CSR Report 2007 ANA Group CSR Message

ISSN 1881-2031 ANA Group

The ANA Group is fulfilling its corporate social responsibility in every sphere of its business with the slogan “Anshin, Attaka, Akaruku-Genki! (Reliable, Warm, Enthusiastic!).”

Anshin What is the greatest value that ANA can offer its customers? —Reliability, our promise. It is the reason customers choose ANA, and ANA will never (Reliable) let them down.

● Adherence to safety ● Solid management ● Environment-friendly airline ● Steady financial performance ● Relationship of trust with business partners

Flying with ANA is a “warm” experience from the time you choose your Attaka itinerary to the time you get home. The time spent with ANA is not just (Warm) about moving from one place to next. It’s the warmth of the reception and hospitality.

● Friendliness and warm hospitality ● Focus on customer feedback ● Consideration for diversified customers ● Contributions for communities and society

ANA is the most enthusiastic airline group in the world. The smiles of Akaruku- hard-working staff, always coming up with new ideas, and their energy Genki! are contagious. Everybody becomes enthusiastic when in contact (Enthusiastic!) with ANA.

● Health and safety of employees ● Fostering innovative personnel ● New ideas for customers

2 CSR Report 2007 ■ Proﬁ le CONTENTS ANA, founded in 1952, has been providing air transportation service for more than a half ANA Group CSR Message 2 century with ﬂ ight safety as its top priority. Message from the President 4 Thanks to your support, we have grown to be one of the largest airlines in the world, Special Feature—Responsibility to Society, Contributions to the World carrying over 51 million passengers per year, Special Feature 1 Pledge of Safety—ANA Group Safety Education Center 6 proof of the high level of customer trust in Special Feature 2 Bridging Nations—20 Years of ANA China Service 10 the ANA Group. ANA Group at a Glance, Routes and Fleet 12 The ANA Group will continue working toward its goal of becoming the number one ■ Management airline in Asia by raising customer satisfaction Corporate Philosophy, Corporate Vision 16 and by placing utmost priority on safety. CSR—Basic Perspective and Promotion 17

■ Outline of this Report Corporate Governance 18 Editorial Policy Risk Management 20 The ANA Group aims to pursue business in Compliance 22 a socially responsible manner; each year since 2005 we have produced a CSR Report to Internal Auditing 23 update stakeholders on our activities. ■ Safety

Organizations Covered Report: “Third-Party Opinions on Safety—The ANA Group Safety Advisory Panel” 24 In principle, the ANA Group as a whole. Perspective on Safety 26 (Some activities are distinct to All Nippon Approach to Safety 26 Airways Co., Ltd. or its Group companies.) ■ Finances Period Covered Report: “Airline of the Year 2007” 32 April 1, 2006 to March 31, 2007 ANA Group Mid-Term Corporate Strategy (FY2006–FY2009) 34 (Includes some activities before or after this period.) Financial Relations with Stakeholders 36 Communication with Shareholders and Investors 37 Reference Guidelines “Sustainability Reporting Guidelines Version 3.0” ■ Society Global Reporting Initiative Report: “Quality Management of Products and Services” 38 “Environmental Report Guidelines (2007)” Raising Customer Satisfaction 40 Ministry of the Environment (Government of CS Activities 42 Japan) Consideration for All Customers 44 Date of Publication Contributing to Communities and Society 46 October 2007 Supporting the Next Generation 48

Cover Art and Illustrations Relation with Business Partners 49 The cover was designed using winning Fostering a Spirit of Challenge 50 entries in the Fourth Aozora International Safe and Pleasant Workplace 52 Environmental Picture Book Competition Employee Communication 53 sponsored by ANA. ■ Environment Interview: “Environmental Efforts—Global Warming Prevention Measures from the Frontline” 54 Environmental Policy 56 Environmental Management 57 ANA Group Ecology Plan 2003–2007 58 Introduction of Boeing 787 60 Promoting Environmental Management 62 Climate Change 65 Air Pollution 70 Noise 72 Resource Recycling 73 Reducing Hazardous Chemicals 74 Environmental Contributions 75 Global Initiative 77 ANA Group Environmental Data 78

■ Third-Party Assessments 82 GRI Content Index 83

CSR Report 2007 3 Message環境 from the President

Securing Stakeholder Trust

In February 2007, ANA was voted “Airline of the Year 2007” by Air Transport World, which has been presenting this award for 33 years. The reasons were our “introduction of innovative services while maintaining safety” and our “improved operating results, achieved despite several factors dampening air transportation demand and changes in the domestic competitive environment.” We are delighted to receive this award; we consider it a validation of our strategy that places utmost priority on safety, and has as its cornerstones security and customer trust. However, we would like to apologize to stakeholders for two incidents affecting customer security and trust that occurred this spring. The entire ANA Group will make every effort to prevent the recurrence of such incidents and recover your trust. On March 13, Flight 1603 from Osaka to Kochi experienced a malfunction and made an emergency landing at Kochi Ryoma Airport without its nose landing gear. We deeply apologize for the concern and inconvenience that this caused to many people, including those on board. After the accident, in addition to an emergency inspection imposed by the Ministry of Land, Infrastructure and Transport, we held our own special examination of all aircraft of this type, suspending ﬂ ight operations until we had fully conﬁ rmed their safety and soundness. We will continue to prioritize safety over all else. In the second incident, on May 27, a computer system

Humbly striving to provide security and gain the trust of customers

4 CSR Report 2007 failure resulted in the cancellation or delay of many of our Hongqiao (Shanghai) was launched in September. domestic fl ights, again causing great inconvenience to our This year is also the tenth anniversary of Star Alliance, the customers. The computer system has been enhanced to pre- global alliance of which ANA is a member, whose network vent any recurrence, and with the aid of external consultants, and list of benefi ts just keep on growing. we are now studying how to further refi ne system infrastruc- To stand out in the Alliance, the ANA Group has the ture. Customer feedback will be studied as well to improve goal of becoming the number one airline in its business base emergency procedures. of Asia in terms of quality, customer satisfaction and value creation. Endless Efforts to Ensure Safety We will strive to become an airline that offers dreams and experiences to our stakeholders. Taking to heart the teach- As stipulated in the ANA Group Safety Principle, safety is our ings of 15th-century Chinese philosopher Wang Yangming promise to the public and the foundation of our business. found in his Inquiry on the Great Learning—“Modesty is the Safety assurance is an endless challenge. Pursuing safety bedrock of good, arrogance that of evil”—we will continue through each employee’s responsible and sincere action and humbly striving to better our company and gain the trust of continuing to offer secure, reliable service is, we believe, our stakeholders. most important corporate social responsibility (CSR). At ANA, we have been fortunate to not sustain any We would very much appreciate hearing your frank com- accidents causing passenger deaths since the 1971 Shizukui- ments on our “Anshin, Attaka, Akaruku-Genki! (Reliable, shi accident. Most of the employees who experienced that Warm, Enthusiastic)” CSR efforts. accident have since retired. To educate current and future employees about the horror of airline accidents, and as part October 2007 of our mandate to prioritize safety, we established the ANA Group Safety Education Center in January 2007. The facility impresses on visitors the causes of past accidents, including human error, and what can be done to ensure fl ight safety. Please see the feature pages in this CSR Report for details. Mineo Yamamoto Protecting the Planet President and Chief Executive Offi cer

While CO2 emissions from aviation account for only 0.8% of Japan’s total emissions, we are approaching environmental issues from a global standpoint. When the ﬁ rst commitment period of the Kyoto Protocol begins in 2008, ANA will introduce the new Boeing 787, whose impact on the global environment is approximately 20% less than current aircraft. Through business decisions such as this, and by instilling a strong environmental awareness in each and every employee, the ANA Group will become a leading force in protecting the planet.

Asia’s Number One

This year marks our 20th anniversary of service to China. Since our ﬁ rst ﬂ ights between Narita and Beijing via Dalian on April 16, 1987, today we offer passenger service on 20 routes in ten cities there—154 roundtrips a week—as well as cargo service on 11 routes (34 roundtrips a week). And a new passenger service connecting Haneda (Tokyo) and

CSR Report 2007 5 Responsibility to Society, Contributions to the World 1

Pledge of Safety ANA Group Safety Education Center

Senior Executive Vice President Suguru Omae (Chief Safety Ofﬁ cer)

In the following interview, Senior Tell us about the ANA Group’s perspective Executive Vice President Suguru Omae, on safety. Chief Safety Ofﬁ cer of the ANA Group, discusses the Group’s overall perspective Our Safety Principles says it all—that “safety is on ﬂ ight safety and the ANA Group our promise to the public and the foundation of Safety Education Center (ASEC) launched our business.” The ANA Group thus provides air in January 2007. transport operations based on a foundation of security and reliability. Aviation accidents are particularly heart- wrenching. My feeling of regret toward passengers and their families who suffered in past accidents hasn’t changed to this day. Fortu-

6 CSR Report 2007 nately, we haven’t experienced any accidents Japan’s Civil Aviation Law was revised in resulting in fatalities since 1971. Still, this fact October 2006 and now mandates that all air- alone doesn’t guarantee future safety. lines establish a Safety Management System Each fl ight involves many ANA Group (SMS). This is a system where all employees— employees. Each and every employee must from top management to the rank and fi le— observe laws and regulations, always pay atten- take concerted actions in every aspect of air tion and carry out their daily tasks with a sense transportation safety. of tension. There must be good communication SMS involves top management taking the in the workplace where all can express them- initiative in the organization’s pursuit of safety; selves. These points are extremely important in establishing and promoting safety-related prin- maintaining fl ight safety. I’m certain that if they ciples and policies; and systematically selecting, are followed we can prevent the recurrence of analyzing and assessing factors that might dangerous incidents, minimize risks and achieve undermine safety, taking measures as needed. even higher levels of safety. As Chief Safety Offi cer and Chairman of the Group Safety Promotion Committee, it’s my job What efforts are underway to ensure to monitor the progress of each issue and make safety? sure that any necessary measures are implemented in a timely manner. But for SMS to ANA fl ights are operated by seven Group air- be truly effective, you need to raise employee lines. To ensure safety at each, we promote awareness through safety education. For this Groupwide activities centering on the Corporate reason we launched the ANA Group Safety Edu- Safety & Audit division. cation Center (ASEC) in January 2007.

Outline of ANA Group Safety Education Center Through such media as news Exhibits of three major accidents clippings and videos of aviation accidents, the ANA Group Safety Education Center (ASEC) is an educational facility to raise safety awareness in employees and impress on them the individual responsibility that comes with working at a public transportation provider. At ASEC, employees come face to face with ANA Group accidents—such as the Tokyo Bay crash, Matsuyama accident and Shizukuishi collision—so that they will not be forgotten. The facility also shows employees how accidents can occur, including through human error, to think about how to ensure ﬂ ight safety. Although intended as an educational facility for ANA Group employees, visitors interested in air safety are welcome when courses are not in session. For details please see our website. URL http://www.ana.co.jp/ana-info/ ana/lounge/education/asec.html (Japanese)

CSR Report 2007 7 Responsibility to Society, Contributions to the World

What prompted the decision to launch helps them maintain a sense of tension and a the ASEC? shared sense of purpose. Its basic purpose is to remind all employees More than 35 years have passed since the Shizu- at the ANA Group of the seriousness of air kuishi accident. Some 95% of current employees accidents and to encourage a shared determina- joined the company after the accident. Since the tion to prevent them. number of employees who experienced the acci- While the above purpose has great value, Learning from past accidents dent is decreasing, 12 employees, mainly from we made it something more by incorporating Passenger Services, came up with the idea of various educational ideas to make it useful in creating a facility dedicated to remembering the daily work. One such idea is the “Human Error accident called “Learning from the Past.” Experience Corner” produced with professional Most of the young employees who sug- advice. So it’s a place for both feeling and learn- gested the idea have, of course, never ing, where you can learn how accidents hap- experienced an aviation accident. Because pened and even experience the errors leading up the underlying concept—that tragic accidents to them on computers. should not be forgotten—was from such young employees, it really made a splash. I myself was Are you saying that human error is a major touched by these employees wishing to create a cause of accidents? facility to educate succeeding generations. In setting up the ASEC, deciding what to That’s correct. Rather than technical malfunc- present and how to present required careful tions, about 70% of aviation accidents are consideration. Numerous people contributed; caused by human error. Technologies have come the facility is full of their feelings. a long way and we have highly advanced aircraft, but without human hands to steer, input What characteristics does it have? data, conﬁ rm and so on, we cannot ﬂ y them. So unless we solve issues surrounding human error, The ASEC is a place that impresses on all we cannot expect to improve safety. employees the ANA Group Safety Principles and The ANA Group has been pursuing human

Learning about human error

8 CSR Report 2007 Comment from Originator Passenger Services is the initial point of contact for customers at the airport. When a major accident occurs in the airline industry, we are often asked by customers if ANA is safe, and from this grew the notion that solving customer anxiety requires effort on the part of all employees. Then, in April 2005, an accident occurred on the JR Fuku- chiyama Line. From the many magazine articles on safety that followed, I learned that East Japan Railway Comany has an exhibition facility focusing on accidents, and I thought: if ANA had such a facility, awareness for safety might increase. This is how I came to propose the facility. With the cooperation of 12 members from other sections in the ANA Group, the facility was created not just as a display, but as one for learning; we wanted ANA Group Safety Education Center Floor Plan it to show the whole truth, make us think about safety and learn from past examples. I hope the facility will help error issues for more than 20 years. We have learn the facts behind accidents we’ve experi- everyone at the ANA Group studied them systematically and compiled the enced. We are planning for all Group employees become more safety-conscious. results into pamphlets and training programs. to visit over the next three years, which I expect We also compiled an Examples of Human Error will enhance our culture of safety. guide to introduce speciﬁ c instances from the I would like all employees to come and see past and thereby control human error, which, it not just once, but twice, thrice, and each time alas, we can never eliminate entirely. there is a need. This facility is the starting point of our safety. It is very valuable.

What results are you expecting from Yoshiko Shingo the ASEC? What are your future hopes Passenger Services, for Group safety? Tokyo Airport Offi ce This facility doesn’t simply show us how fright- ening accidents are. The sorrow and agony of We should never have accidents. I feel very remaining family members—which you may feel strongly about it. When it comes to creating if you imagine the time when you lose your a corporate culture that prioritizes safety, your own parents—are unthinkable. I want visitors to work is never done. Making sure that everyone acquire fi rsthand knowledge to lessen the pos- is in fact prioritizing safety is extremely impor- sibility that they might cause an accident. I hope tant. I would like to raise awareness of safety the facility will make you think, learn how to across the entire ANA Group and make the cul- avoid hazards, and motivate you into action. ture to protect it a universal one. I would like us Since most accidents are caused by human to continue to be an airline that never compro- error, what can we do to avoid it, and what mises on safety, always making persistent efforts should we do if and when it happens? The into the future, and always earning the trust of answer is to think hard and learn. Even employ- customers and society. ees not directly involved in fl ight operations can

CSR Report 2007 9 Responsibility to Society, Contributions to the World 2

Bridging Nations 20 Years of ANA China Service

In 2006, more than 4.56 million people traveled between Japan Promoting Good Relations and China; as the latter’s economy continues to develop, we can Okazaki was born in 1897 in Okayama and expect even greater movement of people and materials between became interested in China at high school the two nations. ANA was the fi rst Japanese airline to resume through a friend there named Chen Fanjiu. After fl ights to China after the war, in 1972, and since inaugurating graduating from Tokyo University in 1922, he regular service in 1987 we have gradually expanded our network started working at the Bank of Japan, which there. In April 2007 we marked the 20th anniversary of ANA’s sent him to Shanghai for an extended period. China service, a relationship that can be traced back to our While there he witnessed the turbulence of second president, Kaheita Okazaki. world affairs and learned the importance of friendship between foreign countries. When he later entered industry, becoming president of ANA in 1961, Okazaki worked tire- lessly to promote trade and cultural exchanges between Japan and China. He visited the country some 100 times, meeting with then-Premier Zhou Enlai and other senior offi cials and contributing to its friendly relations with Japan. When the two nations normalized ties in 1972, Premier Zhou Enlai himself commended Okazaki for his efforts, remarking that “In China we have a

Second President Kaheita Okazaki Kaheita Okazaki (left) talking with Premier Zhou Enlai saying: when we drink water, we never forget Photo: Kaheita Okazaki Memorial Museum who dug the well.”

Operated on ANA aircraftaircraft and with ANA crcrewew Harbin Twenty Years of China Service Code-sharCode-sharee flights with Air China ANA was the ﬁ rst Japanese airline to serve Code-sharCode-sharee flights with Shanghai Airlines Changchun SapporSapporoo Connection service with Air China China after the war—a 1972 charter carrying Shenyang the Shanghai Ballet Troupe from Haneda (Tokyo)

Sendai to Hongqiao (Shanghai). At Hongqiao Airport,

Beijing the ANA ﬂ ight received an ardent musical wel- Narita Toyama come by an estimated 3,000 people. Soon after- Tianjin Dalian Kansai Nagoya HirHiroshimaoshima Qingdao Fukuoka Xian

Nanjing Shanghai

Hangzhou Chongqing Wuhan

Chengdu

Kunming XiamenXiamen

Guangzhou Shenzhen Hong KongKong

China Network as of August 2007 Ceremony at Narita Airport to inaugurate Narita-Dalian-Beijing service from April 1987 10 CSR Report 2007 At the party to commemorate 20th anniversary of China service, Chairman Yoji Ohashi ANA Blue Sky Hope Primary School students at Beijing Airport receiving a photo of Ms. Zhou and Kaheita Okazaki

wards, in September, Japan and China restored sector employees, these graduates are diplomatic relations. now in positions to help strengthen ties In April 1987 ANA launched its Narita-Dalian- between their home countries and Japan. Beijing route as a scheduled service, and Oka- zaki visited China on its fi rst fl ight. So highly A Bridge Between Japan and China regarded were his efforts for promoting good Starting with our cooperation with relations between Japan and China that a recep- Shanghai Airlines in April 2002 and later ANA Blue Sky Hope Primary School tion in his honor was held at the Great Hall of with Air China in February 2004, ANA the People. has been establishing cooperative relationships Since then we have expanded our China with airlines in China. In May 2003, we started network to include Hong Kong, Shanghai, Tian- to employ Shanghai-based cabin attendants, jin, Shenyang, Qingdao, Xiamen, Hangzhou and expanding our base of operations. In September Guangzhou. Now we operate 20 passenger 2007, service between Haneda (Tokyo) and Hon- routes with 154 weekly fl ights; in 2006 some gqiao (Shanghai) was launched, drawing the 1.36 million passengers fl ew the network. Cur- two countries even closer. With these efforts rently 34 cargo fl ights per week serve 11 routes. and more, ANA is helping to connect people and businesses in Japan and China. Donating Hope: A Primary School In April 1997 ANA donated the ANA Blue Sky Hope Primary School to Luanping City, Hebei Looking Forward to Your Continued Success, and to Our Continued Friendship Province. This gesture was to show our apprecia- The year 2007 is an important one for us: it marks not only the 35th anniversary of tion of and support for Chinese culture and edu- normalized diplomatic relations between Japan and China, but also the 20th anniversary of ANA service to China, for which I offer my deepest congratulations. cation, and coincided with the 10th anniversary ANA launched the fi rst scheduled fl ight to China on April 16, 1987. As I recall it was of ANA’s China service. The date also marked the day of Kaheita Okazaki’s 90th birthday. Mr. Okazaki was an old friend of China’s and the 100th anniversary of the birth of Okazaki, contributed greatly to mending diplomatic ties between our two countries through the whose efforts led to the restoration of Japan’s Japan-China Trade Memorandum. When the two nations normalized ties in 1972, Premier Zhou Enlai commended Okazaki for his efforts, remarking that “In China we have a saying: diplomatic relations with China in 1972. On the when we drink water, we never forget who dug the well.“ 30th anniversary of this event, in September ANA kept alive Mr. Okazaki’s spirit and through great effort has maintained and 2002, ANA donated a second Hope Primary furthered friendly relations between our nations. Exchanges of people as well as commercial School to Xinglong City, Hebei Province. activities will further grow thanks to the Beijing Olympics in 2008 and Shanghai Expo in 2010; faster logistics will be promoted. I am certain that ANA’s China routes will play an even bigger role. The Okazaki Kaheita International Scholar- In April 2007 Premier Wen Jiabao visited Japan, and the leaders of both countries con- ship Foundation fi rmed the strategic importance of reciprocal relations. Also that year, the Haneda–Hongqiao Established in 1990 to promote personal devel- shuttle service was inaugurated. I expect that ANA will adhere to the policy of “peaceful opment in Asian countries as advocated by coexistence, ages of friendship, reciprocal cooperation, and mutual development“ through its collaborations with airlines and other com- Okazaki, the Foundation awards scholarships panies in China, and continue contributing to the development of to students in China and Southeast Asian coun- civil aviation in our country while further promoting Sino-Japanese tries, invites them to Japan and offers support relations. Best wishes for ANA’s continued success as a wing of the for graduate studies. To date the Foundation Japan-China friendship. has awarded scholarships to more than 70 stu- Kong Xuanyou, Minister-Counselor, dents; as teachers, civil servants and private- Embassy of the People’s Republic of China in Japan

CSR Report 2007 11 ANA Group at a Glance Outline of Business

The ANA Group consists of All Air Transportation Nippon Airways Co., Ltd. (ANA), ANA and its six air transportation operators provide passenger, cargo, 114 subsidiaries and 42 afﬁ liated and mail transportation services. According to IATA (International Air companies*. The Group’s business Transport Association) passenger transport statistics, the ANA Group ranks eighth among the world’s airlines. is based on air transportation, along with travel services and other operations. *as of June 2007 • Domestic Passenger Operations With 938 ﬂ ights each day on 130 routes—representing some 46.47 million passengers a year—the ANA Group enjoys a leading market share of 48.4%. With the keywords “simple” and “convenient,” we are working to improve all aspects of customer service.

• International Passenger Operations The ANA Group operates 596 ﬂ ights a week on 38 routes and carries 4.55 million passengers a year from Japan to cities around the world. As a major member of Star Alliance, the world’s largest airline alliance, the ANA Group provides high-quality international air transportation.

• Cargo and Mail Operations The ANA Group uses four cargo freighters along with available cargo space on passenger aircraft. We operate eight domestic cargo ﬂ ights daily on ﬁ ve routes, and 108 international freighters a week on 20 routes. Efforts to enhance this core business are ongoing, including the acquisition of new freighters.

• Other Air Transportation Operations Along with air transportation operations, the ANA Group provides customer services, aircraft maintenance and airport handling. These operations are also offered to airlines outside the ANA Group.

Travel Services With ANA Sales Co., Ltd., as its driving force, the Group markets a wide range of travel products catering to both individuals and groups, as well as installment savings plans for future travel. The principal activities are the sales of ANA ﬂ ight tickets and the planning and sales of ANA Hallo Tour and ANA Sky Holiday travel packages making use of ANA’s network.

Other Businesses The Group’s other businesses are principally in the areas of information and telecommunications (development and sales of airline-related information terminals and software), logistics (management of cargo storage and deliveries) and trade (import/export of aircraft-related materials, as well as retail at airports and mail-order sales).

12 CSR Report 2007 ANA Group Organization

ANA Gen. Mtg. of Management Committee Group Companies Stockholders Subsidiaries: 114 Affiliates: 42 Operations Committee ■ Air Transportation Corporate Auditors Corporate Auditors Air Nippon Office Operations Report Board of Corporate Auditors Air Nippon Network & Review Committee Air Japan Board of Directors Air Central CS Promotion Committee Air Next ANA & JP Express Safety Promotion Committee Chairman ■ Air Transportation Support-Related IT Strategy & Governance Committee Risk Management Committee International Airport Utility Internal Audit President & CEO ANA Catering Service Senior Executive CSR Promotion Committee Compliance Committee New Tokyo Airport Service Vice President ANA Aircraft Maintenance Environment Committee ■ Travel Services

ANA Sales Headquarters Departments ■ Other Businesses All Nippon Airways Trading Operations & Airport Services ANA Information Systems Planning Sky Building Service ANA Logistic Service Marketing & Sales Cargo Marketing Flight Operations Engineering Inflight Services ANA Business Create & Services & Maintenance

Domestic Branches, Overseas Branches, Overseas Airport Offices Domestic Airport Branches, Domestic Airport Offices As of June 2007

Various Data

Corporate Outline Operating Revenues Number of Passengers Domestic International

(billions of Yen) (1,000 people) Company name All Nippon Airways Co., Ltd. 1,500 1,489,6 50,000 47,133 44,784 44,486 45,474 46,471 President Mineo Yamamoto 1,400 1,368,7 40,000 1,292,8 Date of establishment December 27, 1952 1,300 30,000 1,215,9 1,217,5 Address Shiodome City Center, 1,200 20,000

1-5-2 Higashi-Shimbashi, 1,100 10,000 3,784 3,301 4,116 4,135 4,552 Minato-ku, Tokyo 0 0 2002 2003 2004 2005 2006 FY 2002 20032004 2005 2006 FY 105-7133, Japan

Website URL http://www.ana.skyweb.com Operating Income (Loss) & Operating Income (Loss) Margin Cargo & Mail Volume Domestic International Paid-in capital ¥160.001 billion (billions of Yen) % (1,000 tons) 100 88.8 92.1 10 600 510 528 549 Number of employees 32,460 (ANA Group) 80 77.7 8 500 462 487

60 6.5 6.2 6 400 6.0 293 40 34.3 4 300 248 263 207 234 20 2.8 2 200 -2.5 0 0 100 -20 -0.2 -1 0 2002 20032004 2005 2006 FY 2002 20032004 2005 2006 FY Segment Revenues / Percentage of Total Operating Revenue Operating Income (Loss) Operating Income (Loss) Margin

Air Transportation 72.6％ Net Income (Loss) Number of Employees

● Domestic passengers 42.2％ (billions of Yen) (people) 40 32.6 34,000 ● International passengers 16.2％ 32,460 30 26.9 26.7 24.7 32,000 ● Cargo and mail 6.1％ 20 30,322 ● Other air transportation 8.1％ 10 30,000 28,907 28,870 29,098 0 ● Travel services 12.1％ 28,000 ● Hotel operations 3.9％ -10 -20 26,000 ● Other businesses 11.4％ -28.2 -30 0 *Hotel operations were sold in June 2007. 2002 2003 2004 2005 2006 FY 2002 2003 2004 2005 2006 FY

CSR Report 2007 13 ANA Group at a Glance Routes and Fleet

Domestic Network (as of June 2007) Wakkanai Rishiri Passenger Cargo Okhotsk Monbetsu Routes : 130 Routes : 5 Asahikawa Memanbetsu Nemuro Nakashibetsu Flights/day : 938 Flights/day : 8 Sapporo (Okadama) Kushiro Sapporo (Chitose) Hakodate Cities served by ANA Group, including code- sharing with IBEX Airlines, Hokkaido Interna- tional Airlines (Air Do), Skynet Asia Airways Odate-Noshiro and Star Flyer Akita routes served by cargo ﬂ ights only Shonai

Sendai Noto Niigata Fukushima Toyama Komatsu Tottori Yonago Tokyo Narita Osaka (Haneda) Hagi Iwami (Itami) Tsushima Okayama Kobe Nagoya Hiroshima Osaka (Chubu) Yamaguchi Ube Takamatsu (Kansai) Oshima Fukuoka Matsuyama Kitakyushu Tokushima Saga Nagasaki Oita Kochi Hachijojima Goto Fukue Kumamoto Miyazaki Kagoshima

Okinawa (Naha) Miyako

Ishigaki

Fleet: 12 types / 210 aircraft (as of March 2007) 1. Boeing 747-400 23 2. Boeing 777-300 15 1 2 3 7 8 9 3. Boeing 777-200 23 4. Boeing 767-300 56 4 5 6 10 11 12 5. Boeing 737-700 10 6. Boeing 737-500 25 7. Airbus A321-100 3 8. Airbus A320-200 29 9. Bombardier DHC-8-400 14 10. Bombardier DHC-8-300 5 11. Fokker F-50 3 12. Boeing 767-300 (freighter) 4

14 CSR Report 2007 International Network (as of June 2007) Passenger Cargo Routes : 38 Routes : 20 Flights/week : 596 Flights/week : 108 (ANA Group total)

Cities served by ANA Group Cities served by code-sharing routes served by cargo ﬂ ights only

Boeing 787, scheduled for debut in 2008 (generated image) © Boeing

CSR Report 2007 15 Management Corporate Philosophy, Corporate Vision

The ANA Group Philosophy sets ■ ANA Group’s Corporate Philosophy forth the desired direction for the Group and reafﬁ rms what The ANA Group Philosophy consists choice. The ANA Group Philosophy was we must constantly be aware of Our Commitments and Course of established in January 2002 following of in our activities. It serves Action. These express our ideals for the discussion across all layers of ANA and as the operational foundation Group and the fundamental approach its subsidiaries, from executives to rank- underlying all ANA Group we must take to prevail against the and-ﬁ le employees. business activities. competition and remain the airline of

Our Commitments Course of Action On a foundation of security and reliability, 1) Maintain top priority on safety the ANA Group will: 2) Be customer oriented ● Create attractive surroundings 3) Contribute to society for customers

● Continue to be a familiar presence 4) Embrace new challenges

● Offer dreams and experiences 5) Debate with active interest, decide with to people around the world confidence, and execute with conviction 6) Build a powerful ANA Group by effectively using human resources and focusing on teamwork as a competitive strength

■ ANA Group’s Corporate Vision

The ANA Group’s Corporate Vision sets ANA Group's Corporate Vision out our immediate goals and is based With passenger and cargo transportation in on the ANA Group Philosophy. Our pri- Japan, elsewhere in Asia, and around the mary aspiration is to become the lead- world as its core field of business, the ANA ing airline-based corporation in Asia. Group aims to be one of the leading corpor- This is not merely a matter of size; we ate groups in Asia. hope to rank ﬁ rst in Asia for quality, Being the leader in Asia means that we will customer satisfaction and value cre- become: ation. To achieve this vision and thor- Number one in quality oughly differentiate ourselves from Number one in customer satisfaction

competitors, we are pursuing a man- Number one in value creation agement strategy that emphasizes proﬁ t (i.e., value creation), customer satisfaction (including punctuality), and each employee’s individuality and creativity.

16 CSR Report 2007 CSR—Basic Perspective and Promotion

In April 2007, the ANA Group ■ Basic Perspective established a CSR Promotion Division with the objective of The ANA Group has a diverse range CSR means that each ANA Group further enhancing corporate value of stakeholders—customers, sharehold- member understands and follows the by mobilizing the entire Group ers and investors, employees, business ANA Group Philosophy, thereby giving in the areas of society, the partners, and local communities. The all stakeholders a sense of security and environment, and sustainable purpose of our CSR activities is to trust. In addition to our underlying co-existence. fulfi ll our responsibility to stakeholders commitment to safety, we will fulfi ll our by clearly communicating with them, responsibilities to stakeholders in the allowing us to co-exist with society in following three steps: a sustainable manner while enhancing corporate value. 1. We will fulfi ll our economic responsibility*1 by ensuring safety and compliance (the base line). ANA’s Perspective on CSR 2. To improve quality and employee Shareholders motivation, we will fulfi ll our Customers Investors responsibility to customers by enhancing CS (Customer Satisfac- Business 2 Partners Responsibility to Social Innovation* Employees tion) and to employees by increasing ES (Employee Satisfaction). customer satisfaction CS ES employee satisfaction (quality enhancement) (motivation enhancement) 3. We will fulfi ll our responsibility for social innovation*2 by helping Public Communities Authorities to solve social and environmental Financial Responsibility issues. Compliance Responsibility *1 Economic responsibility entails implementing thorough risk management and operating the busi- *2 ANA’s Social Innovation Safety Responsibility The role ANA plays through possible ness effectively and effi ciently. Together with cooperation and support from a corporate Global Environment compliance responsibility, the internal control standpoint toward the solution of social and environmental problems. system is reinforced.

■ Strengthened CSR Promotion

Since 2004, CSR at the ANA Group was chaired by the Executive Vice President. promoted through a conference body Further, by incorporating the and its executive ofﬁ ce. In April 2007, a departments of Risk Management, CSR Promotion Division was established Legal Affairs, and Environmental and to coordinate CSR activities throughout Social Affairs, the CSR Promotion Divi- the ANA Group, and in August, we fur- sion consolidates organizations related ther strengthened the system by reorga- to internal control and environmental nizing a Risk Management Committee, and social contributions; the previously Compliance Committee and Environ- dispersed risk management and comment Committee, all under the CSR pliance functions are now consolidated Promotion Committee, the supreme in the new Risk Management Depart- decision-making body for CSR promo- ment, enhancing internal control—the tion, supervised by the President and foundation of CSR.

CSR Report 2007 17 Management Corporate Governance

The ANA Group is instituting a ■ Organizational Structure for Decision Making system of corporate governance that promotes business transparency Issues fundamental to Group manage- decided by the Management Commit- and accountability to stakeholders ment are deliberated, and decisions tee, which is chaired by the president in order to enhance its corporate made, at the Management Committee, and includes the 13 directors (who are value. composed of the president as chairman also corporate executive offi cers), 2 cor- and the executive offi cers and auditors. porate auditors, and other corporate The board of directors decides impor- executive offi cers. Under the Corpora- tant issues that, under the Corporation tion Law of Japan, certain issues must Law of Japan, must be taken up at also be considered by the board of board of directors meetings. directors, which makes the fi nal deci- Important administrative issues are sion on such issues.

■ Management System

ANA appoints 16 directors, fi ve audi- 2. Corporate executive offi cer of operations at each ANA offi ce and tors and 35 corporate executive offi cers system audits of Group companies and reports (including directors). In today’s harsh Personnel appointed to the post of the results to the board of corporate business climate, a competitive man- corporate executive offi cer are thor- auditors and to the representative direc- agement structure is indispensable. For oughly acquainted with the business tors. The auditors share information this reason all directors have a compre- and given the authority and respon- and opinions with the Internal Audit hensive knowledge of operations and sibility to execute their tasks. We Division and the independent auditors management. Our governance struc- started this system in 2001 with a on a quarterly basis and work to ture aims to strike a balance between view to building a scheme enabling enhance auditing. prompt decision-making, effective and such personnel to concentrate on stable effi cient management, and professional operation of the company. Corporate 4. Account Audits auditing and supervision. executive offi cers are selected from As for account auditing, Ernst & Young each fi eld to enhance management ShinNihon audits ANA, its work sites, 1. Board of directors effi ciency. and Group companies in accordance ANA appoints the least number of Each corporate auditor conducts with the Corporation Law and the directors in the interest of prompt audits of operations at each offi ce and Securities Transaction Law. Auditing decision-making. Ever since our found- audits of subsidiaries and reports the results are reported to ANA’s manage- ing, we have appointed external direc- results to the board of corporate audi- ment and to the board of auditors. tors to hear views from an objective tors and to the representative directors. standpoint. With these measures we The auditors share information and 5. Business Advisory Board are working towards strict supervision opinions with the Internal Audit Divi- In addition to those bodies stipulated and faster decision-making. By limiting sion and the independent auditors on by law, we have instituted an advisory terms on the board to one year, our a quarterly basis and work to enhance board comprised of six experts in vari- management system refl ects our share- auditing. ous fi elds. The board’s diverse and valu- holders’ will. able opinions on the overall business The board of directors is led by the 3. Auditing system of the Group are fully refl ected in our chairman. In addition to the directors, To strengthen our auditing capability, management. We held four meetings two of whom are external directors, the we appoint fi ve auditors, including in FY2006. board includes fi ve auditors, three of three from outside the company, to the whom are external auditors. Including board of auditors. Also, one full-time extraordinary meetings, the board of auditor is from outside the company. directors met 13 times in FY2006. Each corporate auditor conducts audits

18 CSR Report 2007 ■ Internal Control System

The ANA Group has been enhancing its and ensure compliance with laws, regu- ance Committee. In April 2003, we also internal control system to increase sta- lations and internal rules. In July 2002 established the Internal Audit Division in bility and efﬁ ciency in business, imple- we established a Risk Management charge of internal auditing to complete ment appropriate information disclosure Committee and in April 2003 a Compli- our system of internal control.

ANA Group Corporate Governance Structure

General Meeting of Stockholders Appointment/ Dismissal Account Audit Independent Auditors Appointment/ Dismissal

Report Report Appointment/ Dismissal Board of Directors 16 directors Corporate Auditors (including 2 external directors) Board of Corporate Auditors Audit Appointment/Dismissal Management Committee 5 auditors Supervision Operations Committee (including 3 external auditors) Chairman Operations Report & Review Committee Report Report Internal Audit President & CEO CS Promotion Committee Report Corporate Auditors Office Senior Executive Vice President Safety Promotion Committee

Direction/Supervision IT Strategy & Governance Committee Advisors CSR Promotion Committee Internal audit Corporate Executive Officers 26 (excluding directors) Risk Management Committee Compliance Committee Direction/Supervision Environment Committee Headquarters Departments & ANA Group Companies

As of September 2007

System to Promote Internal Control

President & CEO

CSR Promotion Committee

Compliance Committee Risk Management Committee

Executive Vice President, Chief CSR Promotion Officer Finance & Accounting Executive Vice President,CSR

(Company) (Executive Office) Internal Audit Division Finance & Accounting Division CSR Promotion Officers CSR Promotion Division/Risk Management & Compliance Department

(Company/Division) CSR Promotion Leaders

As of September 2007

CSR Report 2007 19 Management Risk Management

The Risk Management Committee ■ Risk Management Structure is tasked with providing concrete risk and crisis management to The ANA Group Total Risk Manage- The Risk Management Committee the ANA Group. Ascertaining and ment Regulation specifi es basic points further contains dedicated subcommit- controlling risks that could for overall risk management. Our CSR tees for specifi c risks, such as the Air impede our business enables us Promotion Committee led by the Presi- Transportation Security/Crisis Manage- to maintain stability and smoothly dent comprises corporate auditors and ment Subcommittee, Information Secu- achieve our goals. all directors including senior executive rity Subcommittee and Security Export vice presidents, while our Risk Manage- Control Subcommittee. In the event of ment Committee comprises corporate unforeseen risks, temporary subcommit- executive offi cers and other offi cers tees will be formed to take action in a in charge of each division. Through cross-sectional manner. these committees, important policies and matters are planned and promoted.

■ Risk Management Activities

To ensure stable operations and effec- ulations. Thorough implementation of tively achieve our business goals, we information security across the entire formulated the Risk Management Com- Group is taking place, including the mittee Regulation, Risk Management provision of the Information Security Regulation, and Risk Management Handbook for employee education. Implementation Manual, collectively Each ANA ofﬁ ce and Group com- known as the ANA Group Total Risk pany has appointed a CSR Promotion Management Regulation. Leader who is working to promote risk In addition, since the enforcement management and information security. of the Private Information Protection Law in April 2005, we instituted the Information Security Management Reg-

■ Compliance with Law to Protect the People

Based on Japan’s Law to Protect the we drafted a “business plan for People and Military Attack Contin- implementing measures to protect the gency, ANA and Air Nippon became people” that was reported to the Prime designated public transport organiza- Minister in March 2006, as well as gov- tions in September 2004. Following ernors and mayors of related prefec- Cabinet approval of the Measures to tures and local authorities. Protect the People in October 2005,

20 CSR Report 2007 ■ Crisis Management Structure

As a measure against such crises as ANA Group aircraft accidents and hijackings, we formulated the Emer- gency Response Manual (ERM). The purpose is to have in place a crisis- response structure that enables us to respond to emergencies promptly and properly, minimize loss, ascertain the cause, and resume safe fl ight operations. There exists also the risk of major disasters in Tokyo. For this scenario we formulated a Business Continuity Plan (BCP) to mitigate the operational con- fusion following such a disaster. As a part of this plan we set up backup facilities in the ANA Business Center Build- ing, should our main offi ces in Haneda Backup facilities can accommodate up to 500 persons. or Shiodome become inaccessible. In addition, we have introduced ANA Emergency Call, a system that enables prompt confi rmation of employee safety using emergency contact information stored in the computer system.

ANA Emergency Call guidance card

■ Incidents and Countermeasures

1. Fraud case of former employee to study the case. To prevent any recur- and greatly inconveniencing customers. A former employee in charge of rence, we have strengthened our con- After restoring the system, we investi- accounting was arrested on November trols on accounting procedures in those gated the system infrastructure and any 15, 2006, for allegedly embezzling han- involving account settlements with our shortcomings in passenger handling at dling fees totaling some ¥28 million business partners. the airport. Measures were established over three occasions from July to to prevent any recurrence of such fail- August 2005. The fees were to be paid 2. Computer system failure ures, as well as to enable smooth pas- to a contracted agent for airport han- In the early morning of May 27, senger handling in the event of any dling. Since this incident was brought 2007, the domestic check-in system large-scale disruption at airports. to light through internal investigation failed, resulting in the cancellation * Safety-related incidents are discussed on pages 30 in December 2005, we have continued or delay of more than 130 ﬂ ights and 31.

CSR Report 2007 21 Management Compliance

The ANA Group promotes ■ Compliance Structure compliance by raising awareness through employee education. CSR Compliance at the ANA Group is pro- out the Group; individual Group com- Promotion Leaders inspect the moted by the Compliance Committee panies are the responsibility of CSR workplace to identify and solve of corporate executive offi cers and divi- Promotion Offi cers. Executives are also any problems. sion directors. The Chief CSR Promotion instructed to exercise leadership for Offi cer oversees compliance through- compliance.

■ Reexamination of Compliance Function

Each year, the ANA Group establishes speciﬁ c activities to promote compliance. In FY2006 we worked to promote compliance under a policy of reexamin- ing our compliance function. We conﬁ rmed that the revised Codes of Conduct were being distributed, read and observed. In addition, we examined the workplace status through the auditing results and through questionnaires given to all employees. Many activities such as Compliance website on the intranet seminars were held to adjust our contract and temporary work systems, and to strictly enforce working hours. In these ways we worked to promote compliance and raise awareness of ANA Group Code of Conduct the importance of observing corporate booklet ethics.

■ Internal Reporting System

In accordance with the provisions of the available our Help Line to business part- Whistleblower Protection Act enacted ners, as the said Act also applies to on April 1, 2006, we established reg- contracted labor. Independent from the ulations concerning the handling of corporation, the Help Line advocates internal reporting and disseminated fairness and provides a self-cleansing them throughout the ANA Group. On function for the ANA Group. June 1 of the same year we made

■ Compliance Program

The Compliance Program (CP), formu- ted to the Ministry of Economy, Trade lated in view of strengthened export and Industry in July 2006. security controls in Japan, was submit-

22 CSR Report 2007 Internal Auditing

At the ANA Group, internal ■ Enhancing Corporate Value auditing for ANA and its subsidiaries are raising the The objective of the internal audit is legality, rationality and corporate ethics. effectiveness of corporate to help enhance the ANA Group’s cor- It also endeavors to maintain corporate governance. porate value. To this end, the division assets and improve management efﬁ - assesses the administrative and opera- ciency by providing information based tional systems of all management activ- on the audit results, and by offering ities, as well as implementation status recommendations for improvement. of operations from the standpoints of

■ Over 60 Audits Per Year

The Internal Audit Division, which subjects being audited once every three reports directly to the president, imple- years. ments operational and account audit- Auditing results are reported to the ing for ANA and its subsidiaries. Each president each month, and important year, more than 60 audits are per- items are reported to the corporate formed on ANA ofﬁ ces and Group auditors quarterly. companies, with approximately 180

■ Implementation Status

In FY2006, the Internal Audit Division conducted internal audits of approx- emphasized accounting-related mat- imately 70 ANA offi ces and Group ters, quality control, observance of companies, focusing on operation- and laws and regulations, and security sales-related offi ces and Group compa- of personal information. The division nies and on overseas offi ces in China.

Compliance Education The ANA Group holds compliance-related education during training of new recruits and newly appointed management-level employees to raise their awareness of compliance. In addition, we hold regular training for CSR Promotion Ofﬁ cers and CSR Promotion Leaders, as well as speciﬁ c compliance training for executives.

Compliance training for executives

CSR Report 2007 23 Safety Report

Third-Party Opinions on Safety The ANA Group Safety Advisory Panel

The ANA Group Safety Advisory Panel, held in 2006, aims to include in our safety measures advice from knowledgeable third-parties regarding our systems and approaches to safety.

Valuable Comments 2. Thorough implementation of 3. Collection of safety-related Six eminent persons from diverse safety principles information ﬁ elds including manufacturing, trans- The most important thing is for top Collecting safety-related information is portation, medicine and academia pro- management to take a strong interest emphasized at many companies not vided the following valuable comments in safety. And this should be visible to only as a preventative measure but during the four sessions held in employees, who will then see that the also to strengthen the corporate cul- FY2006. necessary resources are being allocated. Face-to-face exchanges between top 1. Overall safety structure management and frontline employees Organizational structures consisting of are effective. Those in middle manage- an implementation section and comment should have a full understanding pany-wide safety promotion section, of safety and be able to accurately such as ours, are common. In this case, communicate management plans to safety and quality are generated at the subordinates. production stage, and the implementation section tends to have more power. Inspection at Airframe Maintenance Center Top management should give the safety promotion section more authority to check the implementation section so that the latter will not fall into section- alism and the former will be positioned higher in the company.

Operation Control Center

24 CSR Report 2007 send a positive message to employees. safety information; (4) hold human Building a safety culture takes time and error education continuously for oper- requires continuous improvements. In ating sections while expanding it to major industries the levels of safety and other sections; and (5) use the ANA quality are already high, and there is Group Safety Education Center for all no instantly effective measure to fur- Group employees and study how to ther improve them. For this reason the better gauge the retention rate. steady implementation and reﬁ nement While the panel favorably evaluated of measures is very important. approach to safety taken by the ANA Group, which has not experienced accidents resulting in fatalities for more Incorporating the Comments than 35 years, they did comment that Based on these comments from the further efforts are necessary to cement ture. The notion that repeating the distinguished members, future ANA safety as one of the ANA Group’s core same mistake is a huge problem must Group will: (1) strengthen the functions values. be instilled. The reporting of mistakes of the Corporate Safety & Audit Divi- The ANA Group has formulated should be forthcoming without fail, sion; (2) hold direct talks continuously, speciﬁ c action plans for each of the whistleblowers should not be penal- and enhance the Safety Top Caravan; above points and already started to ized, and organizational measures to (3) further facilitate the reporting of implement them. prevent recurrences should be taken not only locally but at other sections as well.

4. Measures against human error ANA Must Create Its Own Safety There is no quick fi x for human —Yuki Shuto, panel member error. Various approaches need to Director, Research Institute for Social Safety In the study of human factors, my specialty, there are many issues be taken continuously. And although common to other technological fi elds, so it is not unusual to proceed human error can never be eliminated in a cross-sectional manner. Still, I was a little concerned whether entirely, ANA’s current education and the discussion would work with participants from such diverse training can greatly reduce its likeli- backgrounds. hood. Improving facilities and infra- Once the conference began, however, I realized that my concern was utterly groundless. structure can also help lessen the There were many common points for safety: for instance, that top management’s attitude is important; that safety sections must be given a fi rm budget and authority; and that safety possibility of human error. principles must be expressed in words chosen with utmost attention and care. Of course, airlines are a bit different. While examples from other industries are helpful, they 5. Creating a safety culture offer no panacea. I think it became clear that the ANA Group has to create its own methods Top management can create a superior while learning from the approaches being taken in other fi elds. Harsh comments to the effect safety culture by adhering to the cor- that ANA is quite lax were expressed as well. I hope that such discussions will help bring about enhanced safety efforts at the ANA Group. porate policy of prioritizing safety and by taking specifi c, earnest actions that

CSR Report 2007 25 Safety Perspective on Safety

To ensure maximum safety, the ■ ANA Group Safety Principles greatest challenge facing airlines, ANA has stipulated the ANA To ensure the reputation for security clearly asserting the ANA Group’s obliga- Group Safety Principles for all and reliability outlined in the ANA tions with regards to air transportation. members to raise awareness of Group Philosophy, the entire ANA In line with the Group’s safety cul- safety and ensure safe ﬂ ight Group must have a common recogni- ture, the philosophy deﬁ nes the three operations. tion of safety, the basis of air transpor- basic entities responsible for maintain- tation. ing and improving safety: companies, To this end we formulated the ANA organizations and individuals. Group Safety Principles, stipulating that Employees of the ANA Group prom- safety is our promise to the public and ise to stay humble in observing safety.

ANA Group Safety Principles Safety is our promise to the public and the foundation of our business. Safety is assured by an integrated management system and mutual respect. Safety is enhanced through individual performance and dedication.

Approach to Safety

The ANA Group has set up ■ Establishment of Safety Management System various organizations and systems to ensure a high level of safety. When revisions to the Civil Aviation We also established a Group Safety Law and other transport-related busi- Promotion Committee as our highest ness laws took effect in October 2006, decision-making body related to safety. it became mandatory for operators of The committee’s main tasks are to land-, water- and air-based transporta- communicate important safety-related tion to establish new approaches to cases within the ANA Group, to stip- * Safety Management System (SMS) is a documented safety. ulate safety-related policies and pro- process for managing risks that integrates operations and technical systems with the management Accordingly, the ANA Group created mote awareness, and, where needed, of fi nancial and human resources to ensure aviation the Safety Management Regulations, its to advise Group companies on safety safety or the safety of the public. Its main characteristics are that: top management is proactive in new top regulation on safety, and a issues. In addition, given that the law safety approaches, and safety is enforced organiza- powerful new post, that of Chief Safety now mandates a safety audit program, tionally; safety principles, policies and safety-related information are extensively shared; risk is systemati- Offi cer, to manage the SMS*. Chair- something that we had implemented cally identifi ed, analyzed and evaluated, with steps men of the Safety Promotion Commit- voluntarily until now, we are stepping taken according to the degree of risk; and the tees of each airline in the Group have system is continuously improved. These ideas are up our auditing system and bolstering heavily refl ected in the standards of IATA and ICAO. been appointed to the position. our overall approach to safety.

26 CSR Report 2007 ■ Operations Report (OR) Meetings ■ ECHO—Voluntary Safety Report System When it comes to safety, we consider it directors of relevant divisions. The crucial for top management to exercise top management members themselves Approximately seventy percent of all leadership directly on the frontline. To meet at the airport to hear ﬁ rsthand aviation accidents are caused by human this end, OR meetings are held once reports on the operational status and error, it is said, and could be prevented a week at Haneda Airport in Tokyo study the issues. by analyzing the causes of even the to share information and review opera- Immediately after discussion in the most minor irregularities. tional reports on taking prompt mea- OR meetings, the heads of all relevant Experience Can Help Others (ECHO) sures and improvements, attended by divisions and those in charge at Group is a program for cockpit crew to share the president, vice-presidents and the companies meet for detailed studies. experiences that could have resulted in an incident. It was developed in 1991 and is now used by all airlines in the ■ SAFER—Watchdogs of Safety Group. ECHO collects reports on cases of Revisions to the Civil Aviation Law that on ISO9000 standards verify that the misjudgment, misinterpretation, faulty took effect in October 2006 oblige all ANA Group meets safety standards, procedure and other errors, as well as airlines to operate an internal safety not only in Japan but overseas, directly experience with hazardous elements. audit. The ANA Group had already reporting to top management to rectify This information is then shared with launched SAFER* in FY2001, and in any lapses. More than just “watch- other crews to heighten safety. To FY2007 we are aiming at a higher-qual- dogs,” they not only identify risks but encourage input from everyone, ECHO ity audit, having established a Group- also offer solutions where needed. With assures the anonymity of its sources. wide training system for auditors. this win-win relationship, coupled with Information collected is reviewed SAFER* is responsible for C (check concerted vigilance on the part of all monthly by the ECHO committee, function) in the Plan-Do-Check-Act employees, we are conﬁ dent that safety made up of cockpit crew members, and (PDCA) cycle of the Safety Manage- will be maximized throughout our oper- published in the internal ECHO journal ment System. Auditors possessing spe- ations. (published six or seven times a year and cialized knowledge and training based * Safety Evaluation and Review program now in its 100th issue), which is distributed to all cockpit crew. The journal also suggests measures aimed at preventing incidents and accidents. Conceptual Diagram of Continuous Improvement of SMS

Customer expectations Management Statutory requirements, etc. Safety Principles, Safety goal, review by management

Operation Continuous Air transport through such duties as flight operation, Improvement maintenance, airport and cargo services

Practical Approach to Examples of Human Error Provision of safe transport Human Factors Understanding and Improving Safety-Related Issues Recurrence prevention activities Occurrence prevention activities Satisfying customer expectations Internal safety audit

CSR Report 2007 27 Safety Approach to Safety

■ IOSA Compliance Renewed

IOSA*1, which ANA was the fi rst airline Currently, 165 airlines worldwide in Japan to adopt, is an internationally are registered under IOSA, which is a acknowledged safety audit program. requirement to join IATA*2, and this Elsewhere in the ANA Group, Air number is expected to grow. IOSA Nippon was audited during FY2006 membership signifi es that an airline and is now certifi ed. Other Group air- meets international safety standards, lines are also implementing internal and as such can help reassure passen- safety audits in compliance with IOSA gers around the world. standards. *1 IATA Operational Safety Audit *2 International Air Transport Association

IOSA certiﬁ cation

■ ANA FOQA Program for Raising Quality

The ANA Flight Operational Quality Through the Program, cockpit crew promptly. The Program helps to main- Assurance (FOQA) Program enables the and associated divisions are given feed- tain and promote fl ight safety while review of all fl ights at all times, based back on points identifi ed as requiring improving operational quality. on the analysis and assessment of fl ight improvement with respect to opera- record data. tional quality, in order to respond

■ STEP—Safety Tips from Experience

ANA’s Infl ight Division has a system called Safety Tips from Experience (STEP) in which safety-related issues that might lead to incidents are reported and remedied. The system has been introduced to each airline in the ANA Group. The number of reports is increasing each year, helped by efforts to focus on its importance and also through the recognition of a support system to ensure that such reporting is not taken personally. Based on STEP’s original aim to prevent unsafe incidents by making use of past examples, we are further refi ning the system by editing criteria on the report form and by allowing digital submissions as well. Pre-fl ight briefi ng These steps should encourage more voluntary reporting of cases thought to be caused by human error.

28 CSR Report 2007 ■ LOSA—Monitoring Flights for Safety

Human error is a fact of life, and air- Internal monitors trained at TLC, lines around the world are working on working with TLC’s own monitors, col- proactive methods to best deal with the lected data from approximately 300 problem. fl ights and reported the results to us in One such method is LOSA*1, devel- March 2007. We are presently studying oped in the 1990s at the University these results to develop new ways to of Texas with support from the FAA*2, ensure fl ight safety. which records and analyzes fl ight crew *1 Line Operations Safety Audit errors during fl ights. ANA was the fi rst *2 Federal Aviation Administration *3 The LOSA Collaborative airline in Japan to adopt LOSA, signing Monitor training conducted by TLC a contract with TLC*3, its administering authority, in 2006.

ANA Catering Service—Safety and Quality

In 1997, ANA Catering Service (ANAC) began has increased in recent years, so have ANAC’s introducing an advanced food safety man- measures. By adopting the latest safety and agement system called HACCP*1, which was security standards, the company has consis- fully implemented the following year. In addi- tently received the highest hygiene and quality tion to enhancing facilities, HACCP has helped ratings from one of the most prestigious audi- to maximize awareness of hygiene among tors*2 in the industry. employees. ANAC provides thorough hygiene training *1 HACCP (Hazard Analysis and Critical Control Point) to all its employees, from offi ce staff to those is a management method to ensure food safety by monitoring critical control points for factors that might at the front line. Each understands the need adversely impact the food production process. Infl ight meals are prepared with utmost quality assurance. to maintain strict temperature control and prevent cross-contamination at every stage of the *2 Medina International Incorporated. Audits caterers for airlines. In the over 25 years since its founding in catering process—from the procurement of September 1980, the company has conducted more ingredients to cooking, arrangement and air- than 10,000 audits on 150 facilities, 109 airports and craft loading. The safety of in-fl ight meals is 78 caterers. ANA concluded a contract in June 2007 thus assured through full quality control. for the auditing of its caterers. While public concern about food safety

CSR Report 2007 29 Safety Approach to Safety

■ Safety–Related Occurrences

The ANA Group experienced one avia- Aviation Accident Railway Accidents Investigation Com- tion accident*1 and two serious inci- 1. Accident Outline mission, the malfunction is believed to dents*2 in FY2006. We offer our On March 13, 2007, Flight 1603 have been caused by a missing bolt in deepest apologies to passengers and (Itami–Kochi, JA849A, Bombardier the assembly controlling the opening other affected parties. While we have DHC-8-402) was preparing to land at of the nose landing gear compartment; taken measures in response to each Kochi Ryoma Airport when its nose the bushing (metal sleeve around the incident, their exact cause is still landing gear failed to extend. Alter- bolt) came unseated and struck the being investigated by the Aircraft and native procedure was attempted, but mechanism inside the nose landing Railway Accidents Investigation Com- in vain. The plane, carrying 56 passen- gear compartment, interfering with the mission; upon receiving the results we gers and four crewmembers, was thus operation of the door by both normal will take further appropriate measures forced to land with its nose landing and alternative means. to prevent any recurrences. gear retracted. The aircraft sustained In addition, during the latter half damage to its fuselage; there were no 3. Measures of FY2006 we experienced 112 events injuries. We held an emergency inspection (safety-related occurrences), the report- based on a technical circular directive ing of which is now mandated by a 2. Preliminary Cause issued by Japan’s Civil Aviation Bureau. revision to the Civil Aviation Law that While the cause of the accident is still The following additional precautionary took effect in October 2006. under investigation by the Aircraft and measures were taken for all Bombardier Details of each event are available on the Safety Report (Japanese) at our Bombardier DHC-8 Inspections website’s Safety & Flight Data section. Checked points URL http://www.ana.co.jp/ana-info/ana/lounge

*1 Article 76 of Japan’s Civil Aviation Law deﬁ nes Around the control aircraft accidents as any crash or collision of or ﬁ re column within an aircraft as well as the following results of such accidents: property damage outside the aircraft Mechanical contact area in Rod linkage Electrical contacts or injury or death; death within the aircraft (exclud- lower part of ing natural causes); aircraft damage sustained while control column airborne; or missing persons.

*2 Serious incidents refer to those recognized as potentially causing aviation accidents as deﬁ ned in Article 76-2 of Japan’s Civil Aviation Law; 14 sce- narios including runway infractions are stipulated in Article 166-4 of the Enforcement Regulations of Installation status of control cable Japan’s Civil Aviation Law. Installation status of high-lift device and pulley drive mechanism

Installation status of An example of installed high-lift device bolts, nuts and cotter pins

30 CSR Report 2007 DHC-8 aircraft owned by the ANA Serious Incident Group: Serious Incident 1 Serious Incident 2 • Replaced all cotter pins on bolts in the 1. Incident Outline 1. Incident Outline door opening mechanism; On July 5, 2006, Flight 2142 (Fuku- On November 20, 2006 on Flight • Replaced the equivalent bolts to the oka–Narita, JA8419, Boeing 737-500) 729 (Sendai–New Chitose/Sapporo, missing one; made an emergency descent after it JA8596, Boeing 737-500), fi re-extin- • Examined bolts in similar mechanisms became unable to maintain cabin pres- guishers were triggered by the fi re in the main landing gear; sure during cruise. Oxygen masks in the alarm upon activation of the auxiliary • Established daily operational checks cabin were automatically released during power unit after landing at New Chi- of the compartment doors of both the descent, and the plane, carrying 41 tose Airport. The control tower advised the nose and main landing gears, as passengers and fi ve crewmembers, later that no fl ames had been detected, and well as of bolts in the mechanism of landed safely at Nagoya (Chubu). There the aircraft, carrying 53 passengers and the nose landing gear. were no injuries. fi ve crewmembers, taxied as usual to its gate. There were no injuries. Further, we formulated a “special inspection” program for key items 2. Cause 2. Cause selected from the list of our regular Under investigation by the Aircraft and Under investigation by the Aircraft and heavy maintenance check for landing Railway Accidents Investigation Com- Railway Accidents Investigation Com- gear and control devices, and commission of the Ministry of Land, Infra- mission of the Ministry of Land, Infra- pleted inspections of all Bombardier air- structure and Transport structure and Transport craft in operation by the end of April 2007. 3. Measures 3. Measures Given that our investigation traced the As the clamp attaching the auxiliary cause to worn parts in the air-condi- power unit’s duct was damaged, such tioning system, our measures include clamps were replaced on the auxiliary better time management for checks power units of all Boeing 737-500 and mandatory replacement of the sub- aircraft. Upon offi cial announcement ject parts on Boeing 737-500 aircraft. of the investigation results by the Upon offi cial announcement of the Aircraft and Railway Accidents Inves- investigation results by the Aircraft and tigation Commission, we will take addi- Railway Accidents Investigation Com- tional measures as required. mission, we will take additional mea- Bombardier DHC-8-400 sures as required.

CSR Report 2007 31 Finances環境 Report

Airline of the Year 2007

Airline of the Year 2007 shield Award ceremony

In February 2007, ANA was named One of the Industry’s Most Presti- “Airline of the Year 2007” by Air gious Awards Transport World. Here we report Air Transport World, a monthly mag- the basis for ANA having received azine for the civil aviation industry this honor. founded in 1964, has been recognizing airlines with outstanding performance every year since 1974. “Airline of the Airlines and Japan Air System, and Year” is one of the most prestigious by overcoming such factors as SARS awards in the industry. (severe acute respiratory syndrome), rising fuel costs and low load factor on ANA—the Airline Leading the its China routes. World 2. Persistent Safety Efforts The reasons for our receiving the award ANA is making ongoing efforts to were as follows: ensure safety by adopting LOSA and 1. Excellent Overall Performance through its program of monitoring daily ANA has achieved excellent perfor- ﬂ ight operations. mance by implementing bold cost- 3. On-Time, Quality Service structure reforms, by coping with ANA has continued to provide high- structural changes in the Japan market quality ﬂ ight operations including an brought about by the merger of Japan excellent record of on-time departures. ANA Lounge at Narita Airport recieved a G-Mark, Good Design Award

32 CSR Report 2007 Cover of Air Transport World

4. Profi tability of International the next-generation Boeing 787, with as number one in the world in these Operations which it has been involved since the important areas. ANA has returned international oper- development stages. ations to profi tability by investing 8. Preparations for Haneda Airport Offering Dreams and Experiences management resources in international Expansion At the grand award ceremony held passenger and cargo operations, and by ANA has sped up the retirement of its at the Marriott Wardman Park Hotel, closely collaborating with Star Alliance Boeing 747-400s, replacing them with Washington, D.C. on February 21, member airlines. the more effi cient 777-300s. Further, 2007, then-Executive Vice President 5. Use of Latest Information ANA is preparing to expand cargo oper- Katsuhiko Kitabayashi of ANA received Technology ations, its third core business. the “Airline of the Year 2007” from ANA is providing cutting-edge passenger Air Transport World Chief Editor Perry services making full use of information ANA is very proud to have received Flint. Over 300 representatives from the technology, such as the 126 automated this wonderful assessment ranking us industry and press attended. check-in machines at the South Wing of Everyone at ANA is deeply honored Narita Airport’s Terminal 1. to have received this globally recog- 6. Cutting-edge Cabin Facilities nized award on the 21st year since ANA has developed and introduced launching international service. We superior cabin amenities, as seen in its thank all our stakeholders for their con- New First Class Seat, New Style Club tinuous support. This award will inspire ANA (business class), and ANA Busi- us to strive even harder in our quest nessJet, an all-business class fl ight. to become an airline that offers dreams 7. Purchase of Boeing 787 and experiences to people around the ANA is the launch customer for world. Automated check-in machines at Narita Airport

Operating Income (Loss) & Operating Income (Loss) Margin

(billions of Yen) % 100 88.8 92.1 10 80 77.7 8

60 6.5 6.2 6 6.0 40 34.3 4

20 2.8 2 -2.5 0 0 -20 -0.2 -1 2002 20032004 2005 2006 FY Operating Income (Loss) Operating Income (Loss) Margin

New First Class Seat

CSR Report 2007 33 Finances環境 ANA Group Mid-Term Corporate Strategy (FY2006–FY2009)

In preparation for the era of ■ Objectives of ANA Group Mid-Term Corporate Strategy (FY2006–FY2009) intensifi ed competition expected following the expansion of Positioning this mid-term strategy as of international passenger and cargo Haneda Airport in October 2010, our full-fl edged preparation period for operations. To strengthen our corporate we are promoting the ANA Group the expansion of Haneda Airport in constitution against fl uctuations in rev- Mid-Term Corporate Strategy October 2010 and the ensuing “big enue, we are steadily implementing (FY2006–FY2009). This plan aims bang,” we will heavily invest resources cost-structure reforms and fl eet strat- to fortify us against any changes not only in domestic passenger oper- egy to ensure profi tability in the event in the business environment ations but also in the growth areas of higher fuel prices. including higher fuel prices. By FY2009 we aim to become the number one airline in Asia in terms of value creation, quality ■ Outline of Strategy and customer satisfaction.

ANA Brand Concept Safety, Quality and Customer systems of comparison with foreign air-

ANA Brand Vision Satisfaction lines, centered on those in Asia, as well "Creating Personal and Human Our goal is to have the best safety- as a new customer satisfaction survey Experiences with Our Customers" Our Customers management system in the world. We targeted at foreign passengers. These will do this by promoting a corporate measures will aid us in our goal to culture that focuses on safety through- become the number one in Asia in Communication out the entire ANA Group. This means terms of customer satisfaction. that each Group airline will use the same standardized systems and thus Five Strategies for Managing Value ANA enjoy the same high level of safety. Creation The ANA Character In terms of quality and customer Domestic passenger operation “Anshin, Attaka, Akaruku-Genki! (Reliable, Warm, Enthusiastic!)” satisfaction, we will combine our per- strategy sonalized service that values feedback We will improve the convenience with excellent airport and amenities of connections, optimize the supply/ cabin to truly be the airline described by demand balance and revenue man- our catchphrase, “Anshin, Attaka, Aka- agement, and aim for stable revenue Mind and Spirit CS Minded, ruku-Genki! (Reliable, Warm, Enthu- growth. We will work to cement the Frontier Spirit, Team Spirit siastic!)” In FY2006 we established competitiveness of our products such

ANA Group Mid-Term Corporate Strategy (FY2006–FY2009)

■ Group Corporate Vision No.1 in Asia! Achieve Corporate Vision To become the number one airline in Asia in terms of value creation, quality and customer satisfaction. Within range of No.1 in Asia ■ Key Strategies

International Passenger Operations Increase value Increase profits through an expanded network FY2009 Domestic Passenger Operations Shift to value-creation FY2008 Strengthen Group operations; Advance management differentiation strategy FY2007

Cargo Operations FY2006 Expand scale of operations to strengthen foundation Operating Improve Cost Structure ¥76 billion Shift to corporate constitution less susceptible to income ¥79 billion ¥90 billion ¥100 billion goal (¥92.1 billion achieved) economic fluctuations

34 CSR Report 2007 as Super Seat Premium, new economy strategy, we will establish Japan-China, infrastructure such as lounges, check-in class seats, total transport strategy and Japan-North America, and Japan-Asia counters and IT systems. As Haneda Air- e-commerce and develop other attrac- networks utilizing Kansai or Nagoya port becomes internationalized, we will tive products that meet customer needs. (Chubu) airports. Moreover, we will make best use of Star Alliance resources establish a network connecting domes- to secure our competitiveness. International passenger operation tic and international fl ights from strategy Haneda Airport by the end of FY2008, Cost structure reform—fl eet strat- We will specialize in the business pas- paving the way for a Haneda-based egy and cost reductions senger market, reinforce our transport freighter network after FY2009. We will Cost competitiveness will be strength- capacity at the hub airports of Star Alli- expand our freighter business through ened by standardizing on new, cost-effi - ance partners, and enhance our net- a tie-up with Japan Post and by estab- cient Boeing 737-700s and Boeing 787s, work in each region of North America, lishing a new freighter company geared and by retiring the Boeing 747-400s. Europe, China and Asia. By deploying to the internationalization of Haneda Cost reductions include sale of hotel mainly narrow-body aircraft such as the Airport, which will contribute to achiev- operations in June 2007. Airbus 320 and Boeing 737-700 on ing the ANA Group profi t objective. By FY2007, indirect fi xed costs will higher-frequency China and Asia routes be reduced by ¥10 billion through and by optimizing demand and supply, Alliance strategy a reduced indirect workforce, reduced we will strengthen our competitiveness. June 2006 saw the relocating of ten rental space, review of advertising, At Narita Airport, we will enhance Star Alliance member airlines “under rationalization of IT costs, and so on. connections with Star Alliance member one roof” at Narita Airport’s Terminal 1. By FY2009, direct fi xed costs shall be airlines, while at Haneda Airport, we In the future we will work to improve reduced by ¥10 billion through improved will prepare for international operations connections among ANA’s Asian and productivity, reduced fuel consumption based on demand in the Tokyo met- Western partners, as well as customer and lower outsourcing costs. ropolitan area and on domestic con- convenience through shared use of nections. Further, we will promote our Star Alliance member airlines deployment of the Boeing 737-700ER, the fi rst in the world, as a strategic * aircraft for mid- and long-haul interna- * tional routes. *

Cargo operation strategy *Scheduled to join To strengthen cargo operations, one of the three pillars supporting our growth

Cost Structure Reform

Introduction of highly economical aircraft ■ Numerical Targets ■ Fleet Strategy Standardization of aircraft models

Upon completion of fleet FY2006 standardization By promoting each strategy, in which B747-400 New wide-body aircraft we pursue higher proﬁ tability by reduc- B777-300 (to be determined) ing costs while optimizing our ﬂ eet, we B777-200 aim to achieve operating revenues of

Boeing 787 (generated image) © Boeing ¥1,550 billion and operating income of B767-300 New mid-sized aircraft Boeing 787 ¥100 billion by FY2009. A321-100 ■ Reduction of Indirect Costs (reduction of ¥10 billion by FY2007) Decrease indirect workforce, reduce rental space, streamline A320-200 advertising, rationalize IT costs, etc. New narrow-body ■ Saving of Direct Costs (reduction of ¥10 billion by B737-400 aircraft FY2009) Boeing 737-700 Improve productivity, reduce fuel consumption, reduce outsourcing B737-500 costs, etc.

CSR Report 2007 35 Finances環境 Financial Relations with Stakeholders

The ANA Group has various ■ Distribution of Economic Value ﬁ nancial relations with our stakeholders, which include The ANA Group provides high-quality We pay expenses to our business part- customers, business partners, air transportation services—domestic ners from operating revenues and dis- shareholders, creditors, passenger operations, international tribute generated economic value to employees, communities and passenger operations and cargo and various stakeholders including employ- public authorities. mail operations—as well as services in ees, shareholders, public authorities the travel industry and other sectors. and communities.

■ FY2006 Economic Value

Revenues from customers amounted ations increased by 11.0% over the to ¥1,489.6 billion, an 8.8% increase previous year to ¥1,164.5 billion. over the previous year. Other revenues Other expenses and losses decreased by 58.5% to ¥15.6 billion. decreased by 27.6% to ¥39.1 billion. Due to higher fuel costs and other fac- As a result, the FY2006 economic value tors, payments in the course of oper- decreased by 0.4% from FY2005 to ¥301.7 billion. ANA Group Financial Relations with Stakeholders

Customers Improvement of safety and convenience, Domestic passengers service operating revenue consideration for the environment International passengers service operating revenue Cargo and mail operating revenue, etc.

Business partners Employees Payment required in operations Wages, etc. Communities

Public Authorities Donations, etc.

Tax, Airport usage fees, etc. Creditors

Interest expenses, etc. Shareholders

Dividends, etc. Board members

Compensation & bonus, etc.

Retained earnings Capital investment

Fleet renewal, etc.

FY2006 Economic Value (1) Revenues from customers: operating revenue FY (2) Other revenues: sum of non-operating revenue 1,489.6 15.6 and extraordinary gains 2006 (3) Payment required in operations: operating expenses and sales, 1,164.5 301.7 general & administrative expenses – personnel costs and 39.1 donations (4) Other expenses and losses: sum of non-operating expenses 1,368.7 37.7 and extraordinary losses 2005 1,049.5 303.0 (5) Economic value: (1 + 2) – (3 + 4) 53.9

0 200 400 600 800 1,000 1,200 1,400 1,600 (billions of yen) Revenues from customers Other revenues Payments required in operations Other expenses and losses Economic value

36 CSR Report 2007 Communication with Shareholders and Investors

As of March 31, 2007, ANA has ■ Communication with Individual Shareholders and Investors approximately two billion shares outstanding, held by over 270,000 We actively communicate with individual and answered many questions. shareholders. Providing return to shareholders and investers, who account Complimentary Goods for these shareholders is an important for over 40% of our shareholders. Shareholders task of management. We divide General Shareholders Meeting Domestic fl ight discount coupons and earnings properly based on our Our ordinary general meeting of share- various complimentary goods from managerial environment and holders is an important opportunity for Group companies are offered to share- performance, and aim to raise direct communication. A record-high holders as a token of our thanks. shareholder value by building 3,093 shareholders attended this meet- Commendation for Increasing a business structure capable of ing in 2007, many of whom voiced Shareholders steady profi ts regardless of comments and questions. In January 2007, our efforts aimed fl uctuations in the industry. Briefi ngs for Individual Investors at increasing our number of individual We expanded our activities by participat- shareholders, and thereby expanding ing in the Tokyo Stock Exchange’s Disclo- the market base for securities, were sure Fair and held briefi ngs for individual commended by the Tokyo Stock investors. Here, we explained in detail Exchange (TSE). Shareholder Equity and Equity Ratio our business outline and corporate plans billions of yen % 400 398.2 40 346.3 300 30 ■ Communication with Institutional Investors in Japan and Overseas 214.2 24.9 200 20 20.8 100 13.3 10 IR Activities in Japan IR Activities Overseas 0 0 After announcing each quarter’s fi nan- We visit major investors in Europe, the 2005/32006/3 2007/3 Shareholder Equity Equity Ratio cials, we hold meetings and conference United States and Asia to further their calls where top management makes pre- understanding of ANA. In addition, we Breakdown of Shareholders sentations to analysts and institutional actively participate in overseas confer- investors. Materials used in these presen- ences hosted by securities companies.

● Financial institutions 25.78% tations can be viewed on our website. ● Security companies 1.93% URL ● Other corporations 21.32% http://www.ana.co.jp/eng/aboutana/corporate/ir ● Foreign corporations 8.24%

● Individuals & others 42.67%

● Government & local public organizations 0.06% ■ Prompt and Accurate Disclosure of Management Information

Website We post important management information at the time of its announcement and have worked to ensure that ﬁ nancial information is posted in a timely manner. On our English site, we Annual Report and Fact Book increased the volume of information by

including stock data and back issues. ANA VISION URL http://www.ana.co.jp/eng/aboutana/corporate/ir published annually to give a detailed Publications picture of our ﬁ nances and manage- We publish ANA VISION for our indi- ment plan. Last year, our Annual Report vidual shareholders on a quarterly basis. won a prize at the 2006 Nikkei Annual TSE commendation for increasing individual shareholders Our Annual Report and Fact Book are Report Awards.

CSR Report 2007 37 Society Report

Quality Management of Products and Services

The ANA Group has established a special management system to improve the quality of its products and services. The system monitors all quality, reviewing and implementing measures for improvement, and even extends to customer feedback, which we call the Closed Loop.

Over 20,000 Customer Comment duced 20,620 such reports. These are Reports stored in a database on our intranet Each day, the ANA Group operates where they can be referenced by autho- some 900 domestic and international rised personnel to solve problems and fl ights carrying more than 120,000 pas- improve quality. sengers. We have extensive interaction with customers for the duration of their Refl ecting Customer Feedback fl ight, from reservations and boarding Through a “Closed Loop” to in-fl ight services. We therefore have Based on our Course of Action (“Be many opportunities to hear from our customer-oriented”), the ANA Group customers. Comments from customers studies all quality-related issues voiced regarding our products and services are by our customers and attempts to Takashi Ono, CS Promotion Division received by our Customer Desk via resolve them. telephone, e-mail and post and com- The cycle of collecting and analyz- piled into reports. In FY2006, we pro- ing comments from customers and staff

Quality Management of Products and Services

Defining Product & Service Quality Providing Products to Customers

Evaluation of Quality (Selection of Problems)

Customer Satisfaction Survey Quality Check Closed Loop Calculation of total quality score Self check Analysis of feedback from Star Alliance survey Monitoring survey customers & employees Reports from service frontline

Formulation & Implementation of Improvement Measures

CS Promotion Improvement activities at each Committee Ad hoc subcommittees division and office

Customer Desk staff responds to inquiries from customers.

38 CSR Report 2007 Maximizing Customer Feedback (Closed Loop)

A scheme to systematically collect and analyze customer and staff comments and make use of them in improving and planning products and services. Comments received directly from customers and problems noted by frontline staff are systematically reported. We aim to be a Group company that responds dynamically to ever-changing Report customer needs and effects continuous improvements. Collection of Feedback

Mai Azuma, Passenger Services, guiding a customer at Haneda Airport Solutions are formulated and implemented at each division and department, or through ad-hoc subcommittees. Important issues are tabled at Customer Feedback CS Promotion Committee meetings. FY The Closed Loop 2006 3,140 12,438 3,931 1,111 Action Be customer-oriented Formulation 2005 2,800 11,751 3,630 962 & Implementation 2004 2,464 9,625 3,147 978 of Improvement Measures 0 5,000 10,000 15,000 20,000 25,000 Compliment Complaint Comment/Request Other Analysis Breakdown of Compliments (FY2006) Selection & Analysis of Issues ● Cabin attendants 52.8% ● Ticketing/check-in 11.8%

● Problem during flight 5.2% From among the many comments received ● Flight crew 5.0% from customers and staff, constructive ones ● Check-in to boarding 3.0% are selected and analyzed. ● Reservations Center 2.2%

● Special care at airport 2.1%

● Arrival area 1.9%

● Flight irregularity 1.8%

● Other 14.3% to solve problems and plan new prod- Being “customer oriented,” all ucts and services, known as a “Closed employees and executives truly recog- Breakdown of Complaints (FY2006) Loop,” ensures that we stay customer- nize the value of customer feedback. ● Ticketing/check-in 16.8% ● Cabin attendants 15.1% oriented. The “Closed Loop” helps not only to ● Flight irregularity 7.5% Problems that are faced by multiple resolve service issues but also to incul- ● Mileage Club-related 6.1% divisions, or those that cannot be cate in all staff a CS-oriented mentality. ● Reservations Center 5.9% ● Check-in to boarding 5.5% solved through ordinary channels, are ● Seats/cabin facility-related 3.7% ● Checked luggage accident, examined in the CS Promotion Com- “Customer Feedback“ page on our website loss 3.3% mittee composed of executive ofﬁ cers http://www.ana.co.jp/ana-info/blettine ● Inflight meals & drinks 2.7% (Currently available in Japanese only) from all divisions. Customers are ● Other 33.4% apprised of improvements resulting Breakdown of Comments/Requests (FY2006) from their feedback through Tsubasa ● Flight schedule 11.7% no Okoku (our Japanese-language in- ● Mileage Club-related 8.2% ● Entertainment, cabin ﬂ ight magazine) and through our web- equipment, inflight sales 7.9% site. ● Ticketing/check-in 7.6% ● Fares/tickets 6.4%

● Lounge 6.1%

● Seats/cabin facility-related 5.7%

● Inflight meal & drink 4.3%

● Check-in to boarding 3.9%

● Other 38.0%

CSR Report 2007 39 Society – Customers Raising Customer Satisfaction

The ANA Group holds customer ■ Customer Satisfaction Index satisfaction surveys to manage the quality of its products and The ANA Group holds customer satis- Since we began these surveys, our services. We are striving to raise faction surveys twice a year and moni- customer satisfaction index has steadily employee awareness of these tors its customer satisfaction index (CSI) improved. The ANA Group will con- indices and of customer regularly. The results are thoroughly ana- tinue to win customers’ hearts through satisfaction in general. lyzed by the CS Promotion Division as our unstinting efforts to improve qual- well as by each division and department ity and pursue the highest possible sat- to promote improvements in service. isfaction.

Domestic Flight CSI International Flight CSI

high high

low low

2001 2002 2003 2004 2005 2006 FY 2001 2002 2003 2004 2005 2006 FY

Bangkok Ofﬁ ce counter

Narita Airport check-in counter

Super Seat Premium

40 CSR Report 2007 ■ CS Awards

Every other month we choose from the and am currently living a normal daily letters, telephone calls and e-mails from life. Although I really would like to thank customers and share examples of “ANA each one of you in person, I hope that Group best practices” that lead to out- this message will help express my grati- standing service. tude. (Female)

Service Award Example Comments from the Service Awards “I became unwell during a fl ight and Committee: caused anxiety in those around me. We have learned that Mr. Murakami, I would like to take this opportunity who happened to be on this particular to extend my thanks.” fl ight on a business trip, played a big role in helping the customer. Between On fl ight 662 on January 31, 2007, the onset of the illness to transportation, I suddenly fell sick and collapsed. The he (1) arranged seats so that the ill cus- captain and members of the crew took tomer could lie down, and secured a great care of me and I am truly grateful. seatbelt on the customer to help ensure Award recipient’s comment: My memory of that day is not exactly safety; (2) supported the customer, in a Kazuhiko Murakami clear, but I do remember two things. semi-crouching position, for the entire Materials Management & Spares, Engineering & Maintenance The fi rst is that there were many people time from preparation for landing and This award is not for me personally but by my side, looking after me with con- actual landing; and (3) asked a customer for the entire crew on that fl ight. As cern. And the other is that a cabin atten- who’d tried to stand, despite announce- I am in the Engineering & Maintenance dant repeatedly said encouraging words ments for all passengers to remain division, where we do not usually come in my ear, things like “Everything will seated until medical transport has been in direct contact with customers, this be all right, we are right here.“ Thanks completed, to sit. Having learned of experience made me aware of the extreme to everyone’s help and encouragement, his numerous efforts, the committee importance and challenges of those on the frontline. I hope to continue contributing I have been able to regain my health decided that he deserved an award. to customer satisfaction by supporting fl ight operations and by providing safe, high-quality aircraft.

■ Delivering Customer Feedback to Employees—Pay Slip

ANA has been printing customer compli- Creating a Wonderful Experience with Customers ments on the cover of monthly pay slips —Anshin, Attaka, Akaruku-Genki! since October 2004. I use a cane because of my bad leg joints, and this makes This practice, proposed by employ- me troublesome when I board a plane. But today I was ees, was initiated to raise employee truly happy when I boarded. It was just a few words from a awareness of CS in an everyday way. It cabin attendant—”Slowly, slowly, take your time. Nobody’s behind you.” It gave me a sense of security, as I always is just one more step towards our brand felt I should probably be the last one to board. Today’s vision of “creating dreams and experi- experience made for a very enjoyable and heart-warming ences.” ﬂ ight. I think cabin attendants have a tough job, but with just a smile they can put us completely at ease. I was very grateful for your thoughtfulness.

Pay slip CSR Report 2007 41 Society – Customers CS Activities

The ANA Group is taking full ■ ANA Group Brand Vision advantage of customer feedback in its CS* activities to provide ever- There is nothing like a simple “thank key indicator of our brand’s power. better services. you” from a satisﬁ ed customer to make CS activities are therefore focused * Customer Satisfaction an employee’s day. The ANA Group on raising employee awareness and brand vision is to be known for such ensuring the quality of our products warm, personal experiences. In our and services based on customer feed- view, each employee who embraces back. this outlook increases our CS level—the

■ The ANA Character—Anshin, Attaka, Akaruku-Genki!

We believe that the best way to prevail mentality shared by all ANA Group against the competition is to establish employees. a distinctive character, one embodying Depicted graphically as a sunﬂ ower the ANA strengths and attributes that (the ANA Group) oriented toward cannot be imitated by other companies. the sun (our customers), our “Anshin, With this in mind, in December Attaka, Akaruku-genki!” character is 2004 we unveiled the slogan “Anshin, being impressed on customers through

CS website on the intranet Attaka, Akaruku-genki! (Reliable, a concerted, Group-wide campaign, Warm, Enthusiastic!)” to deﬁ ne the which we hope will help us become the ANA character, and “CS Minded, Fron- airline of choice. tier Spirit, Team Spirit” to describe the

Yumi Ishii (left) and Mai Yamaguchi (right), Customer Desk, CS Promotion ANA Brand Concept

ANA Brand Vision "Creating Personal and Human Experiences with Our Customers" Our Customers

Communication

ANA

The ANA Character “Anshin, Attaka, Akaruku-Genki! (Reliable, Warm, Enthusiastic!)”

Mind and Spirit CS Minded, Frontier Spirit, Team Spirit

42 CSR Report 2007 ■ Praising Fellow Workers—Good Job Card

For those on the frontline we have well; the scheme lets employees share “good job” cards, which are shared in their joy. By promoting pride in one’s among employees on the occasion of work and interest in that of others, the a job well done. The cards contain system also helps to boost employee messages of praise from customers as morale and motivation.

Good Job Card

■ Improving Operational Quality—Punctuality

Punctuality—departing and arriving at and, if cleared, serve as the basis for On-Time Departure Rate*

% the scheduled times—is of paramount new punctuality measures. 100 importance in the airline business. As In FY2006 we attained an on-time 95 part of our efforts to improve punc- departure rate of 94.0% for domestic 94.0 90 tuality, we have been implementing a service, and 85.7% for international 85.7 Group-wide project at airports in which service. This information is disclosed in 85 80 employees can submit ideas. These are the operational ﬂ ight data on our web- 01 02 03 0405 06 FY then checked for safety implications site. Domestic International URL http://www.ana.co.jp/eng/aboutana/flt_data/e/index_sm.html Flight Data *The share of total flights departing no more than 15 minutes behind schedule

■ Thorough Quality Control in the Cabin

The ANA Group is carrying out thor- ity-evaluation section verifi es infl ight ough measures to ensure a quality service—not only according to rating infl ight experience. Some 110 cabin standards, but also by taking into attendants have been appointed as account the perspective of passen- inspectors and report regularly on gers—resulting in thorough quality con- whether cabin quality meets offi cial trol of the cabin. ANA standards. Meanwhile, our qual-

CS Activities at Fukuoka Airport At Fukuoka Airport, 1,500 ANA Group employees are tack- ling CS activities under the activity theme “CS Revolution by 1,500—Creating Services from the Customer’s Perspec- tive.” Under the theme, “Working Toward Seamless Ser- vice,” employees from across the Group planned and carried out measures to make theirs the best possible airport. The ANA Group employees at Fukuoka Airport have consistently demonstrated excellent teamwork in aiming for better CS.

CSR Report 2007 43 Society – Customers Consideration for All Customers

Drawing on feedback from ■ ANA Sky Assist Desk customers, the ANA Group has been improving its facilities and The ANA Sky Assist services to ensure that all Desk ensures a relax- passengers enjoy comfortable, ing and pleasant pleasant ﬂ ights. ﬂ ight for challenged customers. Highly skilled staff will assist passengers, from reservation to disembarkation.

Number of Challenged Passengers The number of challenged passengers

Number of Passengers assisted in FY2006 was 122,906, up 130,000 122,906 4.1% from the previous ﬁ scal year. 120,000 118,048 URL 110,000 104,460 http://www.ana.co.jp/share/assist_eng/index.html 102,178 100,000 98,843 ANA Sky Assist

0 Yuka Nohara at Sky Assist Desk, CS Promotion Division 2002 2003 2004 2005 2006 FY

■ Promoting Barrier-free Airports and Aircraft Breakdown of Challenged Passengers (FY2006)

● Light-degree walking difficulty 40.1% At airports and in the cabin, the ANA to help physically challenged customers ● Medium-degree walking Group is promoting barrier-free access take their seats, and subtitles on difficulty 25.9%

● Wheelchair bound 14.7% for physically challenged passengers. certain in-ﬂ ight video programs. And ● Impaired hearing 10.8% Starting with making special writing in April 2006, new airport wheelchairs, ● Impaired vision 5.2%

● Illness or injury 1.6% pads available to customers with hear- designed based on customer feedback, ● Mental illness 1.3% ing disabilities at eight airports across were rolled out at 50 airports around ● Impaired vision requiring guide dog 0.2% Japan in 1998, we then provided cabin Japan. A comprehensive listing of the ● Cannot sit (must lie down) 0.1% wheelchairs on all domestic aircraft in ANA Group’s barrier-free services for 1999. Additional services were intro- the physically challenged can be found duced after the Transportation Barrier- on our website. Free Law came into effect, such as URL aircraft seats with movable armrests http://www.ana.co.jp/share/assist_eng/index.html New airport wheelchair and wheelchair-accessible restrooms in ANA Sky Assist the cabin. We also offer “assist seats”

Notes on Developing New Wheelchairs We have been developing wheelchairs for use at airports and inside cabins that are more user-friendly than existing ones. These wheelchairs have a combination of requirements particular to air travel. They should be easy to operate on inclined boarding bridges; pass comfortably through the aisles in the cabin; and allow the occupant to move from wheelchair to seat with a minimum of fuss. In assessing their usability and safety during development, we asked both the ANA Mr. Katsumi Hirooka Manager, Market Develop- Group and users for their opinions. ment Group, Matsushita When I ﬂ y and am told by staff things like, “They’re great because Electric Works, Ltd. they’re so easy to use,” or when I see customers actually using them, I feel happy that our wheelchairs are contributing to a more comfortable ﬂ ight.

44 CSR Report 2007 ■ Sign Language-Capable Cabin Attendants ■ ANA Rakunori (Easy Travel)

To better serve hearing-impaired pas- The ANA Rakunori Service is for passengers, ANA provides opportunities sengers requiring special assistance. for employees to learn sign language. “Senior Rakunori” provides all manner Approximately 400 cabin attendants of assistance for the elderly. “Family have been certifi ed with sign-language Rakunori” supports expectant mothers skills of Grade 4 or higher. The sign language badge and customers traveling with infants or worn by cabin attendants small children. “Kids Rakunori” helps children traveling alone, from departure Sign Language Study at International to arrival. And “Pet Rakunori” lets pas- Airport Utility (IAU) sengers enjoy trips with their pets. ANA Why shouldn’t the hearing-impaired enjoy air travel staff wearing this badge and stationed just like able-bodied passengers? The question was at airport Rakunori Counters are always raised during a morning meeting from a CS member ready to assist these passengers. of Passenger Services, and staff took it upon them- URL selves to begin learning sign language. Study ses- http://www.ana.co.jp/eng/int_svc/ rakunori/index.html sions took place during the group meetings held in ANA Rakunori (Easy Travel) Services IAU’s Passenger Services staff practice sign language. September and October 2006. Later, the group took the offi cial certifi cation examination for Grade 6, and 64 passed. Employees certifi ed for Grades 5 and 6 wear a “currently studying sign language” badge, while those certifi ed for Grade 4 or better wear a “sign language” badge.

■ Assistance by Certiﬁ ed Careﬁ tters

Airport staff members certifi ed as ■ AEDs on All Aircraft carefi tters assist elderly passengers and those requiring special assistance. Special badges are worn by these All ANA Group aircraft now have an staffers. AED*, a device that treats attacks of ventricular fi brillation caused by cardiac The carefi tter badge infarction. Cabin attendants trained in its operation are fully prepared for such ■ Universal Tourism emergencies. * Automated External Defi brillator ANA Sales has been pursuing an Number of Participants in ANA Hallo Tours

Number of Participants approach called “Universal Tourism” in 2,000 which anyone, regardless of disability 1,500 1,277 or age, can enjoy our overseas travel 1,019 1,000 992 package, ANA Hallo Tours. Some 630 701 562 500 532 630 people with disabilities participated in 515 0 364 296 these tours in FY2006. 2002 2003 2004 2005 2006 FY AED Physically challenged participants Accompanying participants

CSR Report 2007 45 Society – Communities Contributing to Communities and Society

The ANA Group prides itself on ■ Social Contribution Activities being a good corporate citizen and through various activities 45 Years of Cooperation with volunteers, mainly from ANA’s Suzuran maintains a close relationship with Red Feather Community Chest Club, collected donations in front of local communities. Since 1962, the ANA Group has been Omotesando Hills in Tokyo. supporting the Red Feather Community Chest fund-raising drive. On October Lily of the Valley 1, 2006 ANA Group cabin crew and On June 9, 2006, ANA Group cabin ground staff were given a goodwill crew and ground staff at airports visited message at the opening ceremony, 52 hospitals including Japanese Red which they then conveyed, together Cross Medical Centers to present in- with red feathers, to the governors and patients with 19,000 bookmarks con- mayors, chairmen of the regional com- taining pressed “lily of the valley” munity chest, and fund-raisers at 39 ﬂ owers. venues across Japan. In addition, 42 ANA Group employees made each bookmark using ﬂ owers picked near New Chitose Airport in Hokkaido. The tradition has been a great source of pleasure for patients every year since it began in 1956.

Donating Used PCs to Cambodia ANA Communications donates used computers to various educational institutions in Cambodia. The 200 used computers donated to date by ANA Communications were received with much joy and are being put to good use.

Volunteers from the Suzuran Club and others

Pressed “lily of the valley” Presenting pressed “lily of the valley” bookmarks Children learning computer skills on donated computers bookmarks

46 CSR Report 2007 ANA Group Social Contribution Activities in FY2006 Social Contribution Activities Examples

Relationship Our social contribution activities make use of our air trans- ･ logistical support in times of disaster (in Japan and overseas) with Society portation business and include: ･ logistical support for seeing-eye dogs (in Japan) ･ Red Feather Community Chest (in Japan) ･ distribution to patients of “lily-of-the-valley” flowers (in Japan)

Relationship We value our relationships with communities by supporting ･ Participation in local communities: Shikotsu Lake Hyoto Festival (Hokkaido, Japan); Sapporo Snow with Communities local festivals and sports events in Japan and overseas. Festival (Hokkaido, Japan); Isahaya Nonnoko Festival (Nagasaki, Japan); National Cherry Blossom Festival (Washington, D.C., U.S.A.)

･ Beijing International Marathon (Beijing, China) ･ Dalian International Marathon (Dalian, China) ･ Participation in sports events: ANA Cable Car Chase (San Francisco, U.S.A.);

･ Other: Cleaning of Taya Beach, Chita Peninsura (Aichi, Japan): Hawaii Food Bank Charity Event (Hawaii. U.S.A.); Noto Peninsula Earthquake Charity (Ishikawa, Japan)

Support of Youth The ANA Group supports youth by offering them various op- These include our Aviation Class (in Japan and overseas); airport and maintenance facility tour (in Ja- portunities for learning and enjoyment. pan and overseas); job-site experience class; invitation to company training; Kids Baseball Class (Los Angeles, U.S.A.); Children's Castle concerts (eight cities in Europe and the U.S.A.); donation of used PCs (Cambodia); and Captain Asada's Memorial Flight (Miyagi, Japan)

Art and Cultural We support art and cultural activities. ･ History Symposium (Okayama, Japan) Activities ･ Japanese Film Festival (New York, U.S.A.)

Asada’s Memorial Flight Carries Children’s Dreams

It All Began 43 Years Ago the bird back to its owner, talked to the sta- tion manager of Sendai Airport. Much to the On April 9, 1958, a carrier pigeon fl ew into children’s delight, a certain Captain Asada the National Tamaura Sanitarium near Sendai would undertake the task. And so, on April Airport. Inside were about 200 patients 12, 1958, his Douglas DC3 delivered the including many school-aged children. As the pigeon from Sendai to Tokyo. children were being taught by the adult It was the start of a great friendship patients, the sanitarium (predecessor of Nishi- between the captain and the bed school taga Hospital School) came to be known as children. Every year in June since then,he the “bed school.” has visited them with lily of the valley fl ow- 50-minute fl ight over Yamagata at an altitude That morning, the children found an unfa- ers, offering encouragement to children who of 3,600 meters. Peering down through the miliar stray pigeon among the fl ock they were were studying while receiving treatment. clouds at houses and cars and snow-tipped raising. The ring around its foot revealed that While maintaining his friendship with the mountaintops, the children’s faces were all the bird belonged to a man in Tokyo and children, Captain Asada began to wish that smiles. must have gotten lost during a pigeon race. he could do something more for them. After On that day, another charter fl ight was The children, desperately wanting to return repeated requests to ANA, his wish was held for Nishigata Hospital School. For the granted and on April 29, 1963, the children enjoyment of students who couldn’t come to were invited on an excursion fl ight. Four years the airport, we staged a mock fl ight almost later, Captain Asada passed away due to ill- like a real one with check-in, boarding and ness. infl ight service. These memorial fl ights were not without Captain Asada’s Wish Lives On diffi culty but succeeded thanks to the cooperation of more than 100 volunteers including But the story continues. On April 21, 2006, staff from the ANA Group. It was a wonder- an airplane carrying students from Nishigata ful reminder that, though times may have Hospital School again took off from Sendai changed, Captain Asada’s noble wish lives Airport. Twenty-six students enjoyed the on.

CSR Report 2007 47 Society – Next Generation Supporting the Next Generation

The ANA Group supports youth ■ Aviation Classes —the leaders of tomorrow—by providing various opportunities As part of our customer service activi- for education and self-development. ties, we hold aviation classes to educate the public about air safety. Elementary and junior high schools can refer to our website to request an aviation class in their areas. URL http://www.ana.co.jp/anafan/kids/index.html#school (Currently available in Japanese only) E-mail: [email protected] Aviation Class

■ Airline Business Lectures at Universities

The ANA Group sends personnel to sev- ANA, will launch an airline program in eral universities in Japan to lecture on April 2008—the beginning of a full- the airline business, tourism and the ﬂ edged industry-academia partnership. industry in general. Following the pilot- training program launched in collaboration with Tokai University in April 2006, we tied up with Waseda University’s Faculty of Science and Engineering in February 2007 to cooperate in the area of education and joint research. Furthermore, Kyoto Notre Dame University, with the full cooperation of ANA staff lecturing at college

■ The Okazaki Kaheita International Scholarship Foundation

To honor the wishes of Kaheita Oka- their home countries, while some are zaki, ANA’s second president, the continuing their studies in Japan. In Foundation was established in 1990 these ways they are strengthening ties to support personal development in between their countries and Japan. Asian countries. Every year the foundation awards Japan scholarships to several students from China, the Phil- ippines, Malaysia, Indonesia, Thailand and Myanmar, and offers support for graduate studies as well. The Foundation has helped a total of 76 students further their education. The graduates are now teachers, civil servants or private-sector employees in Scholars from Asian countries plant commemorative trees

48 CSR Report 2007 Society – Partners Relation with Business Partners

The ANA Group is practicing fair ■ ANA Group Purchasing/Transaction Guidelines trade in full compliance with Japan’s Antitrust Law and related Many of our products depend on ser- these partners fulﬁ lls our CSR based legislation based on the ANA vices, materials and items—from air- on guidelines set forth under the ANA Group Code of Conduct. And we craft and jet fuel to ofﬁ ce equipment Group Purchasing/Transaction Guide- are pursuing new value creation and cabin supplies—provided by busi- lines. with the cooperation of our ness partners. Our relationship with business partners.

ANA Group Purchasing/Transaction Guidelines Basic Policies for Purchasing/Transaction 1. In terms of purchase transactions, we shall fairly select and purchase the best goods and services based on economic rationality. 2. Our purchase transactions shall be open to suppliers worldwide, shall be fair and transparent, and shall be conducted according to procedures that are simple and easy to understand. 3. For all purchase transactions we shall observe the Group Code of Conduct, follow corporate ethics, fully comply with relevant laws and regulations, show consideration for resource conservation, environmental preservation and human rights, and ensure that our business partners understand these guidelines.

■ Working Together on Boeing 787 Development

The Working Together Team (WTT) is 787, ordering 50 of them in April a development group in which Boeing, 2004—ANA has been deeply involved engine manufacturers, related vendors at the design and development stages and airlines collaborated to problem- of the new aircraft. solve and make the Boeing 787 the Using this opportunity to directly most effi cient, comfortable aircraft of express our thoughts on aircraft design, the 21st century. we emphasized the need for the As the “launch customer”—the fi rst following: high reliability, enhanced airline in the world to order the cabin comfort to be more competitive, increased fl ight operation ease, cost reduction, and environment-friendly design. Our WTT involvement had a signifi cant impact on the economical design concept, which takes into consideration Japanese airlines’ unique short-haul operations.

ANA logo painted on the Boeing 787

CSR Report 2007 49 Society環境 – Employees Fostering a Spirit of Challenge

To create a strong ANA Group, we ■ ANA Group Human Resources (HR) Philosophy foster human resources under our Group HR Philosophy of “Taking The ANA Group HR Philosophy, estab- Seven Keywords Targeting the Goal Up the Challenge.” lished in 2002, focuses on teamwork Individuality, Expertise as a competitive strength by effectively originality utilizing human resources. It deﬁ nes the

type of people and values necessary Internationa- Seniors for a strong Group with “customer- lization 2009 oriented” being the primary prerequi- Goal site. And we are working to increase Group Women employee value under seven keywords

listed in the philosophy including Communication “internationalization,” “women” and “seniors.” Group HR Philosophy “Take up the Challenge”

● Challenge for personal “GROWTH” and challenge for our customer's “EXCITEMENT” and “EXPERIENCE.”

● Always challenge. Limitless challenge creates a strong ANA Group.

■ Increasing Employee Value, Encouraging Diversity

Prep Ofﬁ ce for Corporate University Comfortable work environment ANA will launch a corporate university ANA supports employees with provisions to achieve TEAM ANA’s goal of fos- for childcare and nursing leave and tering employee development. We will a study-abroad program. Since April start by creating a faculty this year for 2007, we extended the eligibility of core employees who are to play major childcare leave (three days a month) roles in the ANA Group in the future. and of shorter working hours for This will strengthen the entire Group’s employees with preschoolers. During ability to “Learn and Put Into Practice.” FY2006, 247 employees took childcare leave, eight took nursing leave and 16 Iki Iki Promotion Room In April 2007, the Iki Iki Promotion Room was established to cultivate a corporate culture that celebrates employee diversity*. The goal for Human Resources is to make the workplace one where all ANA Group employees do their jobs with enthusi- asm, vitality and creativity.

* Fostering a diverse base of employees regardless of race, gender, age, religion, etc. to maximize the Director Junko Miyasaka (left) and Manager Natsuki Uota, potential of our human resources. Iki Iki Promotion

50 CSR Report 2007 enrolled in the study-abroad program. 1993 to expand the workplace for the Internship Program We also are enhancing ﬁ nancial sup- physically challenged. We have been An internship program has been port for employees trying to balance creating a comfortable work environ- instated, providing students the oppor- childcare with their careers. ment including setting up a barrier-free tunity to learn all about airport services ofﬁ ce space within Haneda Airport. We through experience. Supporting women are facilitating employment for the dis-

ANA currently employs over 6,000 abled, who in FY2007 accounted for Number of Women in Managerial Positions women—about half of our work- 1.83% of our workforce (exceeding the persons % 210 7 6.1% force—mostly as cabin attendants and 1.8% mandated by law). 180 5.4% 6 4.8% airport passenger service staff. We are 150 4.3% 5 120 4 also actively recruiting women for sogo- Approaches relating to the respect 90 192 3 146 168 shoku (career positions) such as in for human rights 60 131 2 30 1 administration and maintenance, and The ANA Group has a clear policy 0 0 2003 2004 2005 2006 FY for the cockpit. Among our graduate for promoting human rights awareness. Number Ratio recruits in FY2007, women occupied We have assigned a dedicated employee

38% of new sogoshoku appointments, to the ANA Personnel’s Human Rights Employment Ratio of Physically Challenged and we were the fi rst airline in Japan Awareness Room, drafted a human 1.9 % to appoint a woman to the board of rights program, and are supporting the 1.83% 1.8 Legally mandated employment rate directors. We are working to expand promoting staff members at ANA Group 1.7 the number of managerial positions for offi ces. 1.60% 1.75% 1.6 1.49% women. 1.5 0 2004 20052006 2007 FY Utilization of Seniors Ratio ANA has an employment extension system to exploit the skills and know- how of employees after they turn 60. Women in Action Employees can work up to the age of 65, part-time (fewer working days and Noriko Ohoka shorter hours) as well as full-time. In Handling 5, Line Handling, International Airport Utility FY2006, 106 employees took advan- My job is aircraft marshalling, watching for wing clearance tage of the system. during arrival and the attachment and detachment of the PBBs*. Placing priority on the safe, on-time departure of aircraft under Internationalization any weather and circumstances, I feel truly lucky day-in, day-out ANA promotes the international diver- to be doing my dream job. I would like to polish my skills and work toward further qualifi cations. sifi cation of its workforce. We are cultivating a global workforce by * Passenger Boarding Bridge actively hiring foreign employees, send- ing employees on overseas internship programs, holding joint seminars with other Star Alliance members, and host- Mana Yamabe Transport Service, Administration, World Airport Service ing a short-term work program in Japan for overseas employees. I joined the company after being deeply impressed by the mar- shaller shown on the cabin screen. I still remember the excitement and sense of accomplishment I felt when I directed my fi rst Supporting the physically plane after training. I will strive to become a ground handler that challenged brings dreams and excitement to our customers. The aviation industry’s fi rst special sub- sidiary for employment of the disabled, ANA Wing Fellows was established in

CSR Report 2007 51 Society環境 – Employees Safe and Pleasant Workplace

The ANA Group is actively working ■ Approach to Safety and Health to create a work environment in which all employees feel secure, Recognizing that an employee’s safety, Frequency of Work-related Accidents over the Past Three Years motivated and fulﬁ lled. health and work environment are fundamental corporate responsibilities, all 50 45 ofﬁ ces nationwide are introducing vol- 40 untary activities through their health 35 47 41 41 and safety committees. 30 38 25 0 2003 2004 2005 2006 FY ANA Group Occupational Safety and Health Policies The ANA Group enhances employee value by improving and maintaining occupational safety and health. This is accomplished through: 1. accident prevention programs and those encouraging employee health; 2. various measures and management systems (PDCA cycle) aimed at improving safety and health; 3. the observance of laws and regulations, and activities raising employee awareness of occupational safety and health.

■ ANA Health Frontier Declaration

In 2006, aiming to become a corpora- importance of mental health measures tion ﬁ lled with vitality, we announced and, in collaboration with medical staff, the ANA Health Frontier Declaration. of the need to enforce regular working To prevent lifestyle-related diseases, we hours. will energetically work to create opportunities for the betterment of employee *QOL:Quality of Life Improving health health, such as holding seminars with Employees Improving QOL* yoga classes, walks, and health lectures at various locations. ANA Health Frontier Declaration Additionally, we will hold periodic health examinations to ensure employee well-being. Karoshi is sudden Corporate Health ANA Insurance death from overwork and a serious problem in society today. We are working to raise Group awareness of the Enhancing corporate vitality Controlling medical costs Improving productivity Restoring fiscal health

■ ANA Welfare Plan

To help employees feel fulfi lled and “insurance plan,” “life support,” “lei- motivated at each stage of their sure support” and “second life,” offers careers, from recruitment to post-retire- employees a choice of schemes best ment, we have created the ANA Wel- suited to their particular lifestyle. We fare Plan consisting of programs for also instituted a Cafeteria Plan where employee health and welfare. The Plan, employees can select benefi ts from a which is divided into the six categories menu to satisfy their specifi c needs. of “health plan,” “fi nancial plan,”

52 CSR Report 2007 Employee Communication

The ANA Group values ■ Employee Satisfaction (ES) Survey communication with employees, from talks with labor unions The ANA Group has been holding its ES the survey results. We are actively work- on the working environment, to survey since FY2004 to assess the prog- ing to solve problems so customers may the direct talks we frequently ress of employee productivity. In May experience our “Anshin, Attaka, Aka- hold where employees can meet 2007, we launched a Labor-Manage- ruku-Genki! (Reliable, Warm, Enthusias- top management for frank ment Joint ES Promotion Project, under tic!)” character. discussions. which labor and management discuss

■ Direct Talks with Management ■ ANA Virtual Hollywood

We encourage direct dialogue between ANA Virtual Hollywood was launched this to encourage initiative, greater employees and top management. In in 2004 with a view to providing interaction and creative problem-solv- these talks, the management represen- Group employees the opportunity to ing. In FY2006, 22 “directors” (propos- tatives share their thoughts on Group take up challenges of their choosing— ers) implemented their unique ideas. matters of the day and future direc- tions, while employees express how they see the situation along with any problems in the workplace. This direct ■ Free Conversation Room communication cuts through any bar- riers between management and the The Free Conversation Room is a BBS and suggestions for improving service, frontline. on the Group intranet for employees to analysis of recent trends. We hope In FY2006 a total of 40 Direct Talk to voice opinions anonymously. Mes- that the system will generate new ideas sessions were held at 12 regions, and sages posted by employees range from and insight for the beneﬁ t of all. more than 450 comments received. those pointing out safety-related issues

■ Labor-Management Relations

ANA Group operations depend on col- Mindful of these factors, we strive laboration by many people in diverse to maintain mutual trust and coopera- positions. Communication among tion through extensive discussion and employees, and between labor and dialogue between labor and manage- management, is of critical importance ment. At the same time, we strive to Direct Talk session to the proper functioning of the busi- contribute to society by fulﬁ lling the ness. A high level of employee motiva- ANA Group’s mission of ensuring safety tion and skill is also of fundamental while improving our services and funda- importance. Consequently, an environmental quality. ment conducive to communication is essential.

CSR Report 2007 53 Environment環境 Interview

Environmental Efforts Global Warming Prevention Measures from the Frontline

Aircraft account for 98% of all aircraft are in top condition, so we pay CO2 emissions at the ANA Group. great attention to safety. In pursuing Through the effi cient use of maintenance work, I also pay utmost fuels, we are pursuing various attention to such points as whether approaches to control these my judgment is correct, whether regula- emissions. Among those in our tions are being observed. fl ight crew and maintenance section who implement global- Will you introduce the global warming prevention measures at warming measures that you are the front line, we interviewed developing? Captain Akira Kobayashi, a Boeing Kobayashi: As 98% of CO2 emissions at 767 pilot, and Authorised Aircraft the ANA Group are from aircraft, I feel Maintenance Engineer Akito Mibu. that fl ight crew have a very important role. Engine starting, taxiing, takeoff, Akira Kobayashi fl ying at cruising altitude, landing and Captain What points do you watch for in parking—in each of these operations, Tokyo Boeing 767 Pilot Offi ce, your work? from departure to arrival, we consume Flight Crew Center, Flight Operations jet fuel. At Flight Operations, since Kobayashi: Absolute focus on fl ight FY2003 we have been working on safety. It goes without saying that I an EFP*1 promotion project that helps consider this my biggest job responsibil- reduce fuel consumption through vari- ity. The Operational Manual, a kind of ous schemes. For example, fl ight plans bible for fl ight crew, states the funda- take into consideration weather condi- mental policy: “While keeping safety tions and air traffi c to choose altitudes fi rst and foremost, strive for optimal and speeds requiring less fuel; and we fl ight effi ciency and on-time fl ight oper- inform fl ight crews of the descent and ation, and perform tasks proactively to approach points for each airport for ensure a comfortable fl ight.” In daily the most fuel-effi cient maneuvers. I am fl ights, as well as focusing on fl ight active as a member of the project. safety, I make efforts to provide the In daily operations, sometimes highest-quality fl ight under various con- speed is increased to avoid operational straints such as weather and airport delays, but when we looked at the rela- congestion. tionship between such operation and fuel consumption, we found that the Mibu: My job is inspecting and repairing latter greatly increased while the time aircraft at Kansai Airport. Maintenance saved was negligible. In this project, engineers must release aircraft to the actual data is published to impress on fl ight crew only after making sure the fl ight crew that speeding up without

54 CSR Report 2007 sors regularly with water to remove the Kobayashi: We constantly monitor cli- attached particles, restore engine per- matic conditions to determine the best formance and improve fuel effi ciency. balance of safety, effi ciency, punctuality and comfort, but nature is whimsi- How much effect do these cal and occasionally shows its fangs. measures have? I bear that fi rmly in mind; we should never underestimate nature. Kobayashi: Though we are constrained Until now, fl ight crews were con- by weather conditions and air traffi c fi dent that they were being fuel effi - control, in the case of a Boeing 767, cient. Now that the EFP data has been if you raise cruising altitude by one disclosed and fl ight crews are aware rank*2, fuel consumption decreases of how much fuel is being saved, I 1–2%. And you can save fuel by think this will motivate us to reduce choosing an effi cient route, thereby even more CO2. shortening fl ight time. Akito Mibu How can fuel effi ciency be Mibu: When washed of dust particles, further improved? Authorised Aircraft Maintenance Engineer Maintenance, Kansai Airport Offi ce engines are about 1% more effi cient. But even if washed, an engine’s fuel Mibu: I think that right now, deploying effi ciency deteriorates over time as the latest engines is the best way. The due reason saves very little time and particles become attached again. So Boeing 747 aircraft has four engines just burns more fuel. we will wash them more frequently in but its successor, the 777, can fl y *1 Effi cient Fuel Program FY2007, and wash more of them. with only two. If engine performance *2 2,000 feet (about 610 m) improves and fuel effi ciency increases, What measures are being taken in this of course reduces the impact on the maintenance section? What sort of diffi culties do you the environment. I have big expecta- experience? tions of the Boeing 787 scheduled to Mibu: What we emphasize most is the be introduced in 2008. washing of engines, which we have Mibu: Washing requires a large facil- been enforcing since FY2003. Engines ity—it could only be done in the hangar. Kobayashi: Another factor is the don’t get dirty when the plane is high But in May 2006 the engineers devel- congestion of airports and airways. up in the sky but rather during taxiing oped a washing kit that could be used Waiting to takeoff, or being instructed or just after takeoff, where the air is on the ramp. This kit is now deployed to reroute or hold position in the air— less clean. Dust particles sticking to at Narita, Haneda, Chubu, Kansai, Fuku- these are all common at various airports the compressors degrade the perfor- oka and Okinawa airports, where wash- and times. At Haneda and Narita air- mance of engines, which then need ing can be done in two hours between ports in particular this happens a lot. I more fuel to do the same amount of fl ights, greatly increasing effi ciency. At hope airports and control facilities will work, resulting in more CO2 emissions. the ANA Group we make it a rule to be improved to alleviate the impact on Our solution is to wash the compres- wash engines once in three months. the environment.

CSR Report 2007 55 Environment環境 Environmental Policy

In 1998 the ANA Group published ■ Perspective on the Environment the ANA Environmental Policy stipulating our basic policy and Our Environmental Policy consists of In addition, each of us will maintain course of action regarding the various measures. We will increase cor- a strong awareness of environmental global environment, which has porate value while fulﬁ lling our social protection and do our utmost to reduce been implemented apace. responsibility so that we become a our impact on the global environment company that is admired by the public. and contribute to a sustainable society.

ANA Environmental Policy ANA’s Attitude Toward the Environment

Basic Policy We will pursue: Protection of the environment Effective utilization of limited natural resources Awareness of the public good

Course of Action 1. We will evaluate the impact of our commercial activities on the environment, and persevere in our efforts to protect the environment. 2. We will observe environmental laws and regulations, and furthermore, think and act independently to protect the environment. 3. We will do our utmost to minimize the environmental impact of our operations. 4. We will make every effort to save energy and resources, to recycle, and to reduce waste. 5. We will contribute to the communities in which we live and work, through participation in social activities for environmental protection. 6. We will educate employees so that each may pay much more attention to environmental protection.

Excerpts from the ANA Group Code of Conduct Environmental Protection

Protecting the environment is essential for the ANA Group. We play an active role in environmental protection activities and work to preserve natural resources in the course of our business activities. We must recognize how our business impacts the environment. While minimizing the impact on the environment, we will maintain the sustainability of our business by following the ANA Environmental Policy.

56 CSR Report 2007 Environmental Management

■ System for Environmental and Social Issues

The ANA Group has been addressing ronment and Social Affairs Department, environmental issues since the 1970s, aiming to fulfi ll our social responsibili- centering chiefl y on the problem of ties and further gain the trust of stake- noise pollution. holders. By the 1990s, recognizing that In May 1993 we published the the environment had become a global Environmental Report (1992 edition), issue, we adapted our measures from the fi rst such publication among air- this standpoint. In April 2007, rather lines in Japan, and prior to our formal than merely focus on conventional entry into the Star Alliance in October environmental issues, we changed our 1999, we signed the Star Alliance Envi- Environment and Social Affairs Depart- ronmental Commitment Statement in ment to a CSR Promotion Division Envi- May of that year.

Environmental Management Promotion System

President & CEO

Global Environment Star Alliance Environmental Commitment Statement Environment Committee Subcommittee

CSR Promotion Committee Flight Environment Working Group (WG) Risk Management Committee

Ground Environment WG

Office Management Compliance Committee Environment WG

Timeline of Environmental Activities

Date Committee Organization Promoting Organization Activities

Published the “Environmental Measures Handbook” in 1978, which became a bible for employees 1973.11 Airport Division and is still used as a reference

Committee for Special committees established for “total assessment,” “flight noise measures,” “ground noise and 1974.2 Environmental Measures air pollution measures,” and “factory environment measures”

Environmental Conservation 1990.7 Published the first Environmental Report in 1993; announced ANA Environmental Policy in 1998 Promotion Office

Global Environment Adapted organizations into subcommittees for “global environment,” 1999.6 Committee “flight environment” and “ground environment”

Global Environmental Formulated ANA Ecology Plan (2003–2007) Conservation Promotion In 2003, launched International Environmental Picture Book Competition and forestation project Department

Environment and Social In 2004, formed Team Tyura Sango as part of environmental conservation activities 2004.4 Affairs Department and launched coral planting project

CSR Promotion Division 2007.4 Environment and Social Affairs Department

CSR Report 2007 57 Environment環境 ANA Group Ecology Plan 2003–2007

The ANA Group formulated the ANA Group Ecology Plan─Review of FY2006 mid-term ANA Group Ecology Plan Item Aim in 2003. Each year since then we have published progress reports; Environmental Group-wide enhancement of legal compliance management and compliance the FY2006 report is the fourth such report. Environmental Keeping customers informed and communication reflecting their views in our policies

Promoting Deployment of environmental environmental management methods based on management ISO14001 ISO 14001 throughout the Group

Environmental accounting Group-wide environmental accounting

Promotion of transparent environmental Group companies management among subsidiaries

Reduction of the level of CO2 Reduction of CO2 emissions per available seat kilometer in emissions from jet fuel FY2007 by 12% relative to FY1990 Climate change Reduction of electrical and thermal Reducing energy use energy consumption in facilities by 5% in offices relative to FY2002

Conformance with aircraft Retirement of engines not meeting emissions standards ICAO engine emission standards

Environment-friendly Doubling of proportion of all Air pollution vehicles low-pollution and low-emission vehicles

Maintenance of zero emissions for Protecting the ozone layer regulated substances

Conformance with ICAO All aircraft to meet Chapter 4 Noise noise levels (Chapter 4) standard by FY2007

Disclosure of actual recycling data on a yearly basis toward the goal of zero emissions. Reduc- Waste reduction tion of industrial waste sent out for final disposal to 15% by FY2007

Increase the green purchasing rate to 100% for copier paper, and to 80% Recycling Green purchasing for other office supplies, by the end of FY2007

Development of alternatives to substances Reducing harmful covered by the PRTR (Pollutant Release substances and Transfer Register) Law and disclosure of actual data pertaining to yearly reductions

Environmental Annual environmental picture book Promotion of picture books competition Aozora environmental social contribution Promoting forestation activities in activities Forestation project Japan and abroad

58 CSR Report 2007 FY2006 review Reference page

On average seven laws/regulations related to the environment are applicable to each facility, and we adhered to a total of 383 such laws or regu- 62 lations. We incurred no penalties and caused no environmental mishaps.

In addition to participating in environmental events such as Ecolife Fair 2006, we published features on the environmental issues in our Japanese- 63 language inflight magazine, Tsubasa no Okoku, every other month. We receive feedback on these efforts through our website.

In accordance with ISO14001 requirements governing environmental policy, we collected environmental data, enforced compliance with environ- 63 mental laws and regulations, and more.

FY2006 accounting covered six airlines—ANA, Air Nippon, Air Nippon Network, Air Japan, Air Central and Air Next 63

In addition to our efforts at environment education through e-learning on the Group’s intranet, many employees participated in various environ- 64 mental protection activities such as forestation and coral planting.

Through the EFP (efficient fuel program) and by regularly washing engines, we achieved a 12% reduction relative to FY1990. 65～69

We promptly joined Japan’s national movement, “Team Minus 6%,” to prevent global warming and are endeavoring to save energy by adjusting the temperatures of our heating and cooling systems. Office power consumption, which accounts for three quarters of all energy we use on the 68 ground, was 133 million kWh, 1.8% less than in FY2002.

With the retirement of Boeing 747-100SR and -200B aircraft in FY2005, emission levels of all jet engines in use at the ANA Group are within ICAO standards. 70

The proportion of low-pollution and low-emission vehicles reached 14.9% in FY2006, double the 7.4% of FY2002, the standard year. 71

With the withdrawal of YS-11 aircraft in FY2003, the ANA Group no longer possesses any controlled CFCs (chlorofluorocarbons); in FY2004 we installed equipment to retrieve all halon during regular inspections of on-board fire extinguishers. With these measures we have established a 71 zero-emission system for controlled substances.

We achieved our goal of having our entire fleet conform to the Chapter 4 standard. 72

We recycled aircraft engine parts and aluminum material from repairs (into raw metal); waterproof and dustproof vinyl sheets (into solid fuel and garbage bags); airline tickets (into toilet paper); and inflight magazines (into pulp). Cabin attendant uniforms were also recycled. 73

By making greater use of the LAN (Local Area Network), we achieved a total green purchasing rate of 70%—an increase of 7% over FY2005. In addition we achieved 97% green purchasing for copier paper, and 75% for other office supplies. 73

We made efforts to develop alternatives not subject to the PRTR Law for paints, paint removers and cleaning agents. While we used more kinds of hazardous substance this year (32; an increase of 1 from FY2005), the total weight of these substances decreased to 21.5 tons, a 20% drop 74 from FY2005.

Our fourth Aozora International Environmental Picture Book Competition attracted 569 entries from 10 countries. The first-prize-winning entry 76 was printed as a book (100,000 copies) and distributed onboard, at offices and through educational organizations.

Forestation activities were held at 5 locations with the participation of local communities, industry and universities. Coral planting took place 8 times, with a total of 224 divers taking part. 75

CSR Report 2007 59 Environment環境 Introduction of Boeing 787

ANA’s order for 50 Boeing 787 ■ Selection Criteria ahead of anyone else made it the launch customer for the aircraft ANA was in need of a next-generation, vice capability for domestic and interna- and led to its involvement at the mid-sized aircraft in view of the expan- tional routes, as well as reliability, cost design and development stages. sion of Haneda Airport and to replace efﬁ ciency and comfort surpassing those The Boeing 787 was rolled out its current 767-300s and 767-300ERs. of the Boeing 767-300; (3) and delivery in July 2007; ANA is scheduled to The Boeing 787 was chosen for its: in time for both the Haneda expansion receive delivery of the ﬁ rst aircraft (1) 300 passenger capacity; (2) dual-ser- and retirement of the 767-300. in 2008. ■ Characteristics of Boeing 787

Increased Involvement of Japanese Lighter Weight Through Compos- Corporations ites, Improved Cabin Environment The Boeing 787 is notable for the Composite materials are used for struc- involvement of Japanese manufacturers tural parts including the main wings in its development: Japanese corpo- and fuselage, resulting in a much rations (Mitsubishi Heavy Industries, lighter craft. Despite its medium size Kawasaki Heavy Industries, Fuji Heavy (length: 56.7 meters; wingspan: 60.1 Industries) manufacture 35% of the meters; height: 16.9 meters) the 787 airframe, and Toray provides the car- has performance rivaling that of wide-

The Boeing 787 rollout in July 2007 bon-fi ber composites used in the main body aircraft, and its cruise speed of structure. Mach 0.85 equals that of today’s fast- est commercial airliners. The 787 also boasts about 15% more cargo space, as well as a spacious, humidifi ed cabin environment with wider seats, wider aisles and larger windows. In addition, lavatories are equipped with Wash- lets—an industry fi rst.

Enhanced Flight Safety and Effi ciency For better pilot visibility, the number of cockpit windows has been reduced from the conventional six to four larger ones. Cockpits also feature such cutting-edge equipment as the Head-Up Display (HUD), which lets fl ight crew confi rm vital information without alter- ing their line of vision; the Vertical Situ- ation Display (VSD); an electronic check list; and the Electronic Flight Bag (EFB), for browsing digitalized manuals and viewing the airplane’s position on the tarmac. This enhanced cockpit environment helps reduce the burden on fl ight crew while improving safety and effi - ciency. Boeing 787 (generated image) ©Boeing

707-120

high 727-100

767-200 low

787

1955 1965 1975 1985 1995 2005 2015 FY

Noise Impact Areas

･85dBA contours 767-300

Spacious cabin (Image) Lavatory equipped with Washlet

runway

Boeing 787-8 and -3 Introduced rior condensation and winter lightning

ANA is deploying the Boeing 787-8 are included as standard equipment. 787-8 and -3 variations. The 787-8 is the stan- Noise impact area of Boeing 787 is confined to the airport dard model with a cruising range of Lower Maintenance Costs 14,800–15,700 km, while the 787-3 is A maintenance program for short-haul, designed for short-haul operation with frequent operation unique to ANA has a cruising range of 5,550–6,500 km. been developed that allows highly cost- effi cient maintenance for ANA. For 20% More Fuel Effi cient Than 767 example, highly durable paints, devel- Thanks to state-of-the-art technology oped at our request, mean that and advanced aerodynamics, fuel effi - the aircraft will not need to be ciency has been improved by some repainted as frequently; the 20% over the Boeing 767; the 787’s thrust control method, Rolls-Royce Trent 1000 engines produce optimized for short- approximately 20% less CO2 and 15% haul, frequent less NOx. operations such as ours, was developed 40% Quieter to lengthen the service Compared with the Boeing 767-300, life of engine parts. which is roughly the same size, the 787 Lower engine is 40% quieter on takeoff. maintenance costs are expected from these Suited for ANA Operations developments. The 787-3 is designed for ANA’s typical need: short-haul, frequent operation. For certain weather conditions peculiar High-performance Rolls-Royce Trent 1000 engine to Japan, features responding to inte-

CSR Report 2007 61 Environment環境 Promoting Environmental Management

To meet its growing corporate ■ Compliance with Environmental Laws/Regulations social responsibilities, since FY2002 the ANA Group has Business Facilities Subject to Envi- ment Law and the April 2005 Vehicle promoted a system to ensure ronmental Laws/Regulations Recycling Law. compliance with environmental The ANA Group is subject to 23 laws/ The system locates reliable oper- laws and regulations. We are regulations at a total of 383 business ators in Hokkaido, Tohoku, Kanto, also practicing “environmental facilities. In FY2006 we incurred no Hokuriku, Kansai, Chubu, Chugoku, communication” and have penalties and caused no environmental Shikoku and Kyushu to properly and enhanced our environmental mishaps. efﬁ ciently dispose of such vehicles used accounting. In these ways ANA at airports in those regions. Group companies are also actively Disposal of Used Vehicles Vehicles previously owned by a promoting environmental The ANA Group owns roughly 3,000 Group company, Air Nippon, were management. vehicles in Japan. Many of these transferred to ANA in FY2006; to are specialized vehicles whose disposal enable the integrated disposal of vehi- entails various problems such as logis- cles at remote island airports such tics. To properly dispose of these used as Ishigaki and Miyako as well, we vehicles, we established a Japan-wide selected an operator in Uruma City that network that meets applicable laws and works with a shipping company. regulations, both the Waste Manage-

Used Vehicle Disposal Network Applicable Laws/Regulations and Number of Facilities Law/regulation Facilities Hokkaido region 1. Law of the re-manufacture of specific home appliances (Home Appliance Recycling Law) 56 Operator in the region Chitose 2. Waste Management and Public Cleaning Law 56 3. Vehicle Recycling Law 21 Okinawa region Law concerning the protection of the ozone layer through the control of specified substances (Okinawa Main Island, 4. 45 Ishigaki Island, and other measures (Ozone Layer Protection Law) Miyako Island) Law for ensuring the implementation of recovery and destruction of fluorocarbons related 5. 47 to specified products (Fluorocarbons Recovery and Destruction Law) Uruma Hokuriku region 6. Law concerning special measures for promoting appropriate treatment of polychlorobiphenyl waste 2 Oyama Toyama Tohoku and Kanto region Law concerning reporting, etc. of the release to the environment of specific chemical substances Chugoku region 7. and promoting improvements in their management (PRTR Law) 18 Osaka Hiroshima 8. Law for the rational use of energy (Energy Saving Law) 13

Kansai and Chubu region Matsuyama 9. Air Pollution Control Law 14 Fukuoka Shikoku region Law concerning special measures for total emission reduction of nitrogen oxides and small particles 10. from automobiles in specified areas 21 Kyushu region 11. Water Pollution Control Law 17 12. Sewage Control Law 7 13. Septic Tank Control Law 6 14. Noise Regulation Law 8 15. Vibration Regulation Law 7 16. Offensive Odor Control Law 6 17. Factory Allocation Law 1 Law for developing pollution prevention organizations at specified factories 18. 1 (Pollution Prevention System Development Law) 19. Toxic and Hazardous Substances Regulation Law 20 20. Container and Packaging Recycling Law 8 21. Building Material Recycling Law 2 22. Law to ensure sanitary environments in buildings 7 23. Food Recycling Law - Total 383

62 CSR Report 2007 ■ Environmental Communication ■ Educational Activities

Communicating Our Environmental The ANA Group holds activities to raise intranet. Interest in the environment is and Social Activities awareness of the environment among high at the ANA Group, and a growing If we are to earn the trust of society, employees. The ANA Group Environ- number of sections are making efforts properly communicating our environment Seminar is held annually, and we to save energy. mental and social activities is as impor- have an e-learning program on our tant as the activities themselves. The ANA Group’s environmental ■ Environmental Accounting and social activities—such as coral planting, forestation and International To determine the quantitative cost of its Air Nippon Network was included in Environmental Picture Book Compe- environmental conservation activities, in FY2004, Air Next in FY2005, and Air tition—have been featured in our FY2001 ANA introduced an environ- Central in FY2006. monthly infl ight magazine, Tsubasa no mental accounting system. In FY2002 Rising costs in management activ- Ohkoku, as well as on our “Channel the system was extended to all business itied and energy-effi cient aircraft J” Internet TV webcast. Our coral- offi ces and branches in Japan, and Air purchasing/leasing spurred an 8% planting activity and aircraft engine Nippon and Air Japan were included increase of the FY2006 environmental washing were featured on TV pro- in the categories of energy-saving air- conservation outlay to ¥22,446 million. grams. Since we added an environment craft and ground power units (GPU). section to ANA’s website in 1999, we have received numerous inquiries and Environmental Accounting Record (FY2006) Unit: JPY millions comments. Environmental items Costs Major activities Cost at each site Pollution prevention costs 768 Processing disposed water from washing aircraft fuselages and kitchen facilities Global environmental 13,691 Introduction of energy-saving aircraft; Use of ground power for parked aircraft Ecolife Fair conservation costs Our exhibit at the annual Ecolife Fair Resource recycling costs 604 Waste treatment; Reduction, sorting and recycling of waste Green purchasing; Additional costs to offer environment-friendly goods; in Yoyogi Park (Tokyo) is another exam- Upstream and downstream costs 129 ple. In addition to introducing the Measures to comply with Packaging Recycling Law EMS-related; Environmental information disclosure and ads; Environmental ANA Group’s environmental activities Management activity costs 6,977 impact monitoring; Environmental education; Greening and beautification through DVD and panel presentations, of offices and environs; Other environmental management activities Research and development of products contributing to environmental conservation; our display featured recycled uniforms Research and development costs 247 Research and development to control environmental impact during manufacture; and new, lighter seats designed to Control of environmental impact during logistics and sales Greening and beautification of offices and environs; Financial support of environmental reduce overall aircraft weight. By par- Social activity costs 30 conservation organizations; Support of environmental activities in local communities ticipating in ecology-related exhibitions Natural restoration costs; Compensation for environmental conservation-related Environmental damage recovery costs － and by communicating with people mishaps; Provision of reserve for environmental mishaps and insurance premiums who visit our booth, we are working Total 22,446 * The ANA Group appropriates 10% of its depreciation costs and leasing costs of aircraft to environmental accounting. to inform the public about the ANA * Targeted sections: All ANA sections (excluding overseas branches), Air Nippon (ANK), Air Japan (AJX), Air Nippon Network (AKX), Air Next (NXA) and Air Central (CRF) * Covering period: FY2006 (April 1, 2006─March 31, 2007) Group’s environmental activities. * Others: Based on the environmental guidelines set by the Ministry of the Environment

■ ISO14001 Environmental Management System Certiﬁ cation

In February 2002, the Narita Mainte- Catering Service nance Center of the Engineering & received ISO14001 Maintenance Division became the fi rst certifi cation in aircraft-handling facility in Japan to August 2007. obtain ISO14001 environmental management system certifi cation. ANA ANA’s booth at Ecolife Fair 2007 ISO14001 certifi cation

CSR Report 2007 63 Environment環境 Promoting Environmental Management

■ Environmental Management Efforts

The First e-fl ights in the World Reducing Industrial Waste Through Ahead of any other airline in the world, Reuse the ANA Group operated “e-fl ights” ANA Aero Supply Systems is a Group with the goal of raising environmental company that manages the inventory awareness among passengers. This was and bookkeeping of aircraft parts and introduced on 23 scheduled fl ights maintenance tools, as well as the from October to December 2006. receipt and examination of aircraft During these fl ights, a message materials. The company, which used to from writer C.W. Nicol, producer of consume much bubble patch for the “ANA Earth Friendly Project,” was packaging of parts, now helps reduce Cardboard boxes are repurposed into packaging materials. shown on Sky Vision. Passengers were industrial waste by applying unneeded given natural mineral water and Rain- materials such as cardboard to the pro- forest Alliance-certifi ed, environment- duction of packaging material. friendly coffee in nonwood paper cups. Super Seat Premium customers enjoyed Proper Handling of Waste, Reducing a light meal consisting of specially culti- Electricity and Water vated agricultural produce, and snacks In FY2005 ANA Aircraft Maintenance of organic vegetables. (ANAM) established a global environment team. The fi rst thing they tackled was the “3Rs” of waste— reduce, recycle and reuse—to mitigate the company’s heavy consumption of combustibles, waste plastics and waste solutions. The team patrolled the work- Waste collection facility place to verify that waste was being properly sorted and handled, with excellent results. In FY2006, under the banner of “Eco-Eco Activity,” ANAM focused on a 10% reduction in electricity and e-fl ight logo water usage over the previous year. Fluorescent lamps were replaced with more effi cient types, and high-effi - ciency troffers were also used. Air- conditioning was also rendered more Waste is thoroughly sorted. effi cient through better insulation, which was achieved by doubling the window sash during offi ce remodeling. As a result, electricity usage decreased by 11%. By installing special parts to faucets, water usage decreased by

Rainforest Alliance-certiﬁ ed coffee is served 34%. in nonwood paper cups.

64 CSR Report 2007 Climate Change

For FY2007, under its Ecology ■ Aviation and Climate Change Plan, the ANA Group has set the goal of reducing CO2 emissions Aircraft engines run on fossil fuels, ating aircraft, but also in maintaining per available seat km to 12% which through combustion produce them and even in doing the paperwork. of FY1990 levels. In FY2006, we emissions of mainly CO2 (carbon In FY2005, the transport sector achieved reduction very close to dioxide), NOx (nitrogen oxides) and accounted for some 20% of all indus- our target of 12%, resulting H2O (water vapor). In particular CO2 trial CO2 emissions. The share of CO2 in 8.19 million tons* of CO2 accounts for 95%* of greenhouse gas emissions from domestic aviation in emissions, 98% of which resulted emissions in Japan. But we produce Japan was about 4.2% of all transport from the combustion of jet fuel. greenhouse gases not only by oper- sector emissions. By upgrading our ﬂ eet to the latest aircraft, and by performing CO2 Emissions in Japan by Sector (FY2005) CO2 Emissions in Japan’s Transport Sector (FY2005) optimal engine maintenance, ● Power generation 6.1% ● Personal passenger cars 48.9% (e.g. electric power plants) among other measures, we are ● Personal trucks and vans 18.0% ● Industrial sector 35.2% working hard to achieve our (e.g. factories) ● Commercial trucks and vans 17.3% ● Transportation 19.9% FY2007 goal. (automobiles, shipping, etc.) ● Buses 1.8% *Ground energy included ● Offices 18.4% ● Taxis 1.7% (e.g. office buildings) ● Shipping 5.0% ● Households 13.5%

● Industrial processing 4.2% ● Railways 3.0% (e.g. consumption of limestone) CO2 emissions Source: Ministry of ● Aviation 4.2% 1,293,000,000 tons ● Waste processing 2.8% the Environment Source: Ministry of the Environment (incineration of plastics, oil)

■ Reduction of CO2 Emissions from Jet Fuel

ANA Group CO2 Emissions per ASK CO2 Emissions emissions from aviation activities were

g-C eq./ASK (g-CO2/ASK) ASK (Units: 10 billion), Fuel (Units: 1 million kl) There is currently no substitute for fossil 8.11 million tons in FY2006, up 4.4% 28 (103) 16 24.5 fuels available to the aviation industry, from the previous year due to business (89.8) 26 (95) Target to reach 12 by 2007 so we must curb CO2 emissions by expansion. CO2 emissions per unit pro- 24 (88) 24.6 8 (90.3) improving fuel efﬁ ciency. duction (available seat km) became 22 (81) 4 In the climate change measures out- 24.6g-C (90.3g-CO2), still about 12% 3.29 20 (73) 0 lined in the ANA Group Ecology Plan, lower than in FY1990, our benchmark 90 95 00 05 06 07 FY Trend of CO2 emissions Fuel consumption (1 million kl) we set the goal of reducing CO2 emis- year. sions per available seat km by 12% Although the number of seats from FY1990 levels by FY2007, and we in service increased signiﬁ cantly from have been implementing various activi- FY1990 due to higher demand, the ties to that end. The ANA Group’s CO2 CO2 emissions per ASK decreased.

ATK (Available Ton Kg) CO2 Emissions by Cargo Fleet The ANA Group has been operating a dedicated cargo fleet on international routes since FY2002. ATK CO2 emissions from this operation are as follows:

Aircraft type FY2002 FY2003 FY2004 FY2005 FY2006 B767-300F 479 446 439 439 413 (g-CO2/ton km)

CSR Report 2007 65 Environment環境 Climate Change

■ Fuel-Efﬁ cient Aircraft

Fuel Efficiency by Aircraft Type Reducing CO2 emissions boils down to reducing fuel consumption. The most Aircraft for 737-700INT (118 seats) effective methods are: (1) introducing international flights 777-300ER (247 seats) fuel-effi cient engines with the latest 777-200ER (234 seats) 767-300ER (216 seats) technologies; (2) reducing air resistance 747-400 (339 seats) through improved wing designs; and Retired aircraft 747-200B (326 seats) (3) reducing fuselage weight through the use of composite materials. The Aircraft for 737-700 (145 seats) domestic flights DHC8-400 (74 seats) Boeing 787 employs all of these meth- DHC8-300 (56 seats) ods, and ANA was its fi rst buyer in 777-300 (525 seats) July 2004, ordering 50 of them. The A321 (195 seats) 777-200 (382 seats) 787 is expected to reduce fuel con- 747-400D (569 seats) sumption by 20% compared with the A320 (166 seats) current 767-300. F-50 (50 seats) 767-300 288 seats) Fuel effi ciency achieved by utilizing ( 737-500 (126 seats) the latest aircraft is shown on the right 767-200 (234 seats) chart. 747-100SR (536 seats) L1011 (341 seats) 737-200 (126 seats) 727-200 (178 seats) Retired aircraft YS11 (64 seats)

0 0.05 0.1 0.15 0.2 (lbs/nm seat)

CO2 Emissions per Seat for Flights Between Tokyo and New Chitose (kg) B787–3 Approx. 20% reduction from 2008– B767-300 aircraft

B777–300 57.8 1997–

B747–400 64.2 1992–

B767–300 67.8 1987–

B747–100SR 72.8 Retired in 2006

L1011 94.0 Retired in 1995

B727–200 109.1 Retired in 1990

66 CSR Report 2007 ■ Reducing the Environmental Burden

As lower fuel consumption directly sumption even further through various leads to a reduction in greenhouse measures. gas emissions, we consider this an *1 Effi cient Fuel Program important goal for an air transportation company. Since the oil crises Taxiing after landing with some of 1973 and 1979, the ANA Group engines shut down has been developing and imple- To conserve fuel, since 1994 the ANA menting fuel-saving measures. Here Group has been stopping some engines are some recent examples. when taxiing. The decision of whether or not to shut down engines is made after EFP promotion project taking into account the airport, weather, 1 The ANA Group started the EFP* pro- condition of runway and aircraft, and Washing the engine compressor motion project in FY2003. EFP increases instructions from the control tower. fuel effi ciency by optimizing the alti- Prioritized use of Ground Power tude and speed of fl ight plans, while Restoring engine performance by Units considering weather conditions and washing the compressor As an environmental preservation mea- air traffi c control information, and by The more an engine is used, the more sure, ANA has been attempting to informing fl ight crew of the most fuel- dust particles stick to its compressor and reduce its reliance on APUs*2 since effi cient point to initiate descent at degrade performance. To improve fuel 1990. APUs are less energy effi cient each airport. effi ciency, in FY2003 the ANA Group than ground power units (GPUs) as they We monitor the amount of fuel began regularly washing compressors to burn onboard fuel; we thus prioritize saved each month; in FY2006 we saved optimize engine performance. the use of GPUs. In FY2006, this strat- 5,200 kilolitres, a great reduction from As a result of washing 4.5 times egy saved 36,000 kiloliters of fuel— the previous year. This represents the more than in FY2005, some 17,000 enough for a Boeing 777-200 to make amount of fuel required by a Boeing kiloliters of fuel was saved in FY2006— 2,250 round trips between Tokyo and 777-200 to make 330 round trips equivalent to 1,070 round trips Osaka. between Tokyo and Osaka. In FY2007 between Tokyo and Osaka on a Boeing *2 Auxiliary Power Unit: small on-board gas turbine that provides electricity as well as pneumatic pres- we are working to reduce fuel con- 777-200. sure for engine ignition and cabin air conditioning

Pre-ﬂ ight brieﬁ ng

CSR Report 2007 67 Environment環境 Climate Change

■ Reducing the Environmental Burden

RNAV and Conventional Flight Path Reduction of ground energy con- Departure Airway Arrival Arrival sumption (excluding aircraft) ANA has participated in “Team Minus VOR/DME 6%,” Japan’s national global-warming

Runway Runway prevention project promoted by the Ministry of the Environment. Measures we have enforced include setting air- VOR/DME conditioners to a higher temperature VOR/DME in summer (and lower one in winter), VOR/DME (old) airway RNAV (new) airway and encouraging employees to use the stairs instead of elevators. The ANA Group’s energy consump- Operation with RNAV in 1971, when the Civil Aviation Bureau tion can be broken down into aircraft (Area Navigation) approved the YS-11A fl ight simulator as (98%) and ground requirements (2%). The ANA Group offi cially adopted a replacement for actual-fl ight training. In crude-oil equivalence, our ground RNAV (Area Navigation) in June 2002. Since then, due to relaxed regulations energy in FY2006 was 46,000 kiloliters, RNAV is a procedure that navigates air- governing fl ight training and evalua- or approximately half of the annual craft and assures the scheduled fl ight tion, and also due to improvements in power consumption at a major private path by radio-guidance facilities such simulators, almost all fl ight training and railway company in Tokyo. Ground as DME (Distance Measuring Equip- evaluation now takes place in simula- energy consists of electricity (75%), ment) as well as by satellite and tors; the devices are also used for main- automobile fuels, heavy oil, and fuels onboard equipment. Not only does tenance training and evaluation. for heating facilities. RNAV achieve faster and shorter fl ights In FY2006, total simulator use—for After an amendment to the Energy while reducing fuel consumption and training and evaluation of both fl ight Conservation Law took effect in April engine exhaust, it also reduces noise and maintenance crews—amounted to 2006, we took the Ministry of Econ- around airports during the night. The 55,277 hours. If these hours had omy, Trade & Industry designated ANA Group aims to expand the use of been actual fl ight time, they would energy-conservation diagnostic check in RNAV both in Japan and overseas. have required 340,000 kiloliters of fuel the categories of Class 1 Business Site (740,000 tons of CO2). This equals (3,000 kiloliters’ crude-oil equivalent Saving fuel through simulators 10.5% of all aircraft fuel used at energy consumption) and Class 2 Busi- The ANA Group’s use of fl ight simula- the ANA Group in FY2006, or 22,000 ness Site (1,500 kiloliters); the outcome tors to train and evaluate fl ight crew round trips between Tokyo and Osaka was that reducing energy consumption reduces fuel consumption and noise by a Boeing 777-200. The ANA Group through conventional methods was not and helps us make the most of limited will continue to take full advantage of an option. At this time we formulated space. We introduced the devices back fl ight simulators. a 10-year construction plan for energy-

Flight simulator Ground Energy Consumption (crude oil equivalent) Electricity Consumption by Major Offices

1,000kl million kWh 60 35 50 30 25 40 22.0 20 30 19.4 49 45 45 46 15 14.1 20 10 10 5 0 0 2003 2004 2005 2006 FY 2002 2003 2004 2005 2006 FY Information Technology Services Flight Training & Standards Center Airframe Maintenance Center

68 CSR Report 2007 saving facilities aiming for an average Reductions at ANA Catering Service 1% reduction per year. ANA Catering Service is working to save weight by gauging beverage con- Weight reduction measures sumption to determine the amount of Introduction of lightweight water required onboard, and by switch- cargo containers ing to lighter plates. The ANA Group introduced 200 light- Since June 2007 the amount of weight containers for international water onboard has been reduced, and routes in October 2006. These con- the weight of dishware reviewed on Lighter plates tainers, composed mainly of Kevlar®* Japan-outbound Boeing 777-300ERs. (excluding the base and frame) and Meanwhile, by changing loading pro- canvas (opening), are some 28 kg cedures for long-haul routes on lighter than standard types. the Boeing 777-300ER, two half- On the Narita–San Francisco route, sized-carts full of goods, weigh- where they are used mainly, up to ing some 80 kg in all, were 1,232 kg is saved per Boeing 777-300. not loaded. This represents a potential reduction of Further, a switch to 495 liters, or approximately 2.5 fuel lighter plates is being pro- drums (1,220 kg of CO2), each way moted. On the Boeing on the Narita–San Francisco route. The 737-700ER ANA Busi- ANA Group currently has 600 of these nessJet, inaugurated containers in operation. on the Narita-Mum- bai route in Septem- ber 2007, only lightweight plates are used. And since June 2007, hard liquor has been served in smaller bottles, saving an average 300g per cart.

New lightweight container

Container Material and Weight Comparison Lightweight Standard Kevlar® 70％ Material Canvas 5％ Aluminum 100％ Aluminum 25％ Weight 71kg 99kg

* Kevlar® is a registered trademark of DuPont U.S.A.

ANA BusinessJet

CSR Report 2007 69 Environment環境 Air Pollution

Air pollution generated by ANA ■ Aircraft Emission Standards Group operations consists mainly of aircraft and automobile In its Annex 16, the International Civil or density) of aircraft exhaust emitted exhaust. While already in Aviation Organization (ICAO) lists the during the LTO cycle that simulates compliance with international emission standards for NOx (nitrogen aircraft landing and takeoff. Appendix standards and Japanese oxide), HC (hydrocarbon), CO (carbon III of the Enforcement Regulation of regulations, the ANA Group is monoxide) and SN (smoke number, Japan’s Civil Aviation Law also contains actively promoting the ICAO Landing / Take-off Cycle the same standards, entitled “emission deployment of lower-emission standards for aircraft operations.” aircraft and automobiles. Approach

Climb Taxi 3000 ft

Takeoff

Thrust setting (%) Time in mode (min) Takeoff 100 0.7 Climb 85 2.2 Emission levels are measured during the LTO cycle, which is defined as a descent from 3,000 ft to the ground and an Approach 30 4.0 ascent to 3,000 ft after takeoff. Engine tests are subject to Taxi/Idle 7 26.0 the operating modes and times on the left chart.

■ Low-Emission Aircraft

The ANA Group’s most effective mea- Engine Exhaust Levels (FY2006) 1,000 tons sure to reduce hazardous exhaust from ANA Group ANA NOx (nitrogen oxide) 6.5 5.6 aircraft has been to deploy the latest, HC (hydrocarbon) 1.1 1.0 most advanced aircraft. Emissions of CO (carbon monoxide) 6.0 5.1 aircraft currently in use at the ANA Group are all within ICAO emission standards.

■ Fuel Dumping for Unscheduled Landings

Mechanical malfunctions or passengers that has minimal impact on the ground. requiring immediate medical care often No fuel was dumped in FY2006. necessitate unscheduled landings. In such circumstances, the aircraft inevita- Frequency and Quantity of Fuel Dumping

bly needs to dump fuel to reduce its kl Times 800 16 weight and ensure a safe landing. Dif- 600 12 ferent airports designate speciﬁ c dumping locations and altitudes, such as over 400 8 oceans, to avoid dumping fuel over 200 4 0 0 urban areas. When dumped at high 91 92 93 94 95 96 97 98 99 00 01 02 03 0405 06 altitude, fuel turns into a diffuse mist Quantity（kl） Frequency FY

70 CSR Report 2007 ■ Protective Measures for the Ozone Layer

Ozone depleting substances include Replacement of GSE* cars cles, forklifts, and so on at domestic fl uorocarbons, hydro fl uorocarbons, In line with ANA’s attempt to update airports. methyl chloroform, trichloroethane and its automobile fl eet, GSE cars utilizing The ANA Group has made efforts to carbon tetrachloride. The ANA Group fl uorocarbons for air conditioning have renew its automobile fl eet with lower- has promoted the use of alternatives been replaced with alternatives. Fur- pollution vehicles. In all, 459 low-pol- to ozone-depleting substances and thermore, all vehicle maintenance com- lution vehicles are in use, some 15% improvements in the way such sub- panies at the ANA Group are licensed of the total. This met the target stipu- stances are handled. As a result, the to handle fl uorocarbon recovery. lated in our Ecology Plan 2003–2007 ANA Group does not use any des- * Ground Service Equipment (14.5%; twice the fi gure from the end ignated fl uorocarbons in its aircraft of FY2002). The breakdown of low- equipment or buildings. Halon fi re extinguishers in ANA pollution vehicles is as follows: 17.5% buildings are electric cars, natural gas cars and Halon recovery equipment Halon fi re extinguishers are installed in hybrid cars, while 82.5% are low-emis- Halon fi re extinguishers installed in the transformer rooms and computer sions cars (certifi ed for low fuel con- engine rooms, cargo holds and pas- rooms of ANA buildings. In developing sumption and low emission). During senger cabins are inspected and new buildings or refurbishing existing FY2007, 13 conventional forklifts at maintained regularly by companies con- ones, ANA uses halon-free extinguish- Hakodate, Niigata, Hiroshima, Oita and tracted for this purpose. By introducing ers. Also, the handling of fi re extin- Kansai airports were replaced with elec- halon recovery equipment, the ANA guishers is fully managed so as to avoid tric (battery-powered) ones. Group has eradicated halon release into inadvertent emission other than during * Suspended Particle Matter the atmosphere during inspection and emergencies. maintenance procedures. Countermeasures Against Vehicle Aircraft cleaning agents Pollution (NOx, SPM*) Designated fl uorocarbons and trichloro- At the end of FY2006, the ANA Group ethane, which were previously used in was using 3,072 vehicles of various aircraft maintenance, were eliminated types throughout Japan including gen- in 1994 and replaced by alternative eral automobiles as well as tow trucks, cleaning agents. power unit vehicles, maintenance vehi-

Switching to Electric Forklifts —New Kansai International Airport Service As part of its environmental measures, New Kansai International Airport Service is switching from diesel-powered forklifts to electric ones for cargo handling at Kansai Interna- tional Airport. In FY2006, four diesel-powered forklifts were replaced with electric ones, which now Electric forklifts account for 14 of the 48 forklifts in use. By introducing these and other environment-friendly vehicles, such as electric towing tractors, the company reduced its CO2 emissions by 2.4 tons over FY2005.

CSR Report 2007 71 Environment環境 Noise

The ANA Group’s measures to ■ Aircraft Noise reduce aircraft noise have resulted in our entire fl eet conforming to In its Annex 16, the ICAO (International dard—effective for new aircraft after Chapter 4, the strictest ICAO noise Civil Aviation Organization) specifi es January 1, 2006—being the strictest to standard. the noise standard for subsonic jet air- date. Our Chapter 3-compliant aircraft craft. The initial Chapter 2 standard were retired in March 2006, bringing was followed by the Chapter 3 stan- our entire fl eet up to the stricter Chap- dard, with the latest Chapter 4 stan- ter 4 standard.

■ Improved Flight Procedures

ANA has been examining various the airport, then descending continu- ﬂ ight procedures—such as maintaining ously—to decrease the noise reaching a high altitude until approaching the ground.

ANA’s Main Noise Abatement Procedures Procedure Description Takeoff Steepest climb procedure Continue a steeper takeoff climb to a higher altitude than usual (to 3,000 ft.), so as to keep noise contained to as small an area possible, while controlling noise by attaining high altitude in residential areas. Landing Delayed flap-down approach Delay flap-down and landing-gear-down operations to reduce air resistance to the airframe, procedure so as to decrease engine thrust requirement, thereby reducing noise. Low flap angle landing procedure Set smaller flap angle for use during final approach to reduce air resistance to the airframe, so as to decrease engine thrust requirement, thereby reducing noise. Landing Preferential runway procedure If one side of runway does not have a residential area, then perform takeoff and landing in and the preferred direction, wind direction and lower velocity permitting. takeoff Preferential flight path procedure In the airport vicinity (at lower altitude), select flight paths that pass over rivers or that cir- cumvent residential areas as much as possible. V-NAV approach continuous During descent, maintain higher altitude until the vicinity of airport, then continuously de- descent procedure scend so as to control the change in the engine thrust, thereby abating noise. This procedure can save fuel as well. FMS/LLZ flight procedure Use FMS/LLZ-RNAV in the airport vicinity and fly while avoiding residential areas and shortening flight path. In the case of late-night landing at Haneda Airport, avoid passing through Kisarazu (land area) and approach via shortcut over the ocean.

■ Reducing Ground Noise

ANA’s engine testing facilities are equipped to reduce noise: the one at Osaka International Airport has sound- proof walls, while Narita International Airport has a noise-reduction hangar. In addition, by making procedures more efﬁ cient, we have shortened the

duration of test runs that must be car- Noise reduction hanger at Narita Airport ried out following maintenance, further reducing ground noise.

72 CSR Report 2007 Resource Recycling

To ease the environmental impact ■ Ticketless SKiP Service of our activities, we are promoting the “3Rs*”, reducing Our innovative approach to ticketing tinue to promote the adoption of its the use and emission of hazardous is helping to reduce the 180 tons of eco-friendly SKiP Service; by the end of chemicals, and implementing paper used to print airline tickets each 2007, domestic service will have com- green purchasing. year. In October 2006 ANA launched its pletely switched to e-tickets. * Reduce, Reuse, Recycle SKiP Service, a system that stores ticket information in a cell phone or special card, which passengers then swipe over a SKiP reader at the airport—greatly increasing convenience while decreasing paper consumption. ANA will con-

■ Promoting Recycling

Used uniforms of cabin attendants and Reduce, Reuse, and Water Conservation ground staff are converted back to fi ber Industrial Waste and recycled as noise absorbents in Revision of method for measuring the aircraft’s center of gravity (Measurement without discarding fuel on board) Recycling and reuse of aircraft tires (up to six times) automobiles. Other 3R efforts include Recycling and reuse of aircraft windows (Development of repair procedure) scrapping in-fl ight meal menus in Econ- Purification of paint thinner and other solvents used in aircraft painting work by contracted company for reuse omy Class in favor of illustrated circu- Reuse of activated carbon used in cabin air conditioning systems and treatment of the wastewater (intermediate water) from aircraft hangars lars, and reusing aircraft tires. Reduction of detergents for cleaning engine parts by using ultra-high pressure water spray General Waste In FY2007, we plan to recycle paper Presorted collection of cabin refuse (empty bottles and cans), and reduced volume of on-board waste from our infl ight magazine, Wingspan, (ANA: Installation of a trash compactor on some aircraft on international routes) along with other materials to make Review of inflight service items (types and quantities) (Termination of inflight meal menu card in Economy Class) ANA offi ce envelopes and the maga- Water Conservation zine itself. Use of rainwater and treated kitchen wastewater (intermediate water) at 50,000 tons a year

Recycle Product Material Volume Aircraft engine parts, aluminum scraps from repairs, etc. Metal materials 23.4 tons (¥11.59 million)/fiscal year

Vinyl sheets for protection of cargo from rain and dust (Haneda) Solid fuel and garbage bags

Used ticket stubs (All airports in Japan) Toilet paper

Inflight magazines and timetables Paper materials

■ Green Purchasing

ANA has been promoting the electronic Green Purchasing Ratio

% purchase of goods including ofﬁ ce sup- 100

CA uniform Target in FY2007 plies, and using it to promote green 80 purchasing. In FY2006, our green pur- 60 40 78% 75% chasing ratio for ofﬁ ce supplies was 62% 74% 75% and that for ofﬁ ce paper was 20 0 97%. 2003 2004 2005 2006 FY

CSR Report 2007 73 Environment環境 Reducing Hazardous Chemicals

Substances containing chemicals ■ Compliance with PRTR Law deemed potentially harmful to the environment are used in ANA uses approximately 2,000 differ- tity, composition and usage status. ANA the maintenance of ANA Group ent products containing PRTR*1-regu- has been attempting to extend this aircraft; these include washing lated substances, most of which are system throughout the Group. liquids, de-icing agents and paints. employed in aircraft maintenance. The In FY2006, the ANA Group used We are replacing these substances use of such products, however, is 32 such substances; total consump- with those free of hazardous extremely low compared with the man- tion*2 was 21.5 tons, some 20% chemicals and reﬁ ning ufacturing industry. To manage and less than FY2005. The reason for this methodologies to lessen our conduct the required registration of decrease was our conversion to alterna- impact on the environment. these products, we have created a tive substances, along with the fact that uniﬁ ed inter-company database that FY2006 did not call for the periodic groups them according to type, quan- replacement of solvents. The ANA Group will continue to Type 1 Designated Chemical Substances over 500kg Used by ANA Group (FY2006) reduce its dependence on these sub- Volume rank Item Purpose of usage CAS No. Improvements, etc. stances given their potentially negative Reduced by preventing steam diffusion and collecting liquid 1Trichloroethylene Steam washing before plating 79-01-6 impact on the environment, and con- solution Replaced most parts with non-chlorine-based agent tinue to study alternative materials and 2 Dichloromethane Paint removal 75-09-2 alternatives (E-1092T) methods. 3Toluene Solvent used for paint 108-88-3 *1 Pollutant Release and Transfer Resister, managing 4Tributyl phosphate Hydraulic aircraft fluid 126-73-8 the discharge and disposal of special chemicals controlled by law 5 Xylene Solvent used for paint 1330-20-7

6 Phenol Paint removal 108-95-2 Less than 1 ton *2 Total of discharge and disposal

■ Aircraft Washing and Discharged Water Processing

At Narita and Haneda airports, aircraft water, were required. After each wash- ANA Group Water Usage and Frequency of Aircraft Washing are washed at night. The growth of ing, water is treated at the airport’s 1,000 tons Frequency 15 800 ANA Group ﬂ eets in FY2006 meant treatment facility and then discharged 713 that more washings, and thus more into the public sewage system. 12 700 11.4 9 600

6 500

3 400 0 300 95 96 97 98 99 00 01 02 03 04 05 06 FY Water consumption Frequency

■ Anti-freezing and De-icing Agents

For safety reasons, aircraft are not per- anti-freezing agents to propylene glycol Propylene Glycol Consumption and Frequency of De-icing and Anti-freezing mitted to take off with snow or ice on (not subject to PRTR Law) in 1996, kl Frequency 1,500 10,000 the wings or fuselage. Snow is removed and has made efforts to develop better 1,333 using large amounts of hot water or equipment and work procedures to 1,200 8,000 900 6,000 compressed air, followed by the appli- reduce the amount of anti-freezing 6,073 600 4,000 cation of an anti-freezing agent. The agent required. 300 2,000 ANA Group switched from previous 0 0 9293 94 95 96 97 98 99 00 01 02 03 0405 06 FY Propylene glycol consumption Frequency

74 CSR Report 2007 Environmental Contributions

The ANA Group is actively ■ Forestation involved in various environmental conservation activities, such as the Six Locations Forested in FY2006 that aims to promote forestation and Aozora Project, with “For People The main cause of global warming forest management activities in areas and the Planet” as our slogan. is the massive amount of CO2 emis- surrounding the 50 domestic airports sions caused by man. Forests “purify” serviced by the ANA Group. During the air by absorbing this CO2 and FY2006, we held forestation activities restoring oxygen. Our wish is to gradu- in Itohara Kaigan Forest, Yaotsu Forest, ally expand our forests by reviving areas Kirishima Forest, Yusuhara Forest and previously deforested by ruthless log- Sakurajima OISCA Forest. ging and natural disasters, and by for- esting as-yet bare lands, to help the Gradually Restoring Japan’s Forests global environment. According to the Forestry Agency, The Aozora Forestation Project, realizing the government’s pledge to begun in 2004, is a 10-year plan reduce Japan’s greenhouse emissions Chiang Mai forestation (Thailand) by 6% will require that over half the reductions—3.8%—come from well- maintained woodlands and forests. Sta- tistics from the Forestry Agency state that the trees in Rankoshi Forest can currently absorb 40 persons’ worth of CO2 emitted in one year, and the Yugashima Forest, 11 persons’ worth. It takes time for a seedling to grow and become part of a forest. It also Rankoshi Forest takes careful tending such as thinning ANA Aozora ("Blue Sky") Forests (Japan) and weeding. The ANA Group will con- Name Nearest Airport Launch Date Location tinue working with local governments 1 Amagi Yugashima Forest Haneda 4/17/2004 Izu, Shizuoka and forestry cooperatives to gradually 2 Onocho Kijihiki Forest Hakodate 5/16/2004 Hakodate, Hokkaido expand the forests of Japan. 3 Rankoshi Forest New Chitose 7/3/2004 Chitose, Hokkaido 4 Kitagocho Hanatate Forest Miyazaki 10/31/2004 Minaminakagun, Miyazaki 5 OISCA Forest Matsuyama 3/27/2005 Matsuyama, Ehime People and Forests 6 Koyasan Genji Forest Kansai 4/10/2005 Itogun, Wakayama Aozora juku (open-air classes) are held 7 Ajisu Forest Yamaguchi Ube 5/28/2005 Yoshikigun, Yamaguchi with assistance from the Field Science 8 Shibechacho Shitsugen Forest Tancho Kushiro 5/29/2005 Kawakamigun, Hokkaido Education and Research Center of 9 Shinshu Forest Haneda 7/16/2005 Kamiminochigun, Nagano Kyoto University. What better place to 10 Asahi Forest New Hiroshima 8/20/2005 Miyoshi, Hiroshima learn about the value of our environ- 11 Niyodogawa Forest Kochi Ryoma 10/22/2005 Agawagun, Kochi 12 Kitagocho Hachi no Su Forest Miyazaki 10/30/2005 Minaminakagun, Miyazaki ment than in the midst of a cool green 13 Itohara Kaigan Forest Oita 5/13/2006 Kunisaki, Oita forest? 14 Yaotsu Forest Chubu 10/21/2006 Kamogun, Gifu The ANA Group will pursue its 15 Kirishima Forest Kagoshima 10/28/2006 Kirishima, Kagoshima long-range forestation plan in hopes 16 Yusuhara Forest Kochi Ryoma 11/11/2006 Takaokagun, Kochi of strengthening the bond between 17 Sakurajima OISCA Forest Kagoshima 3/3/2007 Kagoshima, Kagoshima people and forests, and of passing our (Overseas) natural resources on to the next gen- 1 Community Forest for Shwehlaing, Myanmar 8/1/2005 Nyaung Oo Pyun and Kasauk Villages eration. 2 Phuket OISCA Forest Thailand 11/21/2005 Saranrom, M.Banpee 3 Aozora OISCA Chiang Mai Forest Thailand 8/24/2006 Moobaan, M2 T. Sa Ha Korn Primary School 4 Chai Nat OISCA Forest Thailand 8/27/2007 Chai Nat Province

CSR Report 2007 75 Environment環境 Environmental Contributions

■ Okinawa Coral-Planting

Team Tyura Sango including Edakomon and Shoga. At Like elsewhere around the globe, coral fi rst, the freshly planted coral was fair reefs in Okinawa are suffering from game for the fi sh, but by attaching pro- rising water temperatures, crown-of- tective nets, the survival rate jumped to thorns starfi sh, and the outfl ow of red about 90%. clay. To combat these threats and revive To spread the word about our coral- the beautiful seas of Okinawa, ANA planting activities, we hold an annual Coral planting joined forces with 13 other corpora- “Coral Forum.” For the latest install- tions and formed “Team Tyura Sango” ment, held on July 16, writer C.W. Nicol in 2004. Four times a year, in the and Rikkyo University Professor Osamu spring and fall, volunteer divers hand- Abe were invited to what became a plant coral grown in Onnason, Oki- very informative session on coral con- nawa according to guidelines set by the servation and the beauty and impor- Japanese Coral Reef Society. In FY2006, tance of Okinawa’s nature. more than 200 volunteers took part, Team Tyura Sango website: http://www.tyurasango.com planting a well-balanced mix of corals Coral Forum

■ Environmental Picture Book Competition

4th Aozora (“Blue Sky“) Environ- mental Picture Book Competition The Aozora (“Blue Sky”) Environmental Picture Book Competition, begun in 2003, aims to teach and inspire future generations about the value of nature. As with previous contests, submissions were received from a broad range of ages (6 to 66) and locations (10 countries, plus 30 prefectures and regions in Japan). After careful consideration, the reviewing committee, led by writer C.W. Nicol, selected

Niigata resident Nozomi Watanabe’s Award Ceremony for the Fourth Aozara Environmental Picture Book Competition work, entitled Precious Things, as the fi rst-prize winner. Guam resident Kohei The winning story was published as Sawada’s Sea Turtle’s Tears and UK resi- a bilingual (Japanese/English) book. A dent Jane Veveris Callan’s The Little Star total of 100,000 copies were distrib- and the Wise Old Mouse were chosen uted for free aboard ANA Group fl ights, for special prizes; 37 other works also at branch offi ces in Japan and abroad, received awards and prizes. and at many kindergartens and schools.

First Prize winner Precious Things

76 CSR Report 2007 Global Initiative

The ANA Group believes that ■ Kyoto Protocol and the Air Transport Industry global environmental issues must be tackled by the global air The Kyoto Protocol includes domestic been a main theme of international transportation industry as a fl ights but excludes international fl ights conferences held by IATA*2, an inter- whole. And we are one of in each country’s data for greenhouse national organization of airlines, and the airlines leading the way, gas emissions. Instead, air and marine AAPA*3, that of civil airlines in the Asia playing an active role at every transport industries are urged to Pacifi c region, along with safety and opportunity. respond on their own initiative. In the security. air transport industry, the ICAO*1 is *1 ICAO: International Civil Aviation Organization engaged in serious debate to form the *2 IATA: International Air Transportation Association *3 AAPA: Association of Asia Pacifi c Airlines framework requested by the Kyoto Pro- tocol. In addition, the environment has

■ Debate on Emissions Trading

In December 2006, the Council of the sions Trading Guidance. The air trans- European Union published a draft direc- port industry unanimously agrees that tive to include the aviation sector in market-based emissions trading is the its European Emission Trading Scheme most effective environmental measure, (EU-ETS). As a global issue, climate and looks forward to its early adoption. change should be handled by the ICAO, a global organization; the draft by the EU, a regional organization, naturally has limitations. In addition the ICAO needs to create a framework that can win backing from as many countries IATA Environmental Communications Campaign as possible and consider issues such as developing countries—an endless topic surrounding the Kyoto Protocol. In February 2007, the ICAO’s Committee on Aviation Environmental The Seventh Conference of the ICAO Council’s Committee on Protection (CAEP) formulated the Emis- Aviation Environmental Protection, held in February 2007

■ The Air Transport Industry and ANA

With sales of US$3 trillion and employ- ANA is shouldering its responsibility ing 29 million people, the air transport as an air transportation provider by industry greatly contributes to the world recommending measures that reduce economy and accounts for 8% of its the industry’s environmental impact, GDP. The industry produces 2% of total including emissions trading and active CO2 emissions—a cause of concern for carbon management. This involvement global warming—and according to a has made us one of the world’s leading special report by the IPCC*4, its CO2 environment-friendly airlines. share in 2050 is estimated to be 5%. *4 IPCC: International Panel on Climate Change

CSR Report 2007 77 Environment環境 ANA Group Environmental Data

The ANA Group’s impact on the environment and society is reported here quantitatively based on data we have compiled for FY2006.

ANA ANA Ratio over the previous 1 Units ANA Group Environmental Data (FY 2006* ) Internal Group year (ANA Group) Ozone depletion Halon and fluorocarbon (aircraft) Amount of discharge kg 0 0 ─

Water resources Total water usage (buildings) 10,000 tons 40.0 48.4 102% Waterworks 10,000 tons 36.2 44.1 Recycled water 10,000 tons 3.8 5.0 Rate of recycled water usage 9% 10%

Eco-system Water pollution Total waste treatment (buildings) 10,000 tons 4.7 5.4 158% related Industrial waste 10,000 tons 1.9 2.7 environmental issue Cafeteria waste 10,000 tons 2.8 2.8 Aircraft anti-ice agent usage kl 1,333 1,333 90% Toxic substance Amount of PCB storage ton 4.2 4.4 100%

Global Deforestation Total paper consumption ton 6.192 11,370 110% warming Total paper for photocopies (purchased) ton 308 480 Percentage of recycled paper use 97% 85% Inflight magazines, posters and pamphlets ton 5.711 10,890 Energy Total energy consumption (crude oil equivalent) crude oil 10,000 kl 268 316 104% Aircraft energy consumption crude oil 10,000 kl 264 312 Ground energy consumption*2 crude oil 10,000 kl 3.9 4.8 Total aircraft fuel consumption 10,000 kl 278.5 329.1 104% Consumption per seat-kilometer l/100ASk 3.62 3.66 Building power consumption 10,000 kWh 12,435 14,088 Vehicle fuel consumption 10,000 kl 0.2 0.4 Facility fuel consumption 10,000 kl 0.3 0.4 Total gas consumption 10,000 m3 35.9 67.3 Energy supply 10,000 MJ 3.4 3.5 Air pollution Total number of vehicles/aircraft Aircraft aircraft 152 211 110% Motor vehicles cars 1,457 3,072 110% Low-emission vehicles cars 210 459 Ratio of low-emission vehicles 14% 15%

Total carbon dioxide (CO2) emissions 10,000 ton-CO2 693 819 104%

Aircraft (total carbon emissions) 10,000 ton-CO2 686.3 810.9 104% Aircraft (emissions per seat-kilometer) g-C/ASK 24.4 24.6 101%

Ground equipment and vehicles (total emissions) 10,000 ton-CO2 6.4 8.3 106% Nitrogen oxide (NOx) (Aircraft – amount of emissions in LTO cycle) 10,000 ton-NOx 0.52 0.64 105% Hydrocarbon (HC) (Aircraft – amount of emissions in LTO cycle) 10,000 ton-HC 0.10 0.11 100% Carbon monoxide (CO) (Aircraft – amount of emissions in LTO cycle) 10,000 ton-CO 0.51 0.60 103% Fuel dumping for emergency landing (Aircraft – total amount) kl 0 0 ─ Number of fuel dumping times 0 0 ─

Waste Total waste 10,000 tons 2.17 2.24 102% In-flight operations-Total cabin waste and sewage 10,000 tons 1.90 1.90 107% Ground operations-Total ground waste 10,000 tons 0.27 0.34 82% Subtotal of general waste 10,000 tons 0.17 0.19 Subtotal of industrial waste 10,000 tons 0.10 0.15

*1 The data shows ANA and the ANA Group companies (Air transportation, Maintenance, Ground handling, Vehicle maintenance, etc.) in FY2006. Does not include data for all ANA Group companies. *2 Power supplied to parked aircraft from ground included

78 CSR Report 2007 ■ Energy Consumption and CO2 Emissions

Summary Annual Energy Consumption (crude oil equivalent) Breakdown of Ground Energy Consumption The ANA Group’s core operation being Ground energy consumption Heavy oil for facilities air transport, 98% of its energy con- 46,000 kl and equipment 2% 2% Gasoline for vehicles sumption is jet fuel. 1% The remaining 2% consumed on Natural gas 2% the ground is still signiﬁ cant—equivalent to 46,000 kiloliters of crude Jet fuel oil—and of that, 75% is electricity 3,120,000 kl 98% Kerosene, etc. (approximately 140 million kWh). This for facilities and equipment equals approximately half of the total 6% annual power consumption at a major The ANA group’s total energy consumption is 3,166,000 kl (crude oil equivalent). Diesel oil for vehicles Electric power private railway in Tokyo. 12% 77%

Transition Aircraft Energy Consumption Consumption of jet fuel, our main CO2 Emissions from Aircraft Breakdown of Electric Power Consumption by Office 10 kilotons form of energy, increased by 4% over 1,000 Information FY2005 for all ANA Group domestic Other Technology 799 811 48% Services 800 784 767 776 and international fl ights. CO2 emissions 17% 715 685 686 also increased by 4%. 663 661 600 Flight Training Center Ground Energy Consumption 15% Ground energy consumption*1 totaled 400 46,000 kiloliters (crude oil equivalent), 200 about the same as in FY2005. Airframe Consumption of electric power, Tokyo Airport Office Maintenance 0 (Haneda) Center 9% 11% which accounts for approximately 80% 20022003 20042005 2006 FY of ground energy, increased by 4% ANA Group ANA over FY2005. The four major offi ces of Information Technology Services, Flight Training & Standards Center, Airframe Ground Energy Consumption (crude oil equivalent) Breakdown of Electric Power Consumption by Office (FY2006) 10,000 kl: crude oil equivalnt Million kWh Maintenance Center and Tokyo Airport 6 Information Technology Services (Haneda, Tokyo) 22.0 Offi ce (Haneda) accounted for 52% of Flight Training & Standards Center (Haneda, Tokyo) 19.4 5 4.9 ANA Group power usage. 4.5 4.6 4.6 Airframe Maintenance Center (Haneda, Tokyo) 14.1 Tokyo Airport Office 11.9 4 *1 By the ANA Group offi ces, excluding power sup- Chitose Airport Office 7.1 plied to parked aircraft from ground Kansai Airport Office 6.7 3 Narita Airport Office 6.7 Power Plant Maintenance Center 5.9 2 Narita Line Maintenance 5.5 ANA Aircraft Maintenance Co., Ltd. (Itami, Osaka) 5.0 1 Osaka Airport Office 4.0 Chubu Airport Office 2.5 0 2003 20042005 2006 FY 051015 20 25

CSR Report 2007 79 Environment環境 ANA Group Environmental Data

■ Derivation of Waste

Summary Transition The ANA Group produced approximately Approximately 38% of industrial Our waste increased by 300 tons (2%) 22,400 tons of waste. Of this, general waste was plastic. Reduction of waste over FY2005. Though aircraft waste waste from aircraft (toilet sewage and plastic is an important subject in pro- (e.g., toilet sewage) increased, there cabin refuse) accounted for 82%. The moting reduction of derivatives. was a decrease in general and industrial rest came from ground operations. waste.

Waste Produced Breakdown of Waste Breakdown of Industrial Waste

tons Acidic substances 25,000 22,400 １% 22,100 Industrial waste Plastics 1,500 Volatile oils, etc. 20,800 2,100 8% 38% 19,700 4% 20,000 2,100 1,900 1,600 2,200 General waste Wood 3,000 2,600 10% 10% 15,000 Oil Cabin refuse Toilet sewage 10% 18% 64% 10,000 19,000 17,800 Metals 15,500 15,700 15%

5,000 Alkali substances Sludge Waste in FY2006: 22,400 tons 10% 12%

0 Industrial waste in FY2006: 1,500 tons 2003 20042005 2006 FY General waste (aircraft) General waste (ground) Industrial waste

■ Paper Consumption

Summary Paper Consumption Breakdown of Paper Consumption The ANA Group consumed 11,370 tons tons of paper. Of this, 96% was used for 14 Offices business activities such as publishing 12 11.4 0.4 4% 10.5 0.4 0.2 timetables, pamphlets, posters and the 0.8 0.3 0.2 10 9.5 0.5 infl ight magazine. The percentage of 0.2 1.8 0.4 1.7 8 paper used for photocopying in our 1.8 2.5 3.0 offi ces represented 4% of the total, or 6 approximately 480 tons. While this is 2.5 a considerable amount, 75% was recy- 4 5.2 5.2 Direct sales activities 2 4.3 cled paper. 96% 0 Transition 2004 2005 2006 FY Pamphlets Timetables Inflight magazines FY2006 paper consumption increased Calendars Tickets Photocopying by 10% to 11,370 tons, the major factor being an increase in infl ight magazines and timetables.

80 CSR Report 2007 ■ Ground Vehicles

Summary Total Number of Vehicles Breakdown of Low-Emission Vehicles

The 3,072 motor vehicles, including cars those leased, in service at ANA Group 3,500 gasoline/diesel-powered 3,072 hybrid 3,000 2% (10 cars) companies also have a signiﬁ cant 2,790 impact on the environment. Of these 2,500 2,265 vehicles, 86% are non-registered and 2,126 used in limited areas at airports, mainly 2,000 for ground handling. 1,500

1,000 Transition electric-powered gasoline/diesel-powered, 500 459 low-pollution low-emission New data from ﬁ ve ground-handling 269 178 252 15% (70 cars) 83% (379 cars) companies at regional airports around 0 Japan were added to the total, result- 2003 20042005 2006 FY Number of low-emission vehicles Total number of vehicles ing in an increase of 282 vehicles over FY2005. The number of low-emission vehicles increased by 190, to 459. These account for 15% of all vehicles. Breakdown of Vehicles in Service

Registered 14%

Non-registered 86%

Vehicles in service for FY2006 totaled 3,072, including leased ones.

CSR Report 2007 81 Third-Party Assessments

■ Inclusion in FTSE4Good Index

In September 2006, ANA was selected and prevention of corrupt practices for inclusion in the FTSE4Good Index*, such as bribery. an internationally recognized index of corporate social responsibility invest- * The FTSE4Good Index is one of two major international indices for socially responsible investment ment. For inclusion, companies must (SRI). FTSE is an independent company owned meet evaluation criteria in the fol- by the Financial Times and the London Stock Exchange. It creates and manages indices measur- lowing areas: environmental conserva- ing the performance of companies by business, tion activities, support of human rights, ﬁ nancial, and other criteria. positive relationships with stakeholders,

FTSE4Good certiﬁ cation

■ AAA Rating from Innovest

In FY2006, U.S.-based Innovest Strate- the 16 airlines rated in 2006, only gic Value Advisors, which rates more four received this rank. We are pleased than 2,000 corporations around the that our advanced sustainable manage- world on environmental and social ment strategy earned us the top rating aspects, gave ANA the Triple A (“AAA”) among airlines in Asia and the United rating, its highest of seven ratings. Of States.

Innovest FY2006 rating (excerpt)

■ Environmental Communication Awards

The ANA Group CSR Report 2006 received an award of excellence in the environmental report category of the Tenth Environmental Communication Awards, in which the non-proﬁ t organization Global Environmental Forum and the Ministry of Environment recognize corporations and organizations practicing excellent environmental communication. The Tenth Environmental Communication Awards Ceremony

ANA Group CSR Report 2006

82 CSR Report 2007 GRI Content Index

Pages Pages 1. Strategy and Analysis 5. Economic Performance Indicators 1.1 Statement from the most senior decision-maker of the organization (e.g., CEO, 【Economic Performance】 chair, or equivalent senior position) about the relevance of sustainability to the EC1 Direct economic value generated and distributed, including revenues, operating organization and its strategy 4,5 costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments 36 2. Organization Profile 2.1 Name of the organization 13 6. Environment Perfomance Indicators 2.2 Primary brands, products, and/or services 12 【Materials】 2.3 Operational structure of the organization, including main divisions, operating EN1 Materials used by weight or volume 65,78 companies, subsidiaries, and joint ventures 12,13 【Energy】 2.4 Location of organization’s headquarters 13 EN3 Direct energy consumption by primary energy source 78,79 2.5 Number of countries where the organization operates, and names of countries EN4 Indirect energy consumption by primary source 78,79 with either major operations or that are specifically relevant to the sustainability EN5 Energy saved due to conservation and efficiency improvements 59,65,66,67,68,69 issues covered in the report 14,15 EN6 Initiatives to provide energy-efficient or renewable energy based products and 58,59 2.6 Nature of ownership and legal form 13 services, and reductions in energy requirements as a result of these initiatives 65,66,67,68,69 2.7 Markets served (including geographic breakdown, sectors served, and types EN7 Initiatives to reduce indirect energy consumption and reductions achieved. 58,59,79 of customers/beneficiaries). 14,15 【Water】 2.8 Scale of the reporting organization, including: number of employees; net sales EN8 Total water withdrawal by source 78 (for private sector organizations) or net revenues (for public sector EN10 Percentage and total volume of water recycled and reused 78 organizations); total capitalization broken down in terms of debt and equity (for 【Biodiversity】 private sector organizations); and quantity of products or services provided 13 EN12 Description of significant impacts of activities, products, and services on 2.10 Awards received in the reporting period 32,33,37,82 biodiversity in protected areas and areas of high biodiversity value outside protected areas. 75,76 3. Report Parameter EN13 Habitats protected or restored 75,76 【Report Profile】【Emissions, Effluents, and Waste】 3.1 Reporting period (e.g., fiscal/calendar year) for information provided 3 EN16 Total direct and indirect greenhouse gas emissions by weight 58,59,65,66,78,79 3.4 Contact point for questions regarding the report or its contents Cover EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved 58,59,65,66,78,79 【Report Scope and Boundary】 EN19 Emissions of ozone-depleting substances by weight 70 3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, EN20 NOx, SOx, and other significant air emissions by type and weight 70,71 joint ventures, suppliers) 3 EN22 Total weight of waste by type and disposal method 78,80 3.11 Significant changes from previous reporting periods in the scope, boundary, or EN23 Total number and volume of significant spills. 70 measurement methods applied in the report 3 【Products and Services】【GRI Content Index】 EN26 Initiatives to mitigate environmental impacts of products and services, and extent 3.12 Table identifying the location of the Standard Disclosures in the report 83 of impact mitigation 56～81 【Compliance】 4. Governance EN28 Monetary value of significant fines and total number of non-monetary sanctions 【Governance】 for non-compliance with environmental laws and regulations 57 4.1 Governance structure of the organization, including committees under the 【Overall】 highest governance body responsible for specific tasks, such as setting strategy EN30 Total environmental protection expenditures and investments by type 63 or organizational oversight 18,19 4.2 Indicate whether the Chair of the highest governance body is also an executive 7. Labour Practices and Decent Work Indicators officer (and, if so, their function within the organization’s management and LA7 Rates of injury, occupational diseases, lost days, absenteeism, and total number the reasons for this arrangement). 19 of work-related fatalities by region 52 4.3 For organizations that have a unitary board structure, state the number of LA8 Education, training, counseling, prevention and risk-control programs in place to members of the highest governance body that are independent and/or assist workforce members, their families, or community members regarding non-executive members. 18 serious diseases 52 4.4 Mechanisms for shareholders and employees to provide recommendations or LA9 Health and safety topics covered in formal agreements with trade unions 52 direction to the highest governance body 37,53 LA11 Programs for skills management and lifelong learning that support the continued 4.8 Internally developed statements of mission or values, codes of conduct, and employability of employees and assist them in managing career endings. 50 principles relevant to economic, environmental, and social performance 2,16,17,18,19,26 and the status of their implementation 34,42,49,50,52,56 9. Society Indications 4.9 Procedures of the highest governance body for overseeing the organization’s SO5 Public policy positions and participation in public policy development and lobbying 77 identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or 10. Product Responsibility Indicators compliance with internationally agreed standards, codes of conduct, and principles 18,19,23 PR5 Practices related to customer satisfaction, including results of surveys measuring 【Commitments to External Initiatives】 customer satisfaction 38,39,40 4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization 20,21 4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: has positions in governance bodies; participates in projects or committees; provides substantive funding beyond routine membership dues; or views membership as strategic 57,77

CSR Report 2007 83 All Nippon Airways Co., Ltd.

Shiodome City Center, 1-5-2 Higashi-Shimbashi, Minato-ku, Tokyo 105-7133 Japan

Contact for CSR issues Risk Management & Compliance, CSR Promotion E-mail: [email protected]

Contact for environmental issues Environmental & Social Affairs, CSR Promotion E-mail: [email protected]

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