $(2,815) $(128,525) $70,260 $5,160,027 See accompanying notes to consolidated financial statements.

Annual Report 2010 111

# Consolidated Balance Sheets All Nippon Airways Co., ltd. and its consolidated subsidiaries As of March 31, 2011 and 2010



### ASSETS Current assets:

Cash on hand and in banks
........................................................... Marketable securities (Note 4)
........................................................ Accounts receivable, less allowance for doubtful accounts

(¥1,242 million in 2011 and ¥746 million in 201 0)
..................... Accounts receivable from and advances to

non-consolidated subsidiaries and affiliates
................................ Inventories
..................................................................................... Deferred income taxes- current (Note 9)
....................................... Prepaid expenses and other current assets ..................................... Total current assets .........................................................
Investments and long-term receivables:

Investments in securities (Note 4)
................................................... Investments in and advances to non-consolidated

subsidiaries and affiliates (Note 5)
............................................. Lease and guaranty deposits
.......................................................... other long-term receivables
........................................................... Total investments and long-term receivables
................ Property and equipment (Notes 6 and 11):

Flight equipment.
........................................................................... Ground property and equipment
................................................... Less accumulated depreciation
....................................................... Leased assets ................................................................................. Advance payments on aircraft purchase contracts .......................... Construction in progress ................................................................ Net property and equipment
......................................... Deferred income taxes- non-current (Note 9)
............................... Other assets ..................................................................................... Total assets....................................................................... See accompanying notes to consolidated financial statements.

112 All Nippon Airways Co., Ltd. U.S. dollars (Thousands) Yen (Millions) (Note 3)

--------- ·-·--------· 2011 2010 2011 

### ¥ 36,956 ¥ 13,246 

### $ 444,449 173,874 180,576 2,091,088 95,855 98,786 1' 152,796

2,959 1,285 35,586 55,459 56,910 666,975 38,618 24,715 464,437 68,466 45,998 823,403 472,187 421,516 5,678,737

31,028 38,346 373,156 23,494 14,395 282,549 12,345 12,451 148,466 31,732 24,079 381,623**~--------------------** 98,599 89,271 1' 185,796



## -----------------------
1,344,806 1,221,837 16,173,253

486,578 465,322 5,851,809 1,831,384 1,687,159 22,025,063 (904,815) (841 ,552) (10,881,719) 926,569 845,607 11,143,343

35,904 43,796 431,797 219,974 250,212 2,645,508

6,753 12,739 81,214 1,189,200 1 '152,354 14,301,864 93,116 124,558 1,119,855 74,919 71,386 901,010 ¥1,928,021 ¥1,859,085 

### $23, 187,263U.S. dollars (Thousands) Yen (Millions) (Note 3)

- 

### ------ LIABILITIES AND NET ASSETS 2011 2010 2011

---------**---~-~--** Current liabilities:

Short-term loans, including current portion of long-term debt,

and finance lease obligations (Note 6)
....................................... ¥ 146,395 ¥ 180,775 $ 1,760,613 Accounts and notes payable- trade
.............................................. 160,630 155,929 1,931,809 Accounts payable to non-consolidated subsidiaries and affiliates
... 1,561 984 18,773 Advance ticket sales
...................................................................... 50,832 53,033 611,328 Accrued expenses ......................................................................... 46,383 27,703 557,823 Accrued income taxes ................................................................... 4,787 2,670 57,570 Asset retirement obligations (Note 8)
............................................. 1,614 19,410 Other current liabilities
.................................................................. 35,389 51,519 425,604



## -------------- Total current liabilities
................................................... 447,591 472,613 5,382,934 Long-term liabilities:

Long-term debt, less current portion,

and finance lease obligations (Note 6)
........................................ 792,424 760,916 9,530,054 Accrued employees' retirement benefits (Note 7)
........................... 123,400 119,425 1,484,064 Deferred income taxes- non-current (Note 9)
................................ 1,951 406 23,463 Asset retirement obligations (Note 8)
............................................. 977 11,749 Other long-term liabilities
.............................................................. 35,324 25,636 424,822 Totallong-term liabilities
...............................................**-------------~---** 906,383 954,076 11,474,155



## --------------- Commitments and contingent liabilities (Note 13) Net assets (Notes 9 and 12):

Shareholders' equity
................................................................... 516,803 485,510 6,215,309

Common stock:

Authorized- 5,100,000,000 shares Issued- 2,524,959,257 shares at March 31, 2011 and 2010 .. 231,381 231,381 2,782,693 Capital surplus
.......................................................................... 196,330 196,635 2,361,154 Retained earnings
..................................................................... 94,892 64,510 1,141,214 

### ., Less treasury common stock, at cost (15,903,528 shares at :;· 

### '" March 31, 2011 and 18,528,413 shares at March 31, 2010)
.. (5,800) (7,016) (69,753) :> 

### ,., o;· Accumulated other comprehensive income
.............................. Net unrealized holding (loss) gain on securities
.......................... 3,451 (11,958) 41,503 

### "' (810) 1,516 (9,741) 

# a. 0 Deferred gain (loss) on hedging instruments
............................... 5,010 (13,212) ::> 60,252 Foreign currency translation adjustments
................................... (749) (262) (9,007) Minority interests
........................................................................ 6,100 6,537 73,361 Total net assets ................................................................ 526,354 480,089 6,330,174 Total liabilities and net assets ........................................ ¥1,928,021 ¥1,859,085 $23,187,263

Annual Report 2011 113

# Consolidated Statements of Income and Comprehensive Income All Nippon Airways Co., Ltd. and its consolidated subsidiaries Years ended March 31, 2011, 2010 and 2009 Consolidated Statements of Income Yen (Millions) US. dollars (Thousands) (Note3)**--~----** ___________ 2_0_1_1______ 2_0_1_0________**2_0Q~---** ____ 2_0_1

## ! __ _ Operating revenues:

Passenger
....... Cargo
....... Incidental and other
.. Operating expenses:

Aircraft and flight operations
... Aircraft maintenance
................... In-flight services
............................. Flight control and ground handling
.......... Reservations, sales and advertising
. General and administrative
.. Depreciation and amortization
.. Others......
........................ Operating income (loss)
........ Non-operating expenses:

Interest and dividend income
............. Gain on sale of property and equipment
........ Interest expenses ..... ........................ ............................ Loss on sale or disposal of property and equipment
................... Impairment loss (Note 18) ...................................................... Valuation loss on investments in securities
....................... Valuation loss on other investments
.................. Equity in income (loss) ofaffiliates
.... ................. Gain on sale of investments in securities
.............. Reversal of provision for loss on antitrust proceedings
...... Gain on return of substituted portion ofwelfare pension fund Amortization of net transitional retirement benefit obligation
.... Special retirement benefit expenses ...................... Gain on insurance adjustment...
................................................ Loss on antitrust settlement
................................... loss on adjustmentforchanges ofaccounting standard forasset retirement obligations
... Expenses related to antitrust proceedings
....................................... Refurbishment expense for return of lease aircraft
........................ Provision for loss on antitrust proceedings
....... Others
...................................................................................... Income (loss) before income taxes and minority interests
............... Income taxes (Note 9):

Current
.................................................................................. Deferred
......................................................... Net income {Joss) before minority interests
. Minority interests
................................. Net income (loss)
................................................................... Net income (loss) per share (Note 2 (p})
............................. See accompanying notes to consolidated financial statements. Consolidated Statement of Comprehensive Income

Income before minority interests
..................... Other comprehensive income:

Net unrealized holding loss on securities
............................ ¥ 933,248 118,470 305,935**-D57:653~** 389,091 103,001 68,367 260,561 160,225 44,578 118,440 145,582 1,289,845

67,808 2,597

414 (19,314) (12, 161)

(315) (3,536)

684 16,729 38 (6,425)

(192) (6,835) (2, 130)

(693) (2,846) 1,235 (32,750) 35,058 4,657 7,377 12,034 23,024

(281) ¥ 23,305
¥ 9.29

Deferred gain on hedging instruments
................................................................................ Foreign currency translation adjustments
...................................................................... ¥ 845,100 87,579 295,674 1,228,353

377,954 110,433 64,935 252,057 172,390 46,994 113,806 144,031 1,282,600

(54,247)

2,672 1,115 (18,160) (14,182) (1,253)

(644) (13) (204)

18 1,723 (6,423) (4,467)

(856) (1,899)

(648) 1,875 (41,346) (95,593}

2,796 (40,821) (38,025} (57,568)

(181) ¥ (57,387} Yen ¥ (24.67}

Share of other comprehensive income ofassociates accounted for by the equity-method
......................... Total other comprehensive income (Note 1 0)
.................................................................. Comprehensive income
..................................................................................................................................... Total comprehensive income attributable to:

Owners ofAll Nippon Airways Co., Ltd
................................................. Minority interests........................................................
...................... See accompanying notes to consolidated financial statements. 114 All NipponAirways Co., Ltd. ¥ 990,466 102,166 299,949 1,392,581

433,316 114,796 69,696 268,020 204,762 42,575 112,881 138,946 1,384,992 7,589 2,868 15,020 (14,832} (8,213) (3,893)

(25} 271 324 (6,534)

(660) 2,869 (2, 105)

(303) 3,179 (12,034) (4,445) 1,334 (1,277) 57 (4,502)

(242) ¥ (4,260)
¥ (2.19)

Yen (Millions) ¥23,024

(2,350) 18,222

(492)

(27) ¥15,353 ¥38,377 ¥38,662 ¥ (285) $11,223,668 1,424,774 3,679,314

. 16,327,757

4,679,386 1,238,737

822,212 3,133,625 1,926,939

536,115 1,424,413 1,750,835 15,512,266

815,490 31,232 4,978 (232,279) (146,253)

(3,788) (42,525)

8,226 201,190 457 (77,269) (2,309) (82,200) (25,616)

(8,334) (34,227) 14,852 (393,866) 421,623 56,007 88,719 144,726 276,897

(3,379) $ 280,276 

### u.s. dollars

(Note 3) $ 0.11

U.S. dollars (Thousands) (Note3) 2011 $276,897

(28,262) 219,146

(5,917)

(324) $184,642 $461,539 $464,966 $ (3,427)

# Consolidated Statements of Changes in Net Assets All Nippon Airways Co., Ltd. and its consolidated subsidiaries Years ended March 31, 2009, 2010 and 2011

-----------·---------------------- ..__ .._.......-- ....---·------i'eiiTMinions)
...--..........---....----·**·--------~** Shareholders' i?QU1..!t.___
____**~.** Accumulated other**com~rehenSiV"e-income** Net Total unrealized Deferred Foreign accumulated Common Capital Retained LI?Ss treasury Total holding gain (loss)on currency other

stock surplus earnings common shareholders' ga1n on hedging translation comprehensive Minorrty Total (Note 12) (Note 12) (Note 12) stock, atcost equity securities instruments adjustments rncome interests net assets Balance at March 31, 2008.. ¥160,001 ¥125.750 ¥137,829 ¥ (923) ¥422,657 ¥7,858 ¥ 22,269 ¥188 ¥ 30,315 ¥2,974 ¥455,946

Cash dividends paid
.. (9,739) (9.739) (9.739) Net loss
......... (4,260) (4,260) (4,260) Decrease resulting from purchase of treasury stock
... (6, 121) (6, 121) (6,121) Disposition of treasury stock
... (30) 650 620 620 Net changes of items other than shareholders' equity during the period
..... (6,467) (104,866) (256) (111,589) 940 (110,649) Total changes during the period
... (30) (13,999) (5,471) (19,500) (6,467) (104,866) (256) (111,589) 940 (130,149) Balance at March 31, 2009.. 160,001 125,720 123,830 (6,394) 403,157 1,391 (82,597) (68) (81,274) 3,914 325.797

Issuance ofstock by public offering and allocation to third party......... 71,380 71,380 142,760 142,760 Cash dividends paid
. (1,933) (1,933) (1,933) Net loss
.. (57,387) (57,387) (57,387) Decrease resulting from purchase of treasury stock
.... (2,463) (2.463) (2.463) Disposition of treasury stock
.. (465) 1,841 1,376 1,376 Net changes of items other than shareholders' equity during the period. 125 69,385 (194) 69,316 2,623 71,939 Total changes during the period
......... 71,380 70,915 (59,320) (622) 82,353 125 69,385 (194) 69,316 2,623 154,292 Balance at March 31, 2010............... 231,381 196,635 64,510 (7,016) 485,510 1,516 (13,212) (262) (11,958) 6,537 480,089

Net income
...... 23,305 23,305 23,305 Decrease resulting from purchase of treasury stock
.... (56) (56) (56) Disposition of treasury stock
..... (305) 1,373 1,068 1,068 Changes in scope of consolidation and application ofthe equity method
.... 7,077 (101) 6,976 52 52 7,028 Net changes of items other than shareholders' equity during the period (2,378) 18,222 (487) 15,357 (437) 14,920 Total changes during the period (305) 30,382 1,216 31,293 (2,326) 18,222 (487) 15,409 (437) 46,265 Balance at March 31, 2011 .............. ¥231,381 ¥196,330 ¥ 94,892 ¥(5,800) ¥516,803 '( (810) ¥ 5,010 ¥(749) ¥ 3,451 ¥6,100 ¥ 526,354 U.S. dollars Shareholders'**~ui!)'** unrealized Deferred foreign Common Caprtal Retained LI?Sstreasury Total holdrng gain Ooss) on currency

stock surplus earnings common shareholders' gainon hedging translation comprehensive Minority Total (Note 12) (Note 12) (Note 12) stock, atcost equity securities instruments adjustments income interests netassets Balance at March 31, 2010... ....... $2.782,693 $2,364,822 775,826 $(84,377) $5,838,965 $ 18,232 $(158,893) $(3,150) $(143,812) $78,616 $5,773.770

Net income
....... ........................ 280,276 280,276 280,276 Decrease resulting from purchase of treasury stock. (673) (673) (673) Disposition of treasury stock. (3,668) 16,512 12,844 12,844 Changes in scope of consolidation and application of the equity method
.. 85,111 (1,214) 83,896 625 625 84,521 Net changes of items other than shareholders' equity during the period
............... (28,598) 219,146 (5,856) 184,690 (5,255) 179,434 Total changes during the period
... (3,668) 365,387 14,624 376,343 (27,973) 219,146 (5,856) 185,315 (5,255) 556,404 Balance at March 31, 2011.............. $2,782,693 $2,361,154 $1,141,214 $(69,753) $6,215,309 $ (9,741) $ 60,252 $(9,007) $ 41,503 $73,361 $6,330,174 See accompanying notes to consolidated financial statements.

Annual Report 2011 115 ..,., :::J 

### "'**~** o;· V> ro**~** c;· :::J

### Statement
The foregoing financial statements are complete and accurate to the bestofmy knowledge and belief

Dated: February 17,2012

# c~'q<:__~:y**"'~~** By: Eiji Kanazawa Title: SeniorVice President Finance & 

### Accounting All Nippon Airways Co., Ltd.

## CERTIFICATE OF SERVICE I hereby certify that on this 2nd day ofMarch 2012, a copy ofthe foregoing Application ofAll Nippon Airways Co., Ltd. was served by electronic mail and/or first-class mail, postage pre-paid, on the following: R. Bruce Keiner, Jr. Lorraine B. Halloway Gerald F. Murphy Counsel for ContinentaVUnited Airlines Crowell & 

## Moring LLP 1001 Pennsylvania Avenue, N.W. Washington, D.C. 20004-2595 rbkeiner@crowell.com lhalloway@crowell.com gmurphy@crowell.com Dan Weiss Managing Director
- International & 

## Regulatory Affairs United Air Lines 77 West Wacker Drive-HDQIZ Chicago, IL 60601 dan.weiss@united.com Stephen J. Morrissey Managing Director, Regulatory and Policy United Air Lines, Inc. 1225 New York Avenue, NW- DCAIZ Suite 1100 Washington, DC 20005 steve.morrissey@united.com Jonathan T. Linde Managing Director & 

## Senior CounselRegulatory United Air Lines, Inc. 77 West Wacker Drive-HDQLD 16th Floor Chicago, IL 60601 jonathan.linde@united.com Carl B. Nelson, Jr. Associate General Counsel Robert Wirick American Airlines, Inc. 1101 Seventeenth Street, N.W. Suite 600 Washington, D.C. 20036 carl.nelson@aa.com robert.wirick@aa.com Alexander Van Der Bellen JeffMorgan Delta Air Lines 1212 New York Avenue, NW Suite 200 Washington, D.C. 20005 sascha.vanderbellen@delta.com jeff.morgan@delta.com Anita Mosner Jennifer Nowak Counsel for United Parcel Service Holland & 

## Knight 2099 Pennsylvania Avenue, NW Suite 100 Washington, D.C. 20006 anita.mosner@hklaw.com jennifer.nowak@hklaw.com Kevin P. Montgomery Peter Beckett Polar Air Cargo, Inc. 1747 Pennsylvania Avenue, N.W. Suite 875 Washington, D.C 20006 kevin.montgomery@polaraircargo.com peter.beckett@polaraircargo.com

## John M. Allen Director Flight Standards Service Federal Aviation Administration 800 Independence Avenue, S.W. Room 821 Washington, D.C. 20591 john.allen@faa.gov Jonathan B. 

## Hill Counsel for Hawaiian Airlines Dow, Lohnes & 

## Albertson, PLLC 1200 New Hampshire Avenue, N.W. Suite 800 Washington, DC 20036-6802 jhill@dlalaw.com G. Bailey Leopard Angeline Garbuzinski Legal and Regulatory Affairs Federal Express Corporation 3620 Hacks Cross Road Building B, 3rct 

## Floor Memphis, TN 38125 anbird@fedex.com gbleopard@fedex.com Kelli Bryan Ranjit Seth Blair Berselli Charter Sales Evergreen International Airlines, Inc. 3850 Three Mile Lane McMinnville, OR 97128 charters@evergreenairlines.com ranjit.seth@evergreenairlines.com blair.berselli@evergreenairlines.com Don H. Hainbach Counsel for Nippon Cargo Airlines Garofalo Goerlich Hainbach PC 1200 New Hampshire Avenue NW Suite 800 Washington, D.C. 20036-6802 dhainbach@ggh-airlaw.com Krishna "Kris" Urs Deputy Assistant Secretary for Transportation Affairs U.S. Department ofState 2201 C Street, N.W., Room 5830 Washington, D.C. 20520 urskr@state.gov William Karas Steptoe & 

## Johnson Counsel for Japan Airlines Co, Ltd. 1330 Connecticut Avenue., N.W. Suite 700 Washington, D.C. 20036 wkaras@steptoe.com Malcolm L. 

## Benge Counsel for World Airways Zuckert, Scoutt & 

## Rasenberger LLP 888 1 

# ih Street, N,W. Suite 700 Washington, DC 20006 mlbenge@zsrlaw.com Russell E. Pommer Associate General Counsel and Director ofRegulatory Affairs Atlas Air, Inc. 1747 Pennsylvania Avenue, N.W. Suite 875 Washington, D.C 20006 rpommer@atlasair.com Howard Kass Managing Director & 

## Associate General Counsel US Airways 1401 H Street, N.W. Suite 1075 Washington, D.C. 20006 howard_ kass@usairways.com

## John L. Richardson Joan Canny Counsel for Amerijet International John L. Richardson, P.L.L.C. 555 13th 

## Street, N.W. Suite 420 West Washington, D.C. 20004 jrichardson@johnlrichardson.com jcanny@amerijet.com Aaron Goerlich Counsel for Southern Air Garofalo Goerlich Hainbach PC 1200 NewHampshire Avenue NW Suite 800 Washington, D.C. 20036-6802 agoerlich@ggh-airlaw.com