CSR Report 2005

ANA Group Corporate outline (as of April 1, 2005) CONTENTS

Company name Message from the President 1 All Nippon Airways Co., Ltd. ANA CSR Message 2 President Mineo Yamamoto 2004 Highlights 6

Date of establishment December 27, 1952 ANA’s CSR Address As a company trusted by society Shiodome City Center,1-5-2 Higashi-Shimbashi, Minato-ku, Tokyo 105-7133, Japan ANA’s CSR 12

Website URL ANA’s Management Style 14 http:// www.ana.co.jp

Paid-in capital ¥107,292 million Approach to Safety

Number of employees Aiming for the world’s highest levels of safety

12,091 Approach to Safety 18 Number of routes and flights Domestic service : 132 routes, 865 flights per day International service : 35 routes, 488 flights per week Engagement with Stakeholders As a good corporate citizen

Customers 24 Outline Communities and Society 28

Editorial Policy Next Generation 32 We published the CSR Report as a new tool for communication. This Report presents plain and simple Business Partners 35 descriptions of our CSR activities to a wide range of stakeholders. Employees 36

* For more details about our environmental activities, please refer to the ANA Group Together with Our Stakeholders 40 Environmental White Paper. Activities and data not included in the Report will be available on a CSR information page on our website – ANA Sky Web.

Organizations Covered Approach to the Environment In principle, the ANA Group as a whole. For contribution to a sustainable society (Some activities are distinct to All Nippon Airways Co., Ltd. or its group companies.) Philosophy and Management 44

Measures to Prevent Global Warming 47 Period Covered April 1, 2004 to March 31, 2005 Measures to Prevent Noise 50 (Includes some activities before or after this period.) Resource Recycling 51

Referenced Guidelines Environmental Preservation Activities 52 “Sustainability Reporting Guidelines 2002” Global Reporting Initiative Assessment by Third Parties 53

“Environmental Report Guidelines (Fiscal Year 2003 Version)” Ministry of the Environment (Japan Government) Corporate Data 54

Date of Publication Information about the Cover Art and Illustrations 55 December 2005

Cover Art and Illustrations The cover art and illustrations in the Report are from the winning entries in the Second Aozora (Blue Sky) International Environmental Picture Book Competition sponsored by ANA. We trust you will enjoy these works, which were drawn in the hope of conveying environmental problems to children, our future leaders.

Message from the President

We sincerely strive to make our activities fully transparent, just like the clear blue sky.

On publication of this CSR Report

ANA was the first purely privately owned airline to be established upon the resumption of civil aviation in Japan. We are indeed gratified to have continued to provide air transport services of benefit to the public good for more than 50 years, and are deeply indebted to our customers for their patronage.

Recently, there has been much focus on corporate social responsibility (CSR). The ANA Group regards the sustainable service of safe and pleasant flying as our foremost responsibility to society.

We have taken security and reliability as the very cornerstones of our corporate philosophy, and realize that sustainable safety in the skies is of critical importance in this aspect. This is why our philosophy on safety begins with the statement that safety is the foundation of our business and our promise to the public. This commitment to safety is shared by all of our employees as the most important value. We place our approach to safety above all other priorities.

Beginning this year (2005), we present our stakeholders with the CSR activities of our Group in the form of this Report. We sincerely strive to ensure that our corporate activities are fully transparent, just like the clear blue sky. Many points undoubtedly require improvement, and we appreciate your views on the Report so that we may reflect them in ANA’s future CSR activities.

In all these efforts, we sincerely appreciate your continued support.

Mineo Yamamoto President & CEO

Message from the President ANA CSR Message

Express your feeling about the global environment, nature, wildlife and resources into picture books!

The Aozora (Blue Sky) International Environmental Picture Book Competition began with this call of ours. Yoji Ohashi, Chairman of ANA, recently held a three-way interview with Ms. Mei Matsuoka, who won first prize in 2004, and Mr. C.W. Nicol, the author and naturalist who has chaired the judging panel since the first competition in 2003.

The Picture Book the story of a trip by three friends (a entries are admirable, but the important Competition ladybug, a turtle and a snail) in the great thing for picture books is to keep the outdoors. children’s interest and prevent them from Ohashi Ms. Matsuoka and Mr. Nicol, Ohashi What did you keep in mind when getting bored. In addition, I personally have thank you for you created it? always been enchanted with ladybugs, and accepting my Matsuoka I figured that the book would be her book is colorful, too. All in all, it is an invitation today. more engaging and could better deliver its excellent work. Ms. Matsuoka, I message by having these three characters Matsuoka Thank you so much. I saw understand that visit the places they like the best, which some of the other entries. A lot of you won first prize were the mountains, sea and forest, and wonderful books were submitted in the in the Second talk about the three senses of sight, sound contest by people from various countries Aozora (Blue Sky) and smell. As the story has to be told in and of all ages. I find it hard to believe that International Environmental Picture Book four pictures, I kept the words simple so mine was chosen from among so many fine Competition. What prompted you to enter that the book could be enjoyed by people works. the contest? of all ages. Ohashi The competition attracted almost Matsuoka A friend of my father’s heard Ohashi Mr. Nicol, you have been serving 400 entries by entrants ranging from five to about the competition and encouraged me as chairperson of the judging panel since 84 in a total of 13 countries. We published to enter in the belief that the theme of the first contest. I imagine it must be hard 100,000 copies of Ms. Matsuoka’s entry and picture books about environmental to reach decisions on awards. Why did the are distributing it on our planes, at our problems was perfect for me. I received an panel select Ms. Matsuoka’s entry for the airport counters and to schools and libraries honorable mention in the first competition, first prize? around the world. and decided to enter the second as well. Nicol It was so cute and interesting. As its Matsuoka That is a tremendous number of Ohashi Tell us about your picture book. theme is environmental problems, the copies. I am really delighted to have my Matsuoka It is entitled “Ten-san, Kame- contest attracts a lot of entries that call for picture book read by so many people san and Muri-san Go on a Journey.” It tells picking up litter or cleaning up the air. Such around the world.

ANA CSR Message

The UK and Japan creatures, from dragonflies and wild roses to human beings. The second is the health Ohashi Ms. Matsuoka, I understand that of all living creatures. And the third is you are currently living in the United beauty of nature and its appreciation. Only Kingdom. when all three of these elements are Matsuoka That’s right. Our family moved present can there be peace of mind where near to London when I was 11. the old may die in peace. Ohashi What is being done on the Matsuoka Mr. Nicol, you have been to environmental front in the United Kingdom? many countries. How do you think Japan is Matsuoka In the United Kingdom, too, many doing from a global perspective? people are concerned about the abnormal Nicol I first came to Japan in 1962. climate. The mass media and government Although there are about twice as many have a very positive-minded attitude people as the United Kingdom and a towards action on environmental problems. booming industry, nearly 70 percent of the Nicol I was born in South Wales, 65 years land was forested and inhabited by bears in ago. At the time, only 5 percent of the land some parts. I can see drift ice in the north, was forested. Nature had been destroyed and coral reefs in the south. The country because of the priority on industrialization. was rich in the aspects of nature, philosophy, People began to realize that something was religion and culture. I really respected the wrong. Today, forests cover about 60 Japan of those days. Unfortunately, the percent of the land, and salmon have construction boom began around the time of returned to the rivers. From age 13 to 17, I the 1964 Tokyo lived in the Cotswolds. There, too, the Olympics. This was accompanied by situation is much better now than it was then. wholesale destruction of nature and also an There are farms growing vegetables increase in illegal dumping of industrial organically and even beekeeping waste. I felt betrayed. businesses. Green markets have also been Ohashi Notwithstanding, the Arakawa revived. The town now attracts many tourists River and Tokyo Bay have become cleaner who are lured by the scenic countryside. in recent years. Matsuoka Nowadays, many people I know Nicol Right, things have gradually try to avoid driving as far as possible. become better, but there is still a lot to do. Purchasing organic products have also I have often said that Japan is like a boat become a common sight. People are with a long rudder. It starts out slowly, but presorting trash eventually makes a big turn. and also have a Ohashi I have heard that Tokyo Bay looks high awareness of beautiful from outer space. recycling. The Nicol We can do it if we try. important thing is for each person to do what he or she can. Japan is like a ship with a big rudder. Nicol Dr. Mikail, who was Vice President of Malta at the time of its independence, It is slow at the start, said an ideal society had to have three elements. One is peace among all living but eventually makes a big turn.

ANA CSR Message

ANA CSR Message

It would be nice if companies would support our desire to preserve nature.

Revival of forests and coral reefs program, we wish to extend the planting nature, but it is hard for most people to to other airports. find a way to put this idea into practice. I Nicol Mr. Ohashi, what motivated ANA to Nicol For most people, the very thought would like to see companies lead the way. begin the contest? of going to an Nicol In Japan, people working for major Ohashi Every time an aircraft flies, it airport induces companies have usually not had much inevitably emits carbon dioxide. We stress due to all contact with nature. People aged up to 30 wanted the contest to be an occasion for the procedural rarely have any experience of chopping everybody to think about nature, the bother and the logs or feeding chickens. They are not environment and our earth. flight itself. going to come up with good ideas for Our corporate philosophy emphasizes our Aircraft noise is nature conservation. People need contact commitment to “Continue to be a familiar also a nuisance with nature. presence” and “Offer dreams and to people in the surrounding area. Ohashi Once we actually get involved in experiences to people around the world”. Planting trees around the airport strikes planting trees or corals, we come to In order to fulfill this philosophy, we me as a good idea. appreciate the difficulty and value, and began planting trees in the vicinity of the Ohashi We also planted corals off the take an interest in such projects. Lately, five airports of New-Chitose, Hakodate, coast of Onna Village in Okinawa under we have been calling for volunteers in Haneda, Matsuyama and Miyazaki in our program for revival of beautiful coral tree-planting tours to other countries. We fiscal 2004. We did so under the slogan reefs. had many applications in spite of the “Thinking of People and the Earth” and as Matsuoka I think that ANA’s outlook on substantial expense. something we could do to preserve the the environment is really wonderful. It is Nicol I would be happy to support ANA environment. We are going to plant more important for companies to actively as an advisor on managed woodlands. trees and nurture forests together with the practice environmental preservation in the local community. Through this 10 year 21st century. We all want to preserve

ANA CSR Message

P r o f i l e C.W. Nicol Mr. Nicol was born in Wales in 1940. He has researched wildlife and was active in environmental issues in Canada and Ethiopia. In 1980, he decided to take up residence in the Kurohime district of Nagano, where he purchased abandoned farmlands and worked to restore the ecosystem. In 2002, he established the C.W. Nicol Afan Woodland Trust. He serves on various committees, including the Tokyo Metropolitan Ecotourism Support Committee. From 2003, he has chaired the judging panel for the Aozora ( Blue Sky ) International Environmental Picture Book Competition.

Mei Matsuoka Born in Tokyo in 1981, Ms. Matsuoka is an illustrator who now lives in London. Since graduating from Kingston University in 2003, she has continued to produce illustrations, mainly for children’s books. She authored and illustrated the picture book “Burger Boy” published in September 2005, and another book of hers telling the story of a raccoon and a tree is scheduled for publication in 2006. She was awarded the first prize at the Second Aozora (Blue Sky) International Environmental Picture Book Competition for her picture book entitled “Ten-san, Kame-san and Muri-san Go on a Journey.”

Yoji Ohashi Yoji Ohashi was born in 1940 and is the Chairman of ANA. At the ARK GARDEN on the roof of the Suntory Hall / Courtesy of Mori Building Co., Ltd.

ANA’s CSR Matsuoka In Japan, companies have a particular influence on society, and I think

Ohashi The key words “security” and their involvement is a quick way to “reliability” are the basis of our corporate convey that message to the public. philosophy. We must be a Group that can Ohashi Concluding our talk, I would like be patronized with peace of mind while to ask if you have any comments for ANA? enjoying the trust of our customers. I regard Nicol Just keep going the way you are. them as the fundamentals of our activities Please keep up the good work. and existence. To be considered secure Matsuoka In addition, ANA is making and reliable by the public, we must always efforts to reduce waste. With their superb be conscientious. To fulfill CSR as well, we services, there is nothing more to ask for. need not do anything special; all that is Ohashi As part of our Group vision, we required is conscientious performance of aspire to become one of the leading each and every one of our current airline groups in Asia. By “leading”, I approaches, with a higher transparency. As mean number one in respect of quality, I see it, CSR lies in conscientious customer satisfaction and value creation. approaches to these tasks. As our Group is These goals are clear enough but will be centered on air transportation, we recognize hard to attain. I believe that each will be the public service dimension inherent in achieved as a result of CSR activities. reliable flight operations. CSR at ANA And I am convinced that we will surely consists of the sustainability of safety and reach them as long as we also retain our comfort in the air as our core business. We distinctive character expressed by the have been making efforts in the words “Anshin, Attaka, Akaruku-genki! environmental and social aspects, and (Reliable, Warm, Enthusiastic!).” I hope

you will keep a close watch on our future intend to continue doing so. Matsuoka While companies are activities. Once again, thank you. presumably engaged in various activities, I think ANA’s picture book contest is a unique and excellent idea. It is also CSR at ANA lies enormously beneficial to instill children with an affinity for nature through in conscientious promotion participation in tree-planting programs. Nicol I am delighted that a major of our approach as opposed to corporation is concerned about the environment and has begun to take something special. action on it.

ANA CSR Message

2004 ighlights

Opening of the Terminal 2 at Haneda Airport (Tokyo) and Central Pursuing convenience and comfort as top priority for our customers

Terminal 2 at Haneda Airport (opened in December 2004) Inside the “Light Cone” (Terminal 2 at Haneda Airport)

Rakunori Counter Haneda Airport and Central Japan International Airport

We launched the ANA Rakunori Service for

customers requiring a little extra help, such as the elderly, passengers with children,

children flying alone and passengers with pets. At the Rakunori Counter, baby strollers and wheelchairs are provided. The Electric cart service counter is only 75 centimeters high, which Haneda Airport is universally designed to facilitate use by passengers in wheelchairs. Terminal 2 at Haneda Airport (Tokyo

International Airport) is an L-shaped building that has 15 gates with access to passenger boarding bridges (PBBs) compared to the 11 that were available for ANA in Terminal 1. This has increased the 75cm rate of PBB use from approximately 60 percent to 75 percent and significantly increased convenience. At the same time, measures for easier access in the large terminal became For a relaxing time in the air necessary. Therefore, moving walkways were installed and it was made possible for Staffs of the Rakunori Counter are ever wheelchairs to be checked at the boarding mindful that the people we meet may be uneasy about air travel. gate for easier access in the terminal. Through attentive conversation, we strive to Furthermore, we offer rides on electric carts understand the services needed by each passenger. for customers that are not in wheelchairs but have difficulty walking. Chiemi Yoshizawa Passenger Services, Tokyo Airport Office

2004 Highlights

Japan International Airport (Nagoya)

Universally designed airport facilities Haneda Airport and Central Japan International Airport

Terminal 2 at Haneda Airport was certified under the Heart Building Law, which requires consideration for all, regardless

of age, physical condition, nationality, etc. The terminal has many escalators and elevators, and its moving walkways are wide enough (160 centimeters) for a wheelchair user and a walker next to each other. The stepless pathways are wide enough for wheelchairs to turn around, and the slope angles are gentle enough for the physically challenged. The multipurpose restrooms in the airport are equipped with 2F Departure Lobby (Terminal 2 at Haneda Airport) ANA check-in counter at Central Japan International Airport (opened in February 2005) toilets for use by ostomates (people with artificial anuses or bladders), large tables Flight information system with consideration for the color-blinded for changing clothes or diapers and Haneda Airport and Central Japan International Airport emergency notification alarms that can be operated even if people fall on to the floor. To display flight information in four Central Japan International Airport languages (Japanese, English, Korean, advanced the barrier-free concept and Chinese), the system is designed with adopted a universal design facilitating use special features. A different color is used by all, regardless of age or disability. for each language, so people can instantly To ease the burden of walking, the recognize the change of language by the distance from the check-in counter to the change of color. In addition, the selected boarding gates were designed to be no colors are distinguishable by the color- more than 300 meters. Moving walkways blinded. are wide enough (180 centimeters) to allow wheelchairs to turn around. The airport is also installed with large elevators Star Alliance Lounge and slopes with shallow angles. Central Japan International Airport These airport facility designs incorporated ideas from ANA and other The Star Alliance Lounge has no steps airlines. inside and is accessible by an elevator from the international departure floor. The tables are universally designed for use by passengers in wheelchairs. Such design provides an environment where all passengers can relax.

Wide moving walkway

Restroom designed for multipurpose use

2004 Highlights

2004 ighlights

2004 was a year of earthquakes. Step by step, we did what we could as a good corporate citizen

Lifts on the snow removal vehicle for kids in between the hot water service

Hot water service support confirm that people were inconvenienced the importance of mutual aid, In response to the Mid Niigata Prefecture Earthquake by the lack of hot water. We started the communication and compassion. After 31 service on November 15th, at the days, the service was ended on December When the Mid Niigata Prefecture evacuation site on the playgrounds of an 15th, once all evacuees had moved into Earthquake struck on October 23rd, 2004, elementary school in the Kawaguchi, temporary housing. During this period, we we operated extra/non-scheduled flights Kita-Uonuma, where a magnitude of 6.8 supplied a total of 152,700 liters of hot and voluntarily transported relief supplies had been recorded and recovery of water water and 2,473 people bathed with our from the following day. A subcommittee in and gas supplies were slow. hot water service. response to the earthquake was organized, The snow removal vehicle, based at Participation in the relief activities for and shipment of supplies, financial aid, Haneda Airport, equipped with a 6,000 - the Mid Niigata Prefecture Earthquake and collection of donations from liter water tank and a powerful boiler was I was stunned at the damage, which was much employees were arranged on behalf of the used for the service. The boiler can heat worse than I had imagined. It left me speechless. 250 liters of water to 90 degrees Celsius in ANA Group. In addition, we considered The worry and feelings of the people in the how we could effectively offer support a minute. We served the hot water, affected area were painfully obvious. through the employees and facilities that adjusting the warmth for use in temporary From my participation in the relief effort, I ANA is proud of, and came up with the bathtubs, tanks for dishwashing, laundry realized the importance of taking the initiative, idea of a “hot water service” using the and hot water bottles. as an active principal myself. I believe we were snow removal vehicles for airplanes. 64 Group employees took part in the able to deliver something that embodied the ANA Group Philosophy. I feel such activities We sent relief teams to supply the relief effort. The interaction with volunteers are the foundation and strength of our Group. service after surveying the shelters to and the people evacuated at the shelters left the employees with strong feelings of

Working together to serve hot water Yutaka Takanashi Line Handling, International Airport Utility Co., Ltd.

2004 Highlights

Helicopter maintenance at Phuket

Support for helicopter Establishment of donation miles maintenance In response to the Mid Niigata Prefecture In response to the Sumatra Earthquake and Sumatra Earthquakes

In response to the Sumatra Earthquake, an Following the Mid Niigata Prefecture international emergency relief team from Earthquake, we received requests and Japan was dispatched to the island of inquiries from many customers about the

Phuket in Thailand, one of the affected areas. idea of exchanging accumulated miles Three mechanics from the helicopter for donations. department of ANA Aircraft Maintenance In response, we established a scheme Donation of the drinking water supply vehicle Co., Ltd. were on this team to support with for earthquake donation miles as one of the maintenance of helicopters used in the the items in ANA Selection, our ANA relief effort. In the enormous devastation Mileage Club program of gifts for 10,000 Donation of a drinking left by the tsunami, their duty was accumulated miles. Although the scheme water supply vehicle extended two weeks longer than originally was executed for a limited period th th In response to the Sumatra Earthquake planned and they devoted themselves to (November 4 – 30 ) and only accepted maintenance support. applications via the Internet, it attracted a On December 26th, 2004, Northern Sumatra For these efforts, we received a letter of tremendous response from Japan and in the Republic of Indonesia suffered appreciation from the Minister of Foreign abroad. As a result, a total of 12 million extensive damage from an earthquake Affairs of Japan, the Director General of the yen was donated to the Niigata Disaster centered just off its coast. The emergency Fire and Disaster Management Agency (of Relief Headquarters. relief headquarters of the region requested Japan) and the Japan International In December 2004, we instated the support from us in the form of a vehicle Cooperation Agency (JICA). same kind of scheme in response to capable of transporting drinking water. In requests from customers after the response, we decided to donate a tanker Lending a hand to international Sumatra Earthquake, and collected a (with a capacity of 8,500 liters) that had contributions total of 7.27 million yen which was been used to carry aircraft anti-freeze fluid Although it was winter, Thailand was sweltering; donated to the Japan Red Cross. at Haneda Airport, and converted it into a the temperature was around 35 degrees Celsius, vehicle for transporting drinking water. day after day. The conditions were tough for both Within a month, ANA Motor Service Co., people and helicopters. Nevertheless, it eased my fatigue and was glad I had come when I heard Ltd. and Haneda Create Co., Ltd. had how grateful the people in the affected areas were accomplished the conversion by for the effort. I feel fortunate to have had the collaborating on the task, which included opportunity to be on the international emergency maintenance checks; painting; design, relief team and make a contribution even though I production and installation of the water tap; am an employee of a private firm. For the people cleaning inside the tank; and inspection of of Thailand, who were so kind to us during this the water quality. period, I wish for their early recovery. On January 26th at Haneda Airport, ANA Motor Service donated the vehicle to the Presentation of the donation list to the Niigata Prefecture Disaster Relief Headquarters for the Mid Niigata Prefecture Republic of Indonesia. Earthquake

Hisashi Fukuda Osaka Maintenance Section, Helicopter Company, ANA Aircraft Maintenance Co., Ltd.

2004 Highlights

2004 ighlights

People-Friendly, Eco-Friendly, Community-Friendly A revolutionary aircraft – the Boeing 787 “Dreamliner”

Pursuit of lighter weight with lower emission and noise levels

In April 2004, we decided to add the The B787 is an aircraft designed with Boeing 787 series to our fleet in 2008 as passengers in mind. Compared to our next-generation medium-sized aircraft. currently operating aircrafts, the B787 will We are now participating in the provide a lower cabin pressure to be as development of the B787 model as the comfortable in flight as on the ground. launch customer. Furthermore, it will be capable of The B787 will be a revolutionary aircraft controlling the humidity as well as the offering improvements in fuel efficiency temperature in the cabin. Noise within the through superior aerodynamics and the cabin will be less thanks to the quieter use of lighter composite materials. engines and the enhanced aerodynamic Therefore, it is anticipated to make more features of the body. effective use of our natural resources. The By comparison with other aircrafts of the B787 will be powered by the Rolls-Royce same size, the B787 will reduce both fuel Trent 1000 series engines, offering high consumption and emissions by 20 percent, levels of safety and reliability and low and weigh some 30,000 to 40,000 pounds noise and emission levels with high fuel less. efficiency. In this respect, we are the leaders in reducing emissions of pollutants, CO2 and noise.

Specifications of the B787-3 (short range) and B787-8 (long range)

B787-3 B787-8 B767-300 Length 55.5m 55.0m

Height 16.5m 15.9m

Wingspan 51.6m 58.8m 47.6m

※1 Cabin width 5.2m 4.5m

Number of seats Approx. 300 (1 class) Approx. 230 (2 class) 288 (1 class)

Cargo capacity Approx. 16 tons Approx. 10 tons

Cruising speed M0.85 M0.80

※2 Range Approx. 2,200km (Shanghai) Approx. 11,000km (US West Coast) Approx. 7,400km (Honolulu)

Maximum cruising altitude Approx. 13,000m

※1 Cabin width at shoulder height (1.3 meters) from the cabin floor. ※2 With full load (passengers & cargo)

Illustration by Ryosuke Fujiki

2004 Highlights

ANA’s CSR As a company trusted by society

Corporate governance in the ANA Group The key words for corporate governance in the ANA Group are “transparency” and “strategy.” Assurance of transparency is essential for a trusted enterprise. This Report itself is a means of accountability to our stakeholders by disclosing information on our CSR activities. Our executive organization and internal control system also reflect a keen awareness of the need for transparency and objectivity. Our aspiration to become one of the leading airline groups in Asia similarly requires efforts to increase our competitiveness and corporate value. This, in turn, demands effective and prompt determination of business policies. As such, we are also striving for the improved and enhanced corporate governance needed for strategic decision-making.

Hiromichi Toya Senior Executive Vice-President

ANA’s CSR ANA’s CSR

Corporate Philosophy of the ANA Group

Corporate Philosophy of the ANA Group

Our corporate philosophy sets forth our ANA Group’s Corporate Philosophy desired orientation for the whole Group

Our Commitments also a statement of what we must constantly be committed to in all of our On a foundation of security and reliability, the ANA Group will: activities, which is the foundation of our business. It consists of our Corporate Create attractive surroundings for customers Philosophy and Course of Action to meet Continue to be familiar presence the Philosophy. Offer dreams and experiences to people around the world Recent years have seen major changes in the business climate,

United States and the consolidation of Course of Action

Japan Airlines and Japan Air System. Our ○1 Maintain top priority on safety philosophy expresses our ideals for the Group and the fundamental purpose that ○2 Customer oriented it must fulfill to survive the fierce ○3 Contribute to society competition under these circumstances ○4 Embrace new challenges and remain the airline of choice for ○5 Debate with active interest, decide with confidence, and execute with customers and society. The Corporate conviction Philosophy was established in January ○6 Build a powerful ANA Group by effectively using human resources and 2002 following discussion across all focusing on teamwork as a competitive strength layers, from executives to rank-and-file employees, in ANA and its subsidiaries.

ANA Group Code of Conduct

In May 2003, we established the “ANA Preamble of the ANA Group Code of Conduct Group Code of Conduct” to be adhered to by all Group employees. This Code was We at All Nippon Airways Co., Ltd. & our priorities to become the natural choice of our drawn up from the CSR perspective and subsidiaries (“ANA Group”) acknowledge our customers. ANA Group dedicates its utmost social responsibility and mission in air effort to conducting its daily business in a fair aims to ensure the implementation of our transportation and every other sector of our and legal manner. Furthermore, as good philosophy. It covers aspects from safety business. We make great efforts to build our corporate citizens, we positively engage in management and quality control to topics customer trust and loyalty. community activities. such as relations with stakeholders, The ANA Group promises to act ethically and Always proud of “Our environmental concerns, social morally. Should a conflict arise between Way”, we act with contribution, relationship with the society, profitability and legality, we will strictly comply honesty and the rules in the workplace and employee with the law. utmost integrity. behavior. The preamble presents our Delivering and maintaining the highest quality in position on corporate ethics. services, products and safety are our foremost We advocate compliance awareness to all Group employees along with the distribution of the booklet on the Code.

ANA’s CSR

CSR Policy and Approach

Basic Perspective on CSR Historical Background to Our Approach

In April 2004, we established the CSR Weaving a beautiful world with a on the need to build relationships of trust Promotion Conference and initiated warp of trust and weft of love grounded in love of humanity. In his words, discussion on how we should promote Kaheita Okazaki, he wanted to “weave a beautiful world with CSR activities in our Group. In conclusion, the second a warp of trust and a weft of love.” The we decided on such matters as our president of phrase affords a clear glimpse of his approach to CSR and the promotional ANA, assumed magnanimous soul, which far transcended organization. In April 2005, we this position concern solely about the company. When established the CSR Promotion after Masuichi one joins the company, new employees Committee and an executive office with a Midoro, the first learn about the founding spirit, which lives secretariat. president who on in ANA’s DNA even today. The newly established CSR Promotion had created a Committee is headed by the President purely civilian and is composed of executives from all airline company divisions in connection with CSR. Kaheita Okazaki, out of his desire the second President of ANA There is nothing particularly new about to advance our CSR activities. Our CSR policy is to aviation in Japan. (The Occupation Force take an overview of initiatives undertaken had imposed a total ban on civil aviation separately at the divisional and in Japan after the Second World War.) departmental levels from the CSR During his presidency, the company standpoint, publicize them to society and experienced two aircraft accidents, and thereby discharge our duty associated was consequently jeered for his earnest with accountability to society. efforts to improve relations between Japan and China. One reporter Organizational Chart questioning him about responsibility for the accidents asked which he would -Offer dreams and experiences to Chairman choose, relations with China or ANA. people around the world “ANA can be managed by others, but I -Contribute to society President have no substitute when it comes to Our Corporate Philosophy states our relations with China, an issue that bears pledge to offer dreams and experiences Vice-President on the country’s future,” he shot back. to people around the world. To fulfill this, As this indicates, Okazaki was even we formulated the Course of Action, the more concerned about Japan’s future and third of which calls for contribution to Management Committee its relations with China than running the society. These statements were based on company. He often lectured his employees our founding spirit. Operations Committee

CS Promotion Committee

CSR Promotion Conference (abolished)

CSR Promotion Committee (new) Safety

Promotion Committee Environment

Committee

IT Strategy & Governance Promotion Committee

Risk Management Committee

Compliance Committee

Illustration by Yuko Tsujita

ANA’s CSR

ANA’s CSR ANA’s Management Style Group Corporate Structures to Fulfill Social Responsibility Vision

Group Corporate Vision Corporate Governance

ANA Group’s We clearly recognize the importance of (including directors). Our governance Corporate Vision strategy and transparency in our structure aims to set the right balance corporate governance. In today’s harsh between an appropriate and prompt business climate, a competitive decision-making system, effective and With passenger and cargo management structure is indispensable. efficient management and professional transportation in Japan, elsewhere in Asia and around Therefore, decisive action by executives auditing and supervision. world as its core business, the versed in management is essential. We do ANA Group aims to be one of the not apply a system of committee-based ○1 Board of directors leading corporate groups in Asia. governance resting on the complete We are reducing the number of directors separation of executive and audit functions, in the interest of prompt decision-making which was newly introduced at board meetings. Ever since our Being the leader in Asia means that we will become: with the 2002 Commercial Code revision in founding, we have appointed outside Japan. Also, on our board of directors, directors to respect external views from Number one in quality where the crucial business decisions are an objective standpoint. In addition, Number one in customer satisfaction made, the majority of executives have highly experienced executive officers Number one in value creation particular expertise in our operations. attend board meetings to reach In addition, we are delegating authority appropriate decisions on important to departments and divisions, and have issues. We are working towards strict The corporate vision for our Group is based appointed executive officers with supervision and prompt decision-making on the new corporate philosophy formulated experience and expertise at these levels. to these ends. By limiting the term on the in 2002, and sets out our immediate goals. We also instituted a Group strategy board to one year, our management Specifically, our primary aspiration is to be conference led by the president and system reflects our shareholders’ will. one of the leading airline-based corporate corporate executive officers. Being distinct groups in Asia. This is not merely a matter from the board of directors, it is the mission ○2 Corporate executive officer system of size; we hope to rank first in Asia for of this conference to decisively engage in Personnel appointed to the post of quality, customer satisfaction and value issues fundamental to operation of the corporate executive officer are creation. Group, as necessary for prompt adaptation thoroughly acquainted with the business, To achieve this vision, we have set our to changes in the business climate as well and given the authority and responsibility management axis with an emphasis on as agile and effective execution of to execute their tasks. We started this profit (i.e. value creation), and the strategic operations. This conference facilitates system in 2001 with a view to building a axis to this end, on a consistent and speedy decision-making. scheme enabling such personnel to continuous strategy for customer At the same time, we are making concentrate on stable operation of the satisfaction and thoroughly distinguishing special efforts in respect of transparency company. Corporate executive officers ourselves from our competitors. In addition, and objectivity, which are regarded as the are selected from each field to enhance under our provisions for executing such advantages of committee-based management efficiency. strategy, we put emphasis on “promptness companies, in the belief that we shall and customer-first stance” and on “utilizing extend beyond the legal requirements for ○3 Auditing system each employee’s individuality and spirit of such companies. By appointment of To strengthen our auditing capability, we challenge”. outside directors, we attach importance to appoint five auditors, including three from the supervisory capabilities of the board. outside the company, to the board of Similarly, we are appointing full-time auditors. Also, one full-time auditor is from external auditors in order to augment our outside the company. As is apparent from auditing capabilities. Additional such measures, this system is designed measures are being taken to strengthen for close external monitoring. the system of internal control. We are also enhancing our auditing capability through linkage with the Management System internal control system. Besides the Prompt decisions and effective audits undertaken by the auditors and audits/supervision those supported by the Corporate ANA appoints 15 directors, five auditors Auditors Office, the board examines and 35 corporate executive officers reports from internal control units on a

Illustration by Yukiko Abe

ANA’s Management Style

Internal Control System

Board of Directors

President & CEO

Internal Control System

Risk Management System Internal Audit Risk Management Committee Compliance Committee

Risk Management Subcommittee Chief Risk Management Officer Chief Compliance Officer ( Executive Vice-President,) Air Transportation Safety/Crisis ( Executive Vice-President,) General Administration Management Subcommittee Legal Affairs

General Administration Legal Affairs Information Security Subcommittee (Secretariat) (Secretariat)

(Group Company) Compliance Officers

(Department) (Department) Risk Management Leaders Compliance Leaders

regular basis. This further enables it to Committee and Internal Audit Department Line in the secretariat of the Compliance keep a close eye on the corporate in April 2003 to complete our system of Committee for internal reporting within the executive capabilities. internal control. Group. The office receives calls concerning all areas, from activities for ○4 Business Advisory Board ○1 Internal auditing compliance promotion to problems that In addition to those bodies stipulated by The Internal Audit Department, which cannot be resolved in the workplace. The law, we have instituted an advisory board reports directly to the president, Help Line is an exclusive toll-free line comprised of seven experts in various implements operational and account which also accepts contact by e-mail fields and representatives of top auditing for ANA and its subsidiaries. and fax. In addition, it accepts management. The board’s opinions on the Periodic audits are conducted in anonymous inquiries and is open to all overall business of the Group are fully accordance with annual business plans, Group employees. reflected in our management. and non-periodic audits on request from management or as a result of various risk Internal Control System analyses. The aim of our internal control system is to Regular auditing covers each increase stability and efficiency in organizational unit in the whole Group. business, implement appropriate Plans are drawn up to audit all the major information disclosure and assure units every year, and other units at least observance of laws, regulations and once every three years. The results are internal rules. We consider risk reported to the president on a monthly management, compliance and internal basis and to the board of auditors on a auditing as the means of attaining these quarterly basis. goals. From this perspective, we established the Risk Management ○2 Help Line - internal reporting desk Committee in July 2002 and Compliance In May 2003, we established the Help

ANA’s Management Style

ANA’s CSR ANA’s Management Style

Structures to Fulfill Social Responsibility

Compliance Risk Management

Reporting directly to the president, the Transparency and accountability In Under the direct supervision of the Compliance Committee (secretariat : Legal terms of compliance, our focus is on president, the Risk Management Affairs) promotes the compliance activities transparency and accountability. The Committee (Secretariat : General of the ANA Group. The Chief Compliance fundamentals of compliance are to prevent Administration) is tasked with providing Officer is responsible for compliance problems from occurring by raising awareness. concrete risk and crisis management. throughout the Group and the Compliance One of the most important factors We are striving to ascertain and control Officers are responsible for each Group is our response in the event of occurrence. We risks that could impede our business in company. Executives themselves are must properly address any problems and order to maintain stability and smoothly instructed to exercise leadership for disclose such information to the public, rather achieve our goals. compliance. than seeking to conceal them. Accepting stern Besides employee education and criticism from all layers of society will sharpen Business Continuity Plan (BCP) in awareness-raising, to encourage our consciousness to prevent any recurrence. the event of an earthquake compliance and to identify and solve Several incidents afflicted the ANA Group As a Group operating in earthquake- problems, we have workplaces audited by in fiscal 2004. Each was taken up by the prone Japan, the preparation of a BCP in the divisional Compliance Leaders. Compliance Committee for review. In the event of an earthquake is an issue of particular, we focus on whether responsible significant importance. Aircraft operators, Establishment of activity plans action was taken in regards to transparency including ANA, are important source of Each year, we establish specific activity and accountability. Thus far, information has transportation for the provision of aid to plans. With “Deeper penetration of been disclosed both proactively and affected areas. We view it as part of our compliance” as our theme for fiscal 2004, promptly. duty to society to maintain operations we designated four priority tasks (including The Compliance Committee makes even upon the occurrence of serious safety/quality, protection of personal periodic reports on its activities to the board disasters. From this perspective, we have information) and took steps to heighten of corporate auditors. prepared a BCP to hedge against the awareness of compliance in each unit. We particular risks associated with a large- are also doing more in the aspect of scale earthquake in the Kanto region, education. Besides launching and making where our management resources are extensive use of a compliance website on concentrated, or in the Tokai region. Under this plan, we are enhancing the our intranet for this purpose, we also provide e-learning programs about various seismic resistance of our laws. The agenda for fiscal 2005 includes telecommunications facilities, stocking Compliance website on the the introduction of a Code of Conduct for intranet emergency supplies, as well as each country in which we have an office, establishing a safety confirmation system along with the opening of the Help Line and and facilities for service continuity. notification of related information to all employees.

Seminar on compliance Mami Natsuno Legal Affairs

High level of ethics expected of the ANA Group

In the ANA Group, compliance is not merely a matter of obeying the law; it encompasses activities to meet the expectations of all stakeholders (such as customers, shareholders, transaction partners, investors and the community) and disclosure of information to the same. The Group is based on air transportation, which is a means of public transportation. I feel we must be highly ethical on the basis of safety. Only a few years have passed since the scheme was introduced, and we would therefore like to prepare many more opportunities to further share the concept behind compliance and concrete actions with the highly skilled employees of our subsidiaries, each with their own specialized work. Illustration by Rosemary Grimble

ANA’s Management Style

Approach to Safety Aiming for the world’s highest levels of safety

Safety in the ANA Group The perception of safety at the foundation of our business is firmly rooted by all employees of the ANA Group as the key concept. But this is not a goal for us, as one can never do enough in terms of ensuring safety. We are doing our utmost to maintain safety at all times. We must ensure safety and the comfort that it affords. We are acutely aware of the strong concern about safety among our customers. Therefore, we will provide timely and transparent information on safety. Through such efforts, I believe we will remain trustworthy in the eyes of our customers. We can hope for nothing more than to continue being viewed as safe and reliable by our customers through the assurance of safety. We will continue to march resolutely ahead with our dedication to safety.

Suguru Omae Senior Executive Vice President

Approach to Safety Approach to Safety

Approach to Safety

ANA Group Safety Principles Kiyotaka Honda Safety Promotion, Safety Promotion & Audit To achieve the reputation for security and safety culture, the philosophy plainly sets reliability among customers noted in our forth the roles and responsibilities of the Commitment, we formulated the ANA Group three both universal and basic entities for Safety Principles in recognition of the need maintaining and improving safety: for a shared perception and unified policies companies, organizations and individuals. and outlooks among all employees in regard to safety, the most important element ANA Group Safety Principles at the very core of air transportation. The philosophy begins with the Safety is our promise to the public and is statement that safety is our promise to the the foundation of our business. public and is the foundation of our Safety is assured by an integrated business. It goes on to clearly assert the management system and mutual respect. Group’s obligations with regard to air Safety is enhanced through individual transport. performance and dedication. Squarely in the tradition of the Group’s

Safety Promotion Committee

The Safety Promotion Committee of each and offering proposals and advice. airline in the ANA Group are overseen or Also, there is an ANA Group Safety chaired by the corporate president, and Promotion Committee that brings together constitute the supreme organs of deliberation the top safety officers (i.e. presidents) and decision-making on safety. The from each airline. Members discuss safety committees work to maintain and improve problems of common concern and share Safety assurance, safety by examining major safety issues, safety information with each other. The a perpetual theme determining policy, confirming that safety purpose is to help resolve safety measures are being implemented throughout problems and maintain/improve the level the company, engaging in related monitoring, of safety throughout the Group.

ANA’s Commitment Operations Report (OR) Meeting

At ANA, safety takes absolute precedence. All employees think and act in full Attended by the president, vice- actual on-the-spot conditions enable the awareness of our duty to support safe presidents and the directors of concerned flexible and quick action needed to divisions, meetings are held to review maintain the highest levels of flight safety flight operations. operational reports on taking prompt and comfort, and have the company We collect and analyze information measures and improvements. The top leaders recognize the status of the flight related to safety and assess it from all management members themselves go to operations right before their eyes. We angles. We are also prepared to react the airport to hear firsthand reports on the regard safe operations as the most promptly to any shortcomings. Pursuit of operational status and study the issues. important requirement, and therefore higher levels of safety is a perpetual theme The meetings are held every week at consider it crucial for management to and constantly requires a fresh approach. Haneda Airport in Tokyo. exercise leadership directly on the site. Lately, the issue of security has also come Immediately upon discussion in the OR to the fore. While there are always agenda meetings, the heads of all concerned to tackle, we are determined to solidly divisions (including those of subsidiaries) ensure safety as the underpinning of come together for concrete studies continued peace of mind and trust among extending to details. our customers. These strict arrangements for learning

Approach to Safety

Illustration by Miyuki Tanaka

SAFER (Safety Evaluation IOSA (IATA Operational Safety Audit) and Review Program)

In April 2001, we launched SAFER as an In November 2004, we became the 14th internal scheme for checking our safety airline in the world, and first in Japan, to be management system. Its objective is to registered under the International Air evaluate the mechanisms that support Transport Association (IATA) Operational safe operations. We check to see that Safety Audit (IOSA). IOSA is a safety audit tasks are performed in accordance with program with standards incorporating the designated procedures, the results international laws and safety requirements. properly managed and that the requisite In the future, there is the distinct arrangements have been made for each prospect of our expanding alliances and process. code-sharing services with other airlines. The auditing standards are based on Under these circumstances, systems for aviation laws and ordinances and airlines’ mutual safety management are safety-related requirements around the assuming increased importance. The world. Auditors trained for ISO 9000 resolution of problems by means of certification, the international standard common international standards and for quality, check compliance with these IOSA certification report issued for registered mechanisms will be indispensable for standards. Their findings are linked to airlines company passengers around the world to enjoy a active improvement of issues for certain relaxing flight. Since joining the Star Alliance in 1999, units as well as those common to a number of them. Audit reports are we have undergone its own safety audits. submitted directly to the president, who In addition, over the last few years, we then leads a management review aimed have made efforts to achieve complete at eliminating any latent difficulties in compliance with the IOSA standards organizations. established in 2003 and other international standards. Even with IOSA registration, we are determined to push

ahead with our ongoing endeavors for even higher levels of safety. IOSA audit

For the safety of our worldwide customers

With the increasing number of airline partnerships, we are now responsible for providing safe flights for ever-increasing numbers of passengers from around the world. The quality of safety is something that is not visibly quantifiable. For us, taking up the challenge of meeting the IOSA standards and obtaining such registration was a crucial milestone that compelled us to find ways to deliver a quality of this kind beyond global norms and a comfort for our customers. The undertaking rested on a unified effort by all units of the company as well as leadership and partnership across all fields. In the end, it proved we are maintaining levels of safety above the global norm. We are proud of this achievement, but shall not allow it to lull us into complacency. I would like to see each and every one of us continue to emphasize our safety at Kayo Morikawa all times. Group Safety Auditing

Illustration by Miyuki Tanaka

Approach to Safety

Approach to Safety Approach to Safety

Approach to Safety Approach to Punctuality

ECHO ANA FOQA Program Punctuality Based on Safety

Developed in 1971, Experience Can Help The ANA Flight Operational Quality We are working to heighten our Others (ECHO) is a program for Assurance (FOQA) Program enables the operational punctuality with complete voluntarily reporting experiences which review of all flights at all times, based on assurance of safety, the foundation of our could have led to an incident. It allows the analysis and assessment of flight business and our duty to society, as the cockpit crew members to share such record data. key precondition. experiences. Through the Program, cockpit crew Punctuality is a key element of air ECHO collects reports on cases of and associated divisions are given transportation. Operating strictly on misjudgment or inadequate controls due feedback on points identified as schedule, with departures and arrivals at to errors or misinterpretations and of requiring improvement in respect of the scheduled time, is an essential part of experiences thought to be useful for operational quality, in order to respond our service quality. excluding hazardous elements, to be promptly. The Program helps to maintain In our endeavors to increase shared by the cockpit crews. Its aim is to and promote flight safety while improving punctuality, we have launched a Group- prevent incidents or accidents that may operational quality. wide project for all employees involved in otherwise occur in future. operations at airports. We have these To encourage the provision of employees submit proposals for information from all, ECHO assures the Safety Manual improvement and utilize them as the anonymity of its sources. The reports basis for executing measures under a submitted are reviewed by the cockpit system of strict safety management. As a crew of all aircraft types in the ECHO We have prepared a safety manual with result, we have been able to maintain a committee, which meets every month. regulations for all important safety items. high level of punctuality as compared to Information from the reports is presented The list includes policy on safety as an other airlines. Specifically, in fiscal 2004, in the ECHO journal, distributed to all airline, safety targets, the safety we attained an on-schedule departure cockpit crew six or seven times a year. responsibility and authority of the heads rate (the share of the total number of ECHO is currently being extended to all of organizational units, safety reporting flights departing no more than 15 airlines in the Group as the “ANA Group systems, safety audits, accident minutes after the scheduled time) of ECHO”. investigation, operation of safety 95.17percent for domestic service and promotion committees and safety 90.34percent for international service. education. We have had our operational flight data In some countries, administrative including the punctuality rate disclosed authorities require airlines to have a safety on the ANA Sky Web on a monthly basis management system (SMS) for systematic since April 1999. management of perspectives, mechanisms, We are mounting a company-wide and schemes for flight safety. The IATA, effort for continuous improvement, too, fully supports the introduction of SMS. understanding that punctual operation is The auditing the responsibility of all airlines as a public standard of its IOSA, the safety auditing transportation. program recognized around the world, contains many articles relating to SMS. URL http://www.ana.co.jp/eng/aboutana/ Our safety manual extensively reflects flt_data/e/index_sm.html the substances of SMS. Operational Data Air Turn Back Rate Diversion Rate On Time Departure Rate

Illustration by Chiori Fuyuki

Approach to Safety

Reports on Safety-related Incidents

The ANA Group was given a stern and greatly deplore the occurrence of of safety systems throughout the Group. warning by the Ministry of Land, such incidents, especially when In so doing, we are putting particular Infrastructure and Transport for problems are being pointed out in emphasis on heightening awareness of operational incidents in 2004 and 2005. regard to transport safety. We offer our safety and reconfirming procedures and Our Group Safety Principles state that deepest apologies for having caused so manuals. We constantly ask ourselves safety is our promise to the public and is much apprehension to our customers what more can be done to eliminate the foundation of our business. We are and all other parties as a result. We take errors and keep our operations safe, constantly reminding all Group a very serious view of these matters and and remain committed to doing our employees of the importance of safety, are undertaking a comprehensive review utmost to ensure safety.

○1 Entry of passengers into the ○2 Consumption of alcohol by flight ○3 Neglecting air traffic control cockpit in flight crew less than 12 hours before instructions at Komatsu Description the scheduled time of departure Airport On July 13th, 2004, the captain of ANA Description Description Flight 1969 (a charter flight from On May 4th, 2005, three cockpit crew On April 22nd, 2005, ANA Flight 361 Osaka/Kansai to Dublin) admitted over 20 and five of the six cabin attendants operated by Air Nippon began the take-off passengers into the cockpit while the consumed alcoholic beverages with roll at Komatsu Airport without clearance plane was cruising. their dinner during their stay in the city from the control tower. The aircraft Cause of Akita, and thereby violated the in- stopped on instruction from the air traffic Because it was a chartered flight, with house rule prohibiting consumption of controller to abort the take-off. clearly identified passengers, the captain such beverages less than 12 hours Cause misinterpreted the in-house rules and before flight service. Substitutes were On the taxiway right before entry into the admitted the passengers into the cockpit. arranged for the cockpit crew, whose runway, the captain instructed the co-pilot Measures violation was detected in time, but the to take over the controls for take-off. For Issuance of a written circular from the cabin attendants worked as scheduled this reason, the captain and the co-pilot president to all employees, instructing a on the flight the following day. were preoccupied with changing roles of further enhancement of awareness on Cause the pilot in control. As a result, neither security The flight crew neglected the basic confirmed the tower’s approval to take-off. Issuance of a written circular from the practice of ascertaining the specific time Measures director of the Flight Operations to all limit before drinking and failed to engage Issuance of a written circular from the cockpit crew instructing higher awareness in mutual confirmation of self- directors of the Flight Operations of all of crisis management and observance of management. airlines in the Group to all cockpit crew, regulations Measures strictly instructing proper communication Issuance of a written circular from the Issuance of a written circular from the with air traffic control directors of Inflight Services and directors of Flight Operations and Holding an emergency safety meeting Marketing & Sales, instructing a Inflight Services to all flight crew with all cockpit crew for discussion heightening of awareness of security and instructing strict observance of rules focused on air traffic control to heighten tightening security measures Presentation of this case at various safety awareness Implementation of a self-assessment conferences and meetings to heighten Implementation of mutual assessment by flight for all cockpit crew in management awareness of rule observance cockpit crew regarding communication positions with air traffic control in actual flights Implementation of a safety meeting for Stipulation in the flight manual to the all cockpit crew in non-management effect that the pilot in control must be positions designated before the flight Confirmation of knowledge on safety and heightening awareness of security in periodic drills and inspections for all cockpit crew, and in periodic emergency drills for all cabin attendants

Approach to Safety

Approach to Safety Approach to Safety

○4 Movement of cargo ○5 Flight at an altitude different from cockpit crew to draw their attention to containers in flight air traffic control instructions such issues, and publication of a Description Description newsletter presenting the case to share On ANA Flight 22 on May 15th, 2005, ANA Flight 664 on June 5th, 2005 operated the information containers in the cargo space moved with inaccurate altitude data until landing Review of operating procedures for forward when the plane began to due to a malfunction with an altimeter- handling such cases, and studies for descend. This movement caused noise related system. As a result, the flight improving the training of knowledge and vibrations. cruised at an altitude different from that and procedures on the system Cause instructed by the air traffic control. Inspections of the piping for the The cargo loading staff did not report to Cause atmospheric pressure measurement their supervisor about the lock-down The atmospheric pressure data on the system on all aircraft being completed. In addition, the co-pilot side was rendered inaccurate Implementation of improvements to supervisor mistakenly assumed that the due to a loosening of a connection tube prevent misunderstanding about containers had been secured. As a for the atmospheric pressure indications of switchovers on the result, locking procedure and the measurement system. Nevertheless, the atmospheric pressure data computers of confirmation were neglected. captain mistakenly believed that the the captain and co-pilot Measures altimeter system on the captain’s side Additional rule for provision of advice Sharing information on this case had malfunctioned, due to a lack of in- to cockpit crew by radio (stipulation of through presentation to the concerned depth knowledge of that system and confirmation with reference to the units at all airports, and instructions for some improper trouble-shooting. requisite material and confirmation of repeated confirmation and enhancing Furthermore, the mechanics on the advice by two or more mechanics) for confirmation procedures ground did not give proper advice when proper advice Implementation of a reeducation informed of the situation. As a result, the program for the Group employees captain’s misunderstanding went involved in the incident, with a safety unresolved throughout the flight. education video on human error Measures Introduction of a new procedure for Issuance of a written circular from the locking containers director of Flight Operations to all

ANA’s Response

Listed below are the measures taken by ANA in response to the Commitment by the Director of Flight Operations series of safety-related incidents. ○1 Emergency safety inspections ○2 Executive visits to the front line ○3 Direct safety talks Direct dialogue between executives and employees ○4 Emergency safety meetings A total of 1,000 meetings with about 11,000 participants ○5 Safety executive caravan 11 sites with 820 participants ○6 Special inspection for safe operation

Mitsuo Morimoto Executive Vice-President

To keep the skies safe, we absolutely cannot tolerate even the slightest error or laxity. The expression “to err is human” does not apply to air transport safety. Toward the goal of eliminating human error, we are going to promote a consciousness renewal among flight crew and conduct a rigorous review of procedures and manuals.

Safety executive caravan held at Central Japan International Airport (Nagoya)

Approach to Safety

Engagement with Stakeholders As a good corporate citizen

CS (Customer Satisfaction) in the ANA Group ANA’s character is summed up in the slogan “Anshin, Attaka, Akaruku-genki! (Reliable, Warm, Enthusiastic !)” We are doing our utmost to elevate the status of the ANA brand towards our goal of ranking first for services, with features that really impress customers. In a sense, a company’s brand is shaped by the customers’ ratings of its activities. In the ANA Group, we are also making a determined effort to build up the brand ourselves. While this may be impracticable in certain respects, it is but another example of our “Anshin, Attaka, Akaruku- genki!” spirit. We also believe in the importance of listening to our customers’ views. We regard the voice of our customers as the key to improving services and creating corporate value. We are always considering ways to better reflect it in our services. Thus far, we have received numerous precious insights from our customers. While there have also been complaints, the frank opinions will help make ANA even better tomorrow. We look forward to comments on all aspects of our service from our customers. Naturally, we are always delighted to hear a few words of approval.

Masao Nakano Senior Executive Vice-President

Engagement with Stakeholders Customers

CS Activities

ANA Group Brand Vision Respecting customer Creating Personal and Human Experience with Customers views for provision of The ANA Group brand vision is to create a high-quality services personal and human experience with our customers. A satisfied customer and a simple “thank you” afford us all the joy and Akiko Kutsukake gratification we need. In our view, with Planning & Administration, CS Promotion each employee that adopts this outlook, our CS levels – the key element for

solidifying the position of our brand – rise ever higher. Therefore, our CS activities are focused on employee consciousness-raising and the quality management of our products CS website on our intranet and services based on customer feedback.

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

Now that the air transport industry in ANA Brand Concept

Japan is entering an age of genuine competition, we cannot expect to be the ANA Brand Vision airline of choice unless we firmly establish Creating personal and human a distinctive ANA character, i.e. strengths experience with customers and attributes that cannot be imitated by other companies. Our Customers With this in mind, we launched the Himawari (Sunflower) Project, which is devoted to a review of our character and establishment of shared values through Communication

work by 28 mid-career employees

selected as members. This team went into action in June 2004 and participated in ANA ANA’s Commitment activities including lectures by experts, a variety of surveys and in-depth

discussions during overnight camps before submitting their report in The ANA Character In keeping with our customer-first policy, “Anshin, Attaka, Akaruku-genki! we emphasize a constant respect for December 2004. They summarized the (Reliable, Warm, Enthusiastic!)” ANA character defined through their work certain absorption of customer views to in the words “Anshin, Attaka, Akaruku- raise our levels of quality and set genki! (Reliable, Warm, Enthusiastic!)” ourselves apart from competitors in all They also defined the ANA “Mind and aspects of service. High quality, Spirit” to support this character and be unmatched by our rivals, will empower Mind and Spirit shared by all employees, i.e. a CS CS mentality, frontier spirit, team spirit our brand and enhance our competitive mentality, frontier spirit and team spirit. strength. We depicted this concept as a As our vision for the brand, the Group sunflower (the ANA Group) that is has posted the goal of “creating personal constantly oriented toward the sun (the and human experience with customers”. customer). The whole Group is We derive much encouragement from a conducting a concerted campaign to simple “thank you” since a satisfied convey our “Anshin, Attaka, Akaruku- customer is what we work for. genki!” character to all customers.

Customers

Management of Personal Information

Good Job Card Management of Personal Information

On the front lines, for those in direct It is our duty to strictly manage our that all employees were informed of and contact with our customers, we instated a customer’s personal information. With the followed them. scheme of “good job” cards. Employees Act on the Protection of Personal To make sure that all employees hand these cards to each other for a job Information in April 2005, we reinforced our understood the substance of the new act well done. The scheme increases pride in controls and modified our services so that and related regulations, we built an work through recognition by colleagues our customers will remain free of worries. environment for e-learning and self-study and also helps to breed a culture of More specifically, we began by using CDs. To the same end, we interest about the work of others. By formulating the methodology of customer prepared and distributed a handbook on showing the messages on these cards to information management, and announced the subject, mainly to employees in others and relaying words of praise from it to all under the title “ANA Privacy Policy”. service divisions that have direct contact our customers, we are sharing the Next, we supplemented our existing rules with our customers. customer’s joy with our own among all on information security control with new employees. articles on the protection of customer URL http://www.ana.co.jp/eng/aboutana/ information and information legal/index_sm.html management by employees, and ensured ANA Privacy Policy

Personal information is precious property entrusted by our customers

We are constantly mindful in our work that the personal information entrusted to us by our customers is precious. In the ANA Mileage Club, we handle information relating to many customers for mileage calculations and granting of privileges. The Club is Good Job Card essential for the improvement of services for our customers, but it also involves a heavy responsibility since we receive personal information from more than Quality Control 10 million members. We shall resolutely continue to of Cabin Service exercise the greatest care in handling it.

The system for assessment of quality control on flights consists of two components: that by the cabin attendants and that by other employees Hajime Kosaka Loyalty Marketing, In terms of the first component, about Marketing & Sales 250 cabin attendants have been appointed as quality improvement inspectors and promoters. They regularly report on in-flight quality after checking it with reference to ANA indicators and assessment standards. For the second component, assessments and analyses are made by our Quality Assessment Division. The Division checks the actual cabin service quality according to rating standards while taking full account of the passenger’s perspective.

Illustration by Yukiko Abe

Engagement with Stakeholders

Customers Customers

Customers

Consideration for All Our Customers

Sky Assist Barrier-free Airports and Aircrafts

In 1997, we For barrier-free arrangements, we take on Even after this law came into effect, we established the ANA board the views of customers and opinions took additional measures such as Sky Assist Desk for of others both within and outside the equipping aircraft with movable armrests consultations about company, and act on them to provide and installing restrooms for use by flying to ensure that improvements and new services. We began passengers in wheelchairs. We have also all challenged by making special writing pads available introduced “assist seats” to help physically customers could for customers with hearing disabilities at challenged customers take their seats and enjoy a relaxing and pleasant flight. The eight airports in Japan in 1998, a service prepared subtitles for ANA Sky Vision Desk is equipped to readily provide factual which is now available at all airports in (ANA’s in-flight video program). As this knowledge, accurate information, and Japan and on all domestic aircrafts (except indicates, we listen closely to our customers proper arrangements for trips in response for certain small aircraft). From 1999, prior and actively implement improvements. We to requests of all customers, from to the enforcement of the Transportation also publicize barrier-free features, such as reservation to disembarkation. Barrier-Free Law, we provided wheelchairs a special page on ANA Sky Web (our for all domestic aircraft. website) for the physically challenged. URL http://www.ana.co.jp/dms_svc/service/ assist_eng/index.html ANA Sky Assist

Writing pad (available at Airport wheelchairs (accessible in the aircraft by Aircraft restroom accessible by ANA airport counters and removing the main wheels and lowering the wheelchairs (available on most on aircraft in Japan) armrests) aircraft)

Barrier-free Hotels

ANA Hotel Tokyo has new barrier-free rooms as blinking lights, flashes and vibrations. with greatly improved furnishings. In advance Additional touches may be exemplified by of the renovation, we sought advice directly electric-powered beds that can be horizontally from users of wheelchairs and incorporated raised to facilitate nursing care, washrooms Misa Kimura their valuable insights into numerous details. large enough to allow wheelchairs to easily turn Sky Assist Desk For guests with hearing disabilities, we around and toilet paper holders from which the installed “door knock transmitters” that react paper can easily be torn from the roll with one even to soft knocks and chimes, a TV hand. In these and other ways, the rooms are “doorphone” with a wireless monitor enabling specially designed from the guest’s perspective. Offering a relaxing and pleasant flight for all passengers guests to see people at the door, and an “alert master” that informs occupants of knocks, URL I currently handle phone inquiries at the Sky chimes, telephone calls, fax receptions and http://www.anahoteltokyo.jp/e/index.html Assist Desk and help customers who are clock alarms by a combination of signals, such ANA Hotel Tokyo physically challenged or in poor health with their trips. I can often sense the apprehension or stress of the customer on the other end, and try to allay such feelings as my primary task. Next, by listening to our customers, I attempt to get a firm understanding of the customer’s situation, concerns and all requisite information. Finally, I try to furnish the caller with all the assistance they need based on expert knowledge. Barrier-free rooms and washrooms

Customers

Engagement with Stakeholders

Illustration by Sachiko Makiyama

Customers

Sign Language Activities ANA Rakunori (Easy Travel) Services

Sign language activities were begun by The aim of the service is to deliver cabin attendants under their own initiative. comfortable flights to all customers. There At present, it is being extended from a are various categories to serve all types of project to upgrade capabilities, with sign passengers needing assistance. “Senior language leaders preparing educational Rakunori” provides all manner of materials and teaching seminars. assistance for the elderly, so they can In the summer of 2004, cabin attendants enjoy a worry-free flight. “Family Rakunori” versed in sign language began to wear offers support for customers traveling with badges for easy recognition by customers babies or small children and for expectant needing their services and to increase mothers. “Kids Rakunori” helps children Sign language mini-lessons customer satisfaction. This practice is traveling alone all the way from departure now spreading throughout the Group gratitude as well as requests to fasten to arrival. And “Pet Rakunori” enables through coordination with other sections. seat belts, stow carry-on luggage and passengers to enjoy trips with their pets. In 2004, we also took additional steps refrain from using mobile phones. ANA staff wearing to upgrade sign language skills as a Passengers have told us of how this badge are always means of communication and higher reassured they felt about flying when ANA ready at airport customer satisfaction. More specifically, cabin attendants communicated in sign Rakunori Counters to all cabin attendants were instructed in the language. Some of them also encourage ensure our signs for simple greetings our attendants to persevere in learning the passengers have an and expressions of language. enjoyable flight.

URL http://www.ana.co.jp/eng/int_svc/ The sign language badge (worn by cabin attendants officially rakunori/index.html certified with sign language ANA Rakunori (Easy Travel) Services skills of Grade 4 or higher)

Introduction of AED Sawako Ohara Sign Language Leader, Tokyo Inflight Services Division Automated external defibrillators (AEDs) are Reassuring customers at ease highly effective if a passenger suffers an with a simple “hello” attack of ventricular fibrillation. We began

Almost 200 ANA cabin attendants have been certified as installing AEDs on all aircrafts from March having sign language skills of Grade 4 or higher, and wear the 2003, and plan to complete this installation sign language badge in the cabin. As leaders, we hold sign for subsidiaries as well (excluding Air language mini-classes three times a month. Passengers have Hokkaido) by the end of the first half of fiscal told us how pleased they are with ANA because we know 2005. (As of July 2005, AEDs are installed sign language. Even cabin attendants who cannot fully on all aircraft except the DHC8-300/400 and communicate in sign language can really bridge the gap F50.) Meanwhile, we have instructed cabin with passengers who have hearing disabilities by flashing a simple “hello” sign. I hope to extend this attendants in the operation of AEDs to movement so more passengers can fly ANA with ease. ensure they are able to take the proper action in emergencies.

AED (Automated external defibrillator)

Customers

Volunteer Activities

Aiming to be a familiar Lily of the Valley Event presence to our customers In this yearly event, cabin attendants and passenger services staff present lilies of the valley grown in Hokkaido to patients in hospitals nationwide. The program was begun in 1956, and 2004 was therefore the 49th year of the event.

The program started following a proposal to present these charming white flowers, which represent the return of happiness, to patients and staff in hospitals by His Imperial Delivering bookmarks to a hospital in Okinawa Highness Prince Takamatsu. Up until 2002, we presented freshly cut flowers. We switched to flowers pressed into Pressed “Lily of the Valley” bookmarks bookmarks in 2003, in response to requests to be able to keep the flowers for a long time and thereby make the wishes for happiness associated with them more permanent. After the flowers had been pressed with the cooperation of Japan Remiko Pressed Flower, volunteers in the ANA Group

carefully make each bookmark by hand. In 1956, the presentations were made at only 10 hospitals. The number steadily grew along with the expansion of the ANA present these gifts, and a total of about Group network to nearly 50 across the 2,700 employees helped to make the country. In 2004, approximately 18,000 bookmarks over a period of ten days. patients received the bookmarks, which We intend to continue the program as delight both them and their families. a modest form of social contribution, as 60 cabin attendants visited hospitals to long as it brings joy to the patients.

Miho Watanabe ANA Research Institute Communities and Society

ANA’s Commitment

In the ANA Group, it is our duty as a good corporate citizen to make a positive contribution to society. We promote contributions to the community with participation by our employees toward the goal of a sustainable tomorrow. We aim to keep the Group close to our customers through communication with society. Through my part in production of the monthly Group newsletter, I, too, hope to promote these activities widely throughout our Group.

Customers Engagement with Stakeholders

Communities and Society Lily of ated on the grateful faces of the patients receiving the the bookmarks made me feel happy as well. valley - “return to happine ss”

As a token Sachiko Nishimura of our Inflight Service Administration, wishes for Inflight Services their happiness and to give patients some encourage ment, we present bookmark s bearing pressed lilies of the valley that have been carefully and individual ly hand- made by Group employee s for patients in 50 hospitals across the country. We made about 18,000 lily bookmar ks, each one extendin g our wish for the message of happine ss conveye d by the flowers. We handed the bookmar ks to each patient, together with a smile. To see the smiles reciproc

Illustration by Fujiko Tamizu

Illustration by Miyuki Tanaka

Captain Asada and the Bed School

The story began with an e-mail from the to Tokyo. They were worried that such a groups. Nishitaga Hospital School (School for long ride on the train could adversely Up in the air, the excited children the physically challenged) that ran as affect its health. continuously shouted for joy. follows. One of them had a bright idea: “Let’s “Look, our school!” “I am writing to ask you whether you ask the airplane company!” Sendai “The city of Sendai looks so small!” have a record of flights on April 29th, Airport lay across the road from the “I can see Matsushima!” 1963. We are now compiling an outline sanitarium. The children who had always gazed at history of our school in commemoration Although the request was rather the sky framed by the hospital window of the 50th anniversary of our founding unreasonable, Mr. Kamada, the station were now soaring freely in it. three years from now. In the process, we manager of Sendai Airport, graciously discovered a clipping of a newspaper accepted, and Captain Asada agreed to article about how ANA gave 50 of our undertake the job of flying the pigeon students a free flight on what was then back home. the latest passenger plane, circling the The pigeon was brought safely back city of Sendai twice. We would to its owner, and the episode was given appreciate it if you could look into your a lot of attention in the newspapers. It records for this flight.” was the start of the friendship between An investigation revealed that the wife the bed school children and Captain of the captain of the flight in question Asada.Captain Asada visited the bed Captain Asada and the children on the flight was still alive and well. Here is the story school many times. The children she told us – a story bringing together a seemed to be always gazing out the Thereafter, Captain Asada went to pilot who loved the sky and a group of window at the sky. He was painfully Seattle for training on the B727 aircraft. children who drew their dreams on it. aware of their yearning to someday run He fell ill upon his return, and passed around outside, under a sky unframed away in September 1967.

by windows. There are no records of any “Wouldn’t it be possible to take the exchange between ANA and the bed children on an excursion flight?” Captain school afterwards. But the memory of Asada wondered. He wanted to hear their the dream and experience lives on in the shouts of joy in the open skies. An children and the staff of the “bed excursion flight from Sendai Airport may school” (currently Nishitaga Hospital not have much impact on their condition, School). The e-mail noted at the The Douglas DC3, the mainstay of the fleet at the time of ANA’s founding he thought. beginning of this article inquired about Captain Asada suggested his idea to the details of the flight, to be included in On April 9th, 1958, a carrier pigeon ANA, but there were numerous problems the story of Captain Asada in a flew into the National Tamaura Sanitarium to overcome, and the issue of revenue publication celebrating the school’s 50th near Sendai Airport. Living in the was the least of them. “Won’t the anniversary. Sanitarium were about 200 people with children get sick during the flight? And caries disease, including children of how will you get children in wheelchairs The memory of the “dreams” and school age. The adult patients began to onto the plane?” he was asked. But “experiences” shared with our customers teach the children on their own initiative, nevertheless, he repeated the proposal never fades. in classes that came to be known as the to ANA every year. He was moved by Dreams and experiences are eternal “bed school”. the looks on the faces of the children in – stretching from the past into the future. That morning, the bed school children the bed school. He wanted to make their found an unfamiliar stray pigeon among longing for the sky come true. ANA Group’s Corporate Philosophy the flock they were raising. The ring In 1963, five years after the pigeon around its foot revealed that the bird flight, ANA finally approved the Our Commitment belonged to a man in Tokyo. excursion flight. Offer dreams and experience to The children asked each other how Two flights were made on April 29th , people around the world they could return the pigeon back safely as the 50 children were divided into two

Communities and Society

Engagement with Stakeholders Communities and Society

Volunteer Activities With the Community

Red Feather Community Chest Aircraft Maintenance Center Tours

Since 1962, ANA has supported the Red at our check-in counters at 48 airports and ANA Aircraft Maintenance Center offer Feather Community Chest fund-raising drive 6 ANA Square (city ticketing office) free tours for the public. These tours are as part of our social contribution activities in locations in Japan. As we did in 2003, we available for all, including students on accordance with the Course of Action to painted the red feather symbol of the drive school trips, families and the challenged. “Contribute to society” in our Corporate on six Boeing 767 and four Boeing 737 Each year, there are nearly 40,000 Philosophy. aircraft. By the end of the drive on participants. Thus far more than 300,000 Our cooperation began with services at December 31st, these aircraft had made people have participated in the tours. 24 airports in response to a proposal by the approximately 6,000 flights, publicizing the URL then-Minister of Health and Welfare, who drive throughout Japan. http://www.ana.co.jp/cp/kengaku took note of our extensive routes. On Aircraft Maintenance Center Tour Information Page October 1st of each year, cabin attendants (*Currently available in Japanese only) and passenger service staff of the ANA Group deliver messages and red feathers from the Minister of Health, Labour and Visits to Child Welfare Welfare to governors, mayors and the Institutions heads of municipal subcommittees at ceremonies to kick-off the drive all over Each July, we participate in the Fuji Gakuen Japan. The year 2004 marked the 43rd year Summer Festival held at Fuji Gakuen (a child of our participation. welfare institution) near Narita Airport, In 2004, we also set up donation boxes Collecting donations in Niigata Prefecture together with Tokyo Electric Power Co., the Lion’s Club and other organizations. During the Festival, we deepen ties with children by “Change for Good” Program ANA Hotels Volunteers Day participating in the bazaar and joining in

with dances. In the “CA (Cabin Attendant)

Santa” program, ANA cabin attendants visit We solicit donations on board flights from child welfare institutions in Santa Claus the United States (excluding Honolulu) costumes together with the Student Samba under the UNICEF “Change for Good” Team of the Latin American Association of program. Every month, we receive Waseda University each December. They donations from nearly 1,200 passengers. perform dances, play the violin and entertain with picture-card shows, as well as presenting Christmas gifts. ANA Marche In March of 2004, we invited children from

Boso Futaba Gakuen in Chiba to our Narita Maintenance Center to view airplanes, which Blood Donations ANA Marche is a bazaar that we began was a spectacular experience for them. for residents in the vicinity of airports ANA Hotels Volunteers Day is a social about ten years ago. Over the years, it contribution program sponsored by the Facilities Visited by CA Santas in Fiscal 2004 has grown into a large-scale volunteer ANA Hotels Labor Union Federation. It was Child Welfare Institutions activity with the participation of begun ten years ago by employees who Futaba Gakuen (Narita) subsidiaries in the Narita area (in 2004, wanted to do what they could to help the Narita Gakuen (Narita) there were 102 volunteers and about victims of the Great Hanshin Earthquake. It Boso Futaba Gakuen (Chiba) Yotsukaido Yogo Gakuen (Yotsukaido) 1,000 visitors with sales of approximately comprises a wide range of activities, from 1.5 million yen). Part of the proceeds was blood donations and registration for the Schools for the Visually Impaired Chiba Prefectural School for the Visually Impaired (Yotsukaido) donated to the Japan Rescue Association bone marrow bank, to collecting used (which raises rescue dogs), the Narita stamps and prepaid cards, charity bazaars CA Santa at a child welfare institution Municipal Welfare Council and victims of and collecting donations throughout the the Mid-Niigata Prefecture Earthquake. country. The donations are presented to the Japan Guide Dog Association, ASHINAGA and NGOs actively supporting children in developing countries.

Communities and Society

Illustration by Saya Aramaki

Across National and Regional Borders

Sports Tournaments and Other Events

Beijing and Dalian International Mini-soccer and Tag Rugby The 2004 ANA Open Marathons Tournaments in Kumamoto From May 15th to 16th in 2004, we held the ANA Cup Mini-Soccer Tournament in the prefectural sports park in the city of Kumamoto, Japan. During the two days, the Tournament attracted a total of 6,000 people (players and spectators) and 197 teams. Spectators watched some intense ANA cabin attendants with the winner, C. Plaphol matches that called to mind the 2002 World Cup games co-hosted by Japan and Korea. The 32nd ANA Open Golf Tournament was On October 11th (Sports Day, a held on the Wattsu course of the Sapporo Japanese national holiday), we held a tag Country Club over a period of four days rugby tournament open to boys and girls. starting on September 16th. We recruited Exciting matches were played by a total of volunteers to run the tournament, and Beijing International Marathon 350 children from 37 elementary school strengthened ties with the community. The We sponsor international marathons in teams and 17 junior high school teams in number of volunteers has been steadily China. In 2004, we sponsored the ANA the prefecture. Including the spectators, increasing with the cooperation of people Beijing International Marathon on October about 1,000 people enjoyed the tournament. mainly from the local community (Kita- 17th and the Dalian International Marathon Hiroshima City), and the number reached for the ANA Cup on October 31st. In the 626 in 2004 from 13 in 1997 (the first Beijing Marathon, 29,000 runners set out tournament). from the starting line in Tiananmen We donated a portion of the profits from Square. In the 18th Dalian marathon, the tournament to the city of Kita-Hiroshima, numerous athletes ran through the which produced many volunteers and nostalgic streets of the city. We will rendered valuable assistance. In addition, continue to do our best to build ties of we donated the profits from a Pro-Am charity goodwill between Japan and China tournament to the Hokkaido Transportation through these marathons. Tag rugby match held in October Safety Association and other parties.

Cargo Transportation Support ANA Musical Concert with

the Children’s Castle Band

ANA Cargo transports many paintings, We invited a band from the National sculptures, and other works of art Children’s Castle, a children’s center in displayed at exhibits around the world, to Aoyama, Tokyo, to stage concerts under and from Japan. We supported the our sponsorship in six European cities transportation of artworks for many (London, Paris, Brussels, Düsseldorf, exhibits throughout the globe, such as Frankfurt, Geneva). The concerts were those on dinosaurs, ancient artifacts and composed with the participation of the fine arts. audience, and were enjoyed by people of Besides safe and reliable shipment, all ages. ANA staff sang on stage with the the transportation of artworks requires children to infuse the event with ANA’s careful handling. We not only place top warmth. The concerts collected a total of priority on assurance of quality, we help 270,295 yen in donations, which were Artworks are carefully transported transport the joy to the exhibition visitors. donated to the United Nations High Commissioner for Refugees (UNHCR) for the relief effort in areas affected by the tsunami from the earthquake off Sumatra.

Communities and Society

Engagement with Stakeholders Next Generation

Aviation Classes Illustration by Hana Rude

ANA’s Commitment ANA Pilots’ Aviation Class

We wish to help with the development of We have been organizing aviation classes the aims of the Flight Operations Division. future generations. It is our duty to offer as in response to requests from all over the The focus is on enhancing customer much support as we can for the growth of world. From 2004, we have been recognition of safe flight operation and children and human resources needed for providing classes for elementary and ANA’s operations policy. In 2004, we held the future of this world. junior high school students around the a total of 33 classes. In addition, our Out of respect for the aspirations of globe. These classes are part of our cockpit crews voluntary lectured at 17 customer satisfaction activities based on classes in their alma maters. Kaheita Okazaki, ANA’s second president, who believed it was important to assist the development of talented ANA Pilots Aviation Class in Fiscal 2004 personnel and promote mutual Month Location / Event Masahiko Mano Administration, Administration & Personnel, interchange with other Asian countries, April Paris Flight Operations ANA established the Okazaki Kaheita Tokyo (Junior High School) International Scholarship Foundation May Frankfurt partly with donations from his family. The Tokyo (Junior High School) ( ) foundation has supported many scholars Gifu Prefecture Junior High School June Hong Kong Japanese School from China and other Asian countries. Fukuyama (High School) Also, pilots and mechanics organize July Family aviation class for AMC members aviation classes all over the world. This Sky Day Event gives us an opportunity to talk to children Kansai International Airport Tour on the basics of aviation. August Kansai International Airport Tour Haneda Airport Tour Yonago Airport Aviation class for junior high and high school students September Tottori Airport Niigata Airport Matsuyama Airport Okayama Airport Barcelona and Hamburg October Asahi Shimbun Aviation Class Giving dreams to children through Dublin, Geneva, Brussels aviation classes Miyazaki Airport November Central Japan International Airport At ANA, we often visit elementary and junior Aviation class at Junior College high schools to hold aviation classes, where December Tour for kids we talk to the children about how airplanes fly Niigata Prefecture (Elementary School) and what a pilot does in a day’s work. Some of Family aviation class for AMC members the children dream of becoming pilots. With so January Aircraft Maintenance Center Tours many questions, we often don’t have enough Dalian time to answer them all. I hope we can Full-day tour for kids continue to nurture these children’s dreams through such classes. February Full-day tour for kids I shall continue offering these classes, as I Niigata Prefecture (Junior High School) look forward to working in the cockpit in the Seiji Watanabe March Full-day tour for kids Engine Maintenance Section 1, future with children we meet at the classes. Power Plant Maintenance Center, Engineering & Maintenance

In ANA Sky Web, our website, a page for elementary and junior high schools to submit It is our duty to offer requests for aviation classes is available. support for future URL http://www.ana.co.jp/anafan/school generations around (*Currently available in Japanese only) the world. E-mail [email protected] Information on the aviation classes in our website

Next Generation

Illustration by Claire Ho Yan Yu

Power Plant Maintenance Center Aviation Classes

The mechanics of the Power Plant customers through these classes also Maintenance Center hold aviation classes enhanced their recognition of working in on a voluntary basis. This program, rooted the airline industry, and wish to take part in in the community, stimulates children’s future classes to enlighten more children. interest in aircraft and engines and We hope to continue such classes strengthens our ties of friendship. In the where we can see the delighted smiles of classes, mechanics go to their alma the children. maters to talk to the children about the principles of flight and methods of engine maintenance. The classes include making and flying paper airplanes together. Since 2004, we have recruited volunteers from the Center and have held classes for more than 700 participants, not only at elementary schools, but also for high school students and Sora no Hi (Sky Day) events . The participants rated the classes highly, commenting that they were “really great fun”, “made aviation more familiar” and were “fun for the whole family”. Also, we have received many handwritten letters of thanks and encouragement, which further motivates the volunteers. The volunteer mechanics from the Power Plant Maintenance Center mentioned that their encounters with

“Mini-mini CA (Cabin Attendant)” Aviation Classes

In March 2005, we held a “Mini-mini CA” Aviation Class in Osaka. The classes are planned in the hope of making ANA more familiar to children in the area as an “Anshin, Attaka, Akaruku-genki! (Reliable, Warm, Enthusiastic!)” airline. The class, which followed a proposal from the cabin attendants themselves, is appreciated every year. In its third year, it attracted Closing ceremony of Mini-mini CA Aviation Class applications from almost 1,000 elementary school students for the 24 the class, every student had become a seats offered in the class. Even children charming little cabin attendant. The class Class photo in CA uniform who were a little tense at the start, concluded with a graduation ceremony in gradually loosened up, as they changed which all of the children were presented into cabin attendant uniforms to take a with “Mini-mini CA” diplomas. The memorable photograph in the terminal ceremony finished in a friendly with their parents, experienced in-flight atmosphere, with parents and classmates service and a delightful lunch with ANA showing off their graduation albums to cabin attendants and pilots. By the end of each other.

Next Generation

Engagement with Stakeholders Next Generation

Lectures and Seminars on Aviation Other Activities

Airline Business Lectures in Universities The Okazaki Kaheita International Scholarship Foundation

Over the last few years, universities have airline and tourism business and the Out of respect for the wishes of Kaheita been endeavoring to initiate and promote environment surrounding the industry. A Okazaki, our second president, the appealing curricula not found in other better understanding of our industry in Foundation was established in March 1990 schools. This is because of certain trends, society is welcomed, and we wish to for the purpose of supporting human such as a decline in the number of continue cooperating in such classes. resource development in Asian countries. candidates along with falling birthrates and In 2006, Tokai University will initiate The foundation awards scholarships to the transformation of national universities Japan’s first college program for training university graduates in various countries, into independent administrative institutions pilots with the full cooperation of the ANA invites them to Japan and offers support in the spring of 2004. One of the new types Group. Besides lectures on technical for their studies at graduate school. of classes popular with students are those aspects, the curriculum will include classes, that lecture on developments in the real such as those on the overall state of the world of business, by people actually airline industry. Through this program, ANA involved. ANA sends personnel to several will expand the interaction between industry universities to lecture on topics such as the and academia.

ANA Lectures at Universities in Fiscal 2004

University Department Lecture Course

Senri Kinran Junior College Department of Human and Social Studies “Introduction to Asian Society and Culture” (full year course) Keio University East Asian Research Institute Course “East Asian Economic Partnership and Aviation” Hosei University Tourism-based Nation Course “The Airline Industry and Tourism” Donation of Aircraft Parts for Exhibition The airline business is of interest to students, too. We received a request from the Okinawa University students have particular interest in how the theories they study in school apply to the real business world. The airline business Kids Discovery Kingdom Foundation in Japan had long been protected and strictly regulated, but has concerning the dismantling of an ANA undergone significant deregulation in recent years. Students are eager aircraft that had been damaged during a to learn about issues such as what has been the outcome, and how a training flight on the island of proper balance between free competition and public service has been Shimojishima in Okinawa. The Foundation maintained. Fortunately, attendance has been running very high. wished to put parts of the aircraft on Tsutomu Ota display so that the children of Okinawa ANA Research Institute could actually expound on their dreams of

the sky and airplanes. The detached parts were not in good Seminars at Vocational Schools enough condition for display. Therefore, ANA Techno Aviation Co., Ltd. re-painted the parts. Delighted to learn that it would The safe operation of our aircraft depends on operations, the seminars explain the current be put to good use, the Group employees the support of the numerous staff involved. status in the air transport industry, the volunteered to set up displays for the flaps, The New Tokyo Airport Service Co., Ltd. functions and group companies supporting tires and seats. We donated the displays hold ground handling seminars for students safe operations, and daily operations in the together with a model plane on July 22nd, of vocational schools in the aviation and airport. Besides portraying the diversity of 2004 in the hope of stimulating children’s tourism fields in Tokyo, Osaka, Nagoya, staff involved and the difficulties of their interest in aircraft and their aspirations for Fukuoka and other cities in Japan. The work in support of aircraft operations, we the future. purpose is to assist the future advancement also try to enhance trust in and of the airline industry by passing on the understanding of air transportation by experience and know-how accumulated conveying the pleasures and importance of through ground handling services at the the job to interest the students. international airport to peripheral fields. With the main focus on ground handling, a relatively unfamiliar aspect of airport

Next Generation

Business Partners

Relations with Business Partners

Fair relations with ANA Group Compliance and CSR Business partners Purchasing/Transaction Guidelines among Business Partners

To promote fair transactions throughout the Many of the goods and services we provide We will continue to engage in green ANA Group, we fully comply with the to customers require the purchase of purchasing as stipulated by the Green Antitrust Law and all other related legislation materials and services from business Purchasing Network (GPN). based on the principles concerning partners across a wide range of fields, Besides our existing approach to “Relationships with Our Business Partners & including aircraft, jet fuel and cabin / office green purchasing and procurement, we Competitors” in our Code of Conduct. supplies. We wish to fulfill our CSR through will be asking our business partners for coordination with our business partners and their understanding of and cooperation ANA Group Code of Conduct (excerpts) in accordance with our purchasing/ with our CSR activities. At the same time, transaction guidelines. we will take account of their approaches II. Relationships with Our Business Partners regarding compliance, social & Competitors ANA Group Purchasing/Transaction Guidelines contributions and other CSR activities, in ○1 Relationships with Our Business Partners ANA Group purchase transactions are open order to promote such activities while worldwide, and are designed to be as fair as ○1 In terms of purchase transactions, we shall building stronger interactive ties. possible and easily understandable. fairly select and purchase the best goods and services, based on considerations of economic 2 Business Gifts and Entertainment ○ When merit. offering or accepting business courtesies from a business partner, we neither accept nor offer ○2 Our purchase transactions shall be open to any gifts or entertainment that are more than a suppliers in all countries, fair and transparent, nominal value, or that otherwise would be and conducted in accordance with procedures unreasonable or inappropriate in a business that are simple and easy to understand. We relationship. shall endeavor to build ties of mutual trust and complementation with our business partners. ○3 Compliance with Antitrust Laws and Truth-In- Advertising Laws ○3 For all purchase transactions, we shall In our relationships with our clients and observe the Group Code of Conduct, follow competitors, we promise to comply with all corporate ethics, fully comply with relevant laws antitrust laws in order to ensure fair and open and regulations and show consideration for transactions, and not to engage in false or resource conservation and environmental misleading advertising or any unlawful activities. preservation.

Resource Recycling and Green Purchasing Illustration by Ryosuke Fujiki

As one of our approaches to “resource purchasing increased by about 30 percent recycling” as stipulated in the ANA Group from fiscal 2003, but the green purchasing Ecology Plan 2003 – 2007, we promote rate declined. We regard the priority green purchasing and disclose purchase of environment-friendly stationery developmental information. and copier paper used on a daily basis as important for raising the consciousness of Green Purchasing for Office Supplies environmental conservation among ANA In July 2002, we installed an electronic Group employees. purchasing system on our intranet for office In the future, we will expand our supplies such as stationery and copier purchase of environment-friendly office paper to promote green purchasing. In fiscal supplies and promote green purchasing 2004, with the added participation of ten of throughout the Group in order to increase our subsidiaries, the amount spent on green the green purchasing rate.

Green Purchasing Rate for Office Supplies, etc. Green Purchasing Rate for Paper (copier paper, etc.)

Target Target Fiscal 2007 80% Fiscal 2007 100%

Actual Actual Fiscal 2003 62% Fiscal 2003 47%

Fiscal 2004 74% Fiscal 2004 30%

Business partners

Engagement with Stakeholders Employees

Basic Policies on Personnel We seek to develop personnel with the “spirit of challenge” Illustration by Mana Fujiu from our founding Group Human Resources (HR) Philosophy

We established the Group philosophy on Group HR Philosophy human resources in 2002, in order to fulfill the

commitment stated in our corporate “Take up the Challenge” philosophy to “Build a powerful ANA Group The challenge for personal by effectively using human resources and “GROWTH” and challenge for our focusing on teamwork as a competitive customer’s “EXCITEMENT” and strength”. It defines the type of human “EXPERIENCE”. resources and values to be prioritized by the Always challenge. Limitless challenge Shinya Group, and emphasizes “customer-orientated” creates a strong ANA GROUP. Katanozaka as the primary prerequisite for our growth. Personnel

Policies on Employment

Personnel sought by ANA the first airline (in Japan) to appoint a woman At ANA, we seek people who are “customer- to the board of directors, and are expanding oriented, well equipped with innovative the management positions occupied by capabilities, self-driven and team-oriented”. women. Meanwhile, we are taking steps to - People who are customer-oriented and make full provisions for maternity and pursue the Group Brand Vision of “creating childcare leave and for shorter working hours.

personal and human experience with With our action plan to assist employees customers”. raising the next generation, we will further ANA’s Commitment - People with the ability to strive for improve the workplace environment for women

ambitious targets with a global dimension to pursue their career.

and promote ongoing reform by combining “Take up the Challenge” – this is the ANA a strong will unafraid of failure with a flexible Share of Female Employees Recruited Group’s human resource philosophy. It is mind unrestrained by established in Sogoshoku (sales / administrations) often said that the basis of any company is frameworks. its employees. We believe that the core of - People with the versatility to contribute to 20.3% ANA’s power lies in its “people”, and are the team, with respect for colleagues that 29.9% doing our best to develop human resources achieve mutual growth while fully exercising Fiscal 2003 Fiscal 2004 in line with this philosophy to make ANA their individual strengths (such as an actual actual stronger. Therefore, our focus is oriented international outlook, enthusiasm and vitality). toward continued “challenge” to maintain We feel that people with these attributes this spirit dating back to our founding. best embody the “Anshin, Attaka, Akaruku- genki! (Reliable, Warm, Enthusiastic!)” We emphasize in-house communication. characteristics of ANA and can grow with Expanding employment of the Besides regular conferral with employees’ the company into the future. physically challenged unions toward the shared goal of ANA is eager to employ motivated but facilitating our work, this communicative Towards a comfortable work physically challenged individuals, and many stance is evidenced by the frequent “direct environment for female employees are now working in the Group. ANA Wing talks” between the president or other ANA aims to be a company where women Fellows Co., Ltd. was established in 1993 to members of the top management with can fully exercise their abilities. expand the workplace for the physically employees, enhanced by an e-mail address Approximately 5,000 women (accounting for challenged. At 1.6 percent, the share of the that employees can use to express their more than 40 percent of our employees) are workforce occupied by the physically opinions directly to the president. In working mainly as cabin attendants and challenged in fiscal 2004 was lower than the addition, the “ANA Virtual Hollywood” airport passenger service staff. We are also 1.8 percent mandated by law. Therefore, we program has been actively implemented, in actively recruiting women for Sogoshoku staff are reinforcing our approach in this respect which we place importance on and realize (sales / administration, engineering & and making efforts to creating workplaces new ideas from employees. maintenance) and cockpit crews. We were for the physically challenged.

Employees

Safe and Pleasant Workplaces

Education and Human Resource Program with Respect for Occupational Health Individual Performance and Safety

Amid the tremendous changes underway in Educational Schemes Approach to health and safety the current socioeconomic climate, more We believe that the assurance of employee Stratified education sophisticated expertise is needed for swift safety, health and a pleasant work Requisite education adaptation to change and execution of environment are fundamentals of corporate business, with its increasing degrees of Open seminars activity. Therefore, we have committees on Electives refinement and complexity. Our perspective safety and health in our offices nationwide. Aimed at the development of capabilities and deepening of on human resource development rests on expertise for strategic business tasks in areas such as These committees lead activities best suited pursuit of such expertise. Personnel must improvement of business skills, career development, to the situations in each office to prevent possess the ability required to maintain the internationalization, IT, CS, etc. risks and health hazards to our employees. fundamental quality of air transport Program for support of self-improvement services. Moreover, we support individual Corporate rates for correspondence and other schools, in-house Number of Work-related Accidents Over testing of language proficiency (TOEIC), etc. efforts to perform tasks and acquire skills the Last Three Years for the achievement of results beyond Global business training Fiscal 2002 40 expectations. More specifically, we have Joint seminars with Star Alliance members instated various educational schemes to Fiscal 2003 38 Internationalization training support the autonomous development of Systematic support for internationalization Fiscal 2004 41 skills by aspiring employees themselves Practical training overseas (US, Europe, Asia) based on our conviction that individual Study abroad program growth is linked to ANA’s advancement. Health management We have taken various steps for better management of employee health. Besides periodic health examinations that are more extensive than those stipulated by law, steps include subsidies for the cost of full physical examinations (through the health insurance society), health examinations upon mandatory retirement and the establishment of health consultation desks in every office. To maintain and improve mental health, we also have a program of regular

Seminar to experience services for the elderly and Seminar for strategic thinking and consciousness-raising check-ups and offer counseling services customers in wheelchairs (through the health insurance society) by professionals.

Respect for Human Rights

In order to comply with the trust placed in Office (Personnel Department)”. With a us by our customers and society, we full-time staff, it is the mission of the practice corporate management with an Office to draft campaign plans and emphasis on respect for human rights as support the activities of the “human one of our social roles. It is part of our rights enlightenment committee basic policy that, “as a company members” instituted in each advancing with society, we must work for business office. the resolution of various human rights problems existing in society.” To fulfill this policy, we have mounted a Group- wide campaign to enlighten all about human rights. This campaign is led by Illustration by Shizuko Onodera the “ANA Human Rights Enlightenment

Employees

Engagement with Stakeholders Employees

Safe and Pleasant Workplaces

Participation in the National Industrial Approaches Safety and Health Convention for Mental Health

Sponsored by the Ministry of Health, people participated. At the work group on In fiscal 2004, our Aircraft Maintenance Labour and Welfare and hosted by the safety management in the convention, Center was selected as “a model facility Japan Industrial Safety and Health Hiroaki Takei (member of the health and promoting mental health policies” due to Association (JISHA), the National safety committee in the Aircraft its being a business establishment that is Industrial Safety and Health Convention, Maintenance Department) presented the actively taking measures in this area. The the biggest event in labor administration, achievements in the Aircraft Maintenance selection was made by the JISHA, which was held at Osaka Castle Hall and 14 Center to more than 500 participants. was commissioned to carry out the other locations across the country in Entitled “For More Active Safety and project by the Ministry of Health, Labour October 2004. Altogether, some 15,000 Health Committees,” his presentation and Welfare. Together with supporting dealt with distinctive activities applying IT experts from the Association, the Center and the training of personnel to lead planned and implemented measures for them. It generated much interest, as the resolution of problems related to evidenced by the inquiries received from mental health and linked them to a more several companies subsequently. pleasant work environment. We are striving for further enhancement in the level of safety and health through such independent activities of the safety and health committees instituted in each office.

Employee Health and Welfare

– ANA Welfare Plan

To help our employees feel fulfilled and Outline of the ANA Welfare Plan motivated, we have well established Lecture on mental health programs for employee health and Health plan Support for physical and mental health management not only welfare in each stage of their lifecycles, Features of the Model Facility for employees but also their families from joining ANA to post-retirement Financial plan ○1 Training in active listening as part of managerial training for careers. The Plan is divided into six Assistance with funding for the future and purchase of homes managers and chiefs in the Aircraft Maintenance Department categories, and offers employees a Insurance plan ○2 Setting up a mental health care scheme, in coordination choice of schemes best suited for their Compensation for bereaved families, funding for education and with the Health Management Center, for employees that own particular lifestyle. group insurance plans offering compensation for family need such support We also instituted a “Cafeteria Plan” to members as well assist independent and self-help efforts Life support by employees. Leave for childbirth, childcare and nursing, and provision of housing for transferees and newlyweds

Leisure support Full assortment of recreational, cultural and sports activities through mutual aid associations

Second life Support for a fulfilling post-retirement life through measures such as life plan simulations, life plan seminars, and pension plans based on self-help efforts

Illustration by Shion Kosuge

Employees

Communication with Employees

Illustration by Shion Kosuge

Direct Talks Free Conversation Room

Since 2001, we have actively encouraged talks about 50 times on issues such as The Free Conversation Room is a BBS on direct dialogue between the president and management plans, what is expected of the Group intranet for the free expression of other members of top management with employees and current developments at the opinions by employees. In fiscal 2004, employees (mainly those on the front lines). business locations. employees posted nearly 400 messages, In these talks, the management covering content ranging from identification representatives share their thoughts on of safety-related problems and proposals matters such as the environment for service improvements, to impressions of surrounding the Group and their directions lectures by noted figures and observations for the future in their own words with the on recent trends. We hope that the chain of employees, who, in turn, directly express entries will generate unprecedented new how they see the situation and problems on ideas and insights giving rise to new the front lines to the top management. This developments. two-way communication cuts through any barriers between management and actual Lively exchange of views in a friendly atmosphere in a operations. In fiscal 2004, we held direct “Direct Talk”

ANA Virtual Hollywood

“Perhaps it has no direct relation to your and cultivate the growth of “people with could expect more widespread employee present work, and there is no unit assigned views outside the mainstream” in order to interaction at the grassroots level and to it in the company. It may not even have increase its ability to cope. breakthroughs where there are impasses. anything at all to do with our business. But ○2 Sanctioning autonomous activities outside In fiscal 2004, 34 employees (called you still want to do it anyway. Here, we the scope of the organization would be an “directors” in the program) made their provide a opportunity to help employees effective way to prompt action on themes proposals to executives and are working who have such desires pursue them.” that cannot be handled by the existing to realize them. In fiscal 2005, 21 So began our notice for the “ANA Virtual organization. Activities will be assisted by a employees followed them into this Hollywood” program, which grew out of the system enabling collaboration via the web. movement and are now taking action to following three perceptions. ○3 As by-products of this system affording implement their unique ideas. ○1 As the business climate changes in ways employees the opportunity to take up that extend beyond “conventional challenges of their own choice and concepts”, the company needs to discover encouraging their initiative, the company

Opportunity to exchange information and ideas across departmental and corporate borders

I am working on an idea of a spa at Haneda Airport using water heated by the thermal energy from test operation of aircraft engines. I am delighted to have taken part in the “ANA Virtual Hollywood” program because it gave me a chance to exchange information and ideas with other directors and members, across departmental and corporate borders. I made suggestions for the actual implementation of ideas that were somewhat vague from a corporate standpoint, and this gave me the opportunity to learn so much about the current status of the company that I had not known before. I must admit that it was hard to find the time for these activities (laughter). “ANA Virtual Hollywood” supports employees who have themes they want to pursue outside their regular duties. I consider myself really fortunate to be working at ANA.

Masahiko Kato Administration, Power Plant Maintenance Center, Engineering & Maintenance ANA Virtual Hollywood poster calling for “directors”

Employees

Engagement with Stakeholders Together with Our Stakeholders

Communication with Stakeholders

Customer Comments

Linking active dialogue with stakeholders One of the Courses of Action in our examined in the CS Promotion Committee to enhance our Corporate Philosophy states that we shall composed of executive officers of all be customer oriented. To put these words divisions. In addition, to feed information corporate value into practice, we have instated a “Closed back to customers, we profile instances of Loop” scheme as a mechanism for business improvement in response to company-wide problem-solving. customer comments in “Wingspan” (our

Every day, the ANA Group operates in-flight magazine) and on the ANA Sky approximately 900 flights carrying more Web (our website). than 120,000 passengers. Our Customer Being “customer oriented”, all Desk collects comments from these employees and executives truly recognize customers on our products and services that customer feedback is an important by various means, including telephone source of evaluation. The “Closed Loop” calls, e-mails and letters. We also have helps not only to resolve service issues extensive interaction with customers but also to instill the whole company with throughout the process from reservations, a CS-oriented mentality. airport services to in-flight services. URL Therefore, we have many opportunities to http://www.ana.co.jp/ana-info/blettine hear from our customers. Past “customer comments” Customer comments number about (*Currently available in Japanese only) 30,000 every six months. We store them in a database on our intranet, where they

can be checked by authorized employees. The “Closed Loop” is our cycle of collection and analysis of the views of customers and staff, from the service front line, which are then reflected in plans for goods and services and solution of problems.

Problems that are issues faced by

multiple divisions or those that cannot be Misae Koto solved through ordinary channels are Customer’s comments on ANA Sky Web Customer Desk,

Customer Relations, CS Promotion Closed Loop

Comments and requests ANA’s Commitment Front lines Customer Reports of the views from customers and staff

ANA values active communication with CS Promotion Office stakeholders. We try to get a firm Collection, sharing, analysis Appreciation of the overall picture and identification of problems to be solved understanding of their wants and needs by listening to their views. We believe that Ad-hoc subcommittees composed always responding to the expectations of of representatives of the key unit or related units stakeholders in business activities will Drafting measures for solution increase our corporate value. CS Promotion Committee The Customer Desk, where I work, Determination of measure execution provides numerous opportunities to hear directly from our customers. By actively Each department identifying the issues that need to be Execution of the measures focused on, we improve our services.

Together with Our Stakeholders

Labor-management Customer Comments Relations The following is an outline of some improvements that we made on the basis of comments received from our customers. The operations of the ANA Group depend on collaboration by people in a diversity Case 1 of positions. Communication among Customer comment employees and workplaces, and between “When I board an aircraft in a wheelchair, the difference in level labor and management, is of critical before the door always bothers me.” importance to the proper operation of

Improvement business. A high level of employee Installation of a slope to eliminate the difference (May 2005) motivation and skill is also of fundamental When the boarding bridge is attached to the aircraft, a difference in level importance to our business. Preparation is inevitable due to the operation of opening and closing the door. This of an environment to maximize these had inconvenienced passengers in wheelchairs. In May 2005, we began elements is consequently essential. installing slopes to eliminate this difference in airports across the country for smooth boarding of wheelchairs. With an awareness of these factors, we strive to build and maintain ties of mutual Case 2 trust and cooperation through extensive Customer comment discussion and dialogue between labor “It would be nice if I could check flight information via a mobile and management. At the same time, we phone.” contribute to society by maintaining a

Improvement constructive tension in these relationships Initiated a flight information service for mobile phones (June as we strive to ensure safety, improve our 2005) customer services and fundamental We have refined the system to provide comprehensive information on quality to fulfill our mission as an airline. flight operations of the day, accessible from mobile phones as well as from personal computers. In addition to information on individual flights, we also provide the latest information on the weather and the flight outlook.

Case 3 Customer comment “Passengers should not be allowed to bring pets into the cabin.”

Improvement Prohibition of pets in the cabin (August 2005) We allowed passengers to carry pets into the cabin on international flights, but discontinued this service from July 31st, 2005 in light of the need to maintain a comfortable cabin environment and following complaints from Illustration by Motoko Mitsuhashi passengers allergic to animals. We now ask passengers to check pets for transportation in the cargo compartment maintained at 15 - 20 degrees Celsius. This prohibition does not apply to passengers accompanied by guide (seeing or* hearing) or nursing dogs.

Illustration by Motoko Mitsuhashi

Together with Our Stakeholders

Engagement with Stakeholders Together with Our Stakeholders

Communication with Stakeholders

Communication with shareholders and investors (Investor Relations) Engagement with NPOs

At ANA, we consider our shareholders and Enhanced Communication investors as vital stakeholders and stay in We regard our ordinary general meeting of close communication with them. shareholders as a valuable opportunity for communication between our shareholders Prompt and Proper Disclosure of and executives. Therefore, we answer Information questions and obtain comments from as

Our financial statements, corporate plans many shareholders as possible. and other important management For analysts and institutional investors, information are posted on our website at we hold presentation meetings after the time of announcement. releasing the financial statements and JWS and ANA announcing our management strategy. Also URL The Japanese Association for Women in we upload the data used in these http://www.ana.co.jp/eng/aboutana/ Sport (JWS) is a non-profit organization corporate/ir/index_sm.html presentations to our website. In fiscal 2004, (NPO) that also serves as the secretariat

ANA’s president himself led such IR for the International Working Group on presentations three times in Japan (for the Women and Sport (IWG) for the “2006 annual, midterm financial statements and World Conference on Women and Sport” announcement of our medium-term to be held in Kumamoto next May. In our IWG role, we participated in strategy) and twice overseas (in Europe the “Sports Summit at EXPO 2005 Aichi” and the United States). on July 30 and 31, and were present at “the Besides the general meeting of announcement of the joint statement on shareholders, we solicit views about and sports and the environment,” which runs as requests for the ANA Group from follows. “We recognize that a healthy Top page of the ANA “Investor Information site” shareholders and investors on other routine occasions, such as corporate environment, with clean air and water, is a product of natural ecosystems and For our shareholders, we publish “ANA presentations and telephone calls, and essential for those who play sports. We relay them to the top management. Vision” (news report), on a quarterly basis. therefore declare that we are committed Besides reports on our business, this We strive to deepen support for the to reducing pollution and enriching the publication provides a wide range of Group among our shareholders by providing natural environment so that future information on current topics. For special discounts on domestic flights and generations can enjoy sports as we do shareholders and investors both within and coupons with privileges from our now.” outside Japan, we publish our annual subsidiaries. The role to be played by sports organizations in sustainable development report in Japanese and English every July is attracting increasing attention. ANA to present a detailed picture of our finances Capital Market Rating has long supported the activities of the and management plans. ANA’s website for Thanks to these positive approaches of JWS, and is planning to offer its investor information not only presents these ours, we were ranked second in the assistance for the “2006 World publications, but also provides financial transport industry and one of the five Conference on Women and Sport” in its and operational statistics. companies with the “biggest improvement capacity as an official partner. in disclosure” amongst all industries in the Etsuko Ogasawara disclosure survey conducted by the Executive Director, Security Analysts Association of Japan Japan Association for Women in Sports

(SAAJ) in fiscal 2004. In addition, we were given high marks for the editing and composition of our annual report and awarded “a prize for excellence” in the fiscal 2004 Nikkei Annual Report Award.

Selected as “one of the companies with the biggest improvement in disclosure” by the SAAJ

“ANA Vision” (published quarterly) and the “Annual Report” (published every July)

Together with Our Stakeholders

Approach to the Environment For contribution to a sustainable society

Environmental Activities of the ANA Group The airline industry imposes what is definitely not an inconsiderable burden on the environment through its consumption of fossil fuels and the accompanying emission of carbon dioxide. Bearing this firmly in mind, we intend to do our best to preserve the environment. We have entered an age requiring consciousness of our position as a global corporate citizen. Approaches to environmental problems are now the duty of everyone on our planet. Across the ANA Group, we actively endeavor to contribute to society through a heightening of awareness among our employees and participation in campaigns for environmental preservation under the banner “Thinking of People and the Earth.” As a member of society, we are determined to do what we can to help Japan and other countries restore the earth of its former beauty and create a global environment conducive to all living creatures.

Koshichiro Kubo Executive Vice-President

Approach to the Environment Philosophy and Management

Environmental Environmental Policy and Principles Management

ANA’s Commitment ANA Environmental Policy Compliance with Environmental Legislation

On December 17th, 1903, the Wright brothers Since 2002, we have been conducting studies ANA Environmental Policy and making provisions to ensure compliance made four flights, the total flight time lasting 98 seconds and covering a distance of 311 ANA’s Attitude towards the with environmental laws and regulations so meters. Since those first flights over a Environment that we can cope completely with the century ago, our aspirations for flight have demands of CSR and expansion of its scope. vastly broadened. The ANA Group has thus Basic Policy In fiscal 2004, we extended these activities to a wider circle of subsidiaries We will pursue: with a survey and assessment, in covering 337 million kilometers. Yet we must Protection of the environment cooperation with experts in each field, to do much more than flying; and indeed we are Effective utilization of limited natural resource confirm compliance with the law in terms of taking various measures to maintain our Awareness of the public good our industrial waste disposal. conscientious about the environment. For example, in order to reduce our consumption Survey of compliance and improvement of aviation fuel, which accounts for 98 percent Course of Action in offices across the nation of our total CO2 emissions, we take initiatives 1. We will evaluate the impact of our In fiscal 2004, we added four Air Nippon such as optimizing fuel efficiency and commercial activities on the facilities and seven ANA Hotels to our environment, and persevere in our regularly cleaning the engines. survey of legal and regulatory compliance, efforts to protect the environment. In the aspect of noise, too, almost all of which now covers 30 ANA offices and 27 2. We will observe environmental laws our aircraft already meet what are the and regulations, and furthermore, offices of 18 ANA Group companies. The world’s highest standards effective from think and act independently to survey identified 414 instances of concern, protect the environment. 2006. Furthermore, in 2008, we will welcome but no environmental incidents or 3. We will make our best endeavor to 50 of the “super efficient” Boeing 787 series legal/regulatory imposition of penalties. minimize the environmental impact to our fleet (making us the first airline in the arising from operations of the airline world to fly these models), in order to boost industry. Points for improvement identified by the survey 1 Clarification of the laws and regulations our fuel efficiency by 15 to 20 percent. 4. We will make every effort to save ○ energy and resources, to recycle We have posted mitigation of articles, and to reduce waste. ○2 Improvement in work procedures environmental impact as a goal in the ANA 5. We will contribute to the communities following legislative enactments and Group Ecology Plan 2003 - 2007. in which we live and work, through amendments Information on our efforts toward this goal participation in social activities on environmental protection. ○3 Promotion of recycling and achievements in fiscal 2004 are 6. We will educate employees so that presented on page 45 of this report. Further each may pay much more attention to Assessment of waste disposal firms environmental protection. details may be found in the ANA Group by third parties in the industry Environmental White Paper. In 2004, we asked three trustworthy waste- related companies to make an independent Tadashi Based on our Environmental Policy evaluation of firms commissioned by ANA Nishimura formulated in May 1998, we are vigorously Group companies to dispose of industrial Environmental and Social Affairs working for the preservation of the global waste, as a trial assessment. environment. In accordance with the Their expertise as disposal professionals action guidelines, we are taking a variety enables examination and evaluation of these firms from all angles. We believe it will of measures in each workplace towards such ends, including conservation of also help us to exclude unsuitable firms power and water, proper disposal of while heightening the motivation of Group waste and efficient use of energy. We companies for proper selection and engage in our duties with an awareness monitoring of such businesses. that approaches by the ANA Group, Assessment of a waste disposal firms by third parties in taking account of the global environment, the industry We don’t just fly. contributes to the sustainability of society. We fly with environmental conscientious.

Philosophy and Management

ANA Group Ecology Plan 2003 - 2007

In March 2003, we established the ANA including reflection of customer opinions in Group Ecology Plan 2003 - 2007, our latest our environmental management and further five-year plan for environmental action. The reduction of CO2 emissions in aircraft Plan manifests our determination to take operations. Illustration by Claire Ho Yan Yu Group-wide action on numerous tasks,

ANA Group Ecology Plan 2003 - 2007 and Review of Fiscal 2004

Item Aim Fiscal 2004 review Reference page

We confirmed the compliance status at 30 ANA business Environmental compliance Group-wide enhancement of legal management and P44 compliance facilities and 27 facilities of 18 ANA Group companies.

We participated in environmental events such as Ecolife Fair Environmental Reporting environmental issues to our customers and 2004, included environmental articles in the in-flight magazine – communication reflecting their views in environmental management “Wingspan” and reported environmental news on Internet TV Channel J. Promotion of Deployment of environmental management methods environmental ISO 14001 In fiscal 2004, we launched a conference of offices certified – management based on ISO 14001 throughout the Group under ISO 14001.

Accounting was confined to the four airlines (ANA, ANK, AJX, Environmental accounting Group-wide environmental accounting A-net), as in fiscal 2003, but improvements were made in areas P46 such as the items focused.

Promotion of transparent environmental management Held the 10th Group environmental liaison meeting to encourage Group Companies – among subsidiaries the spread of environmental management throughout the Group.

Reduction of the level of CO2 emissions per available Achieved a reduction by 10.5% relative to fiscal 1990 in fiscal Reduction of CO2 emissions P48 seat-kilometer in fiscal 2007 by 12% relative to fiscal 2004. Prevention of from jet fuel 1990 global warming Reduction of energy use in Reduction of the level of electrical and thermal energy Achieved a reduction by 7% relative to fiscal 2003 in crude-oil P47 facilities consumption in facilities by 5% relative to fiscal 2002 terms.

Retirement of B747 SR/LR aircraft that fail to meet ICAO Reduction of the level of HC Retirement of engines not meeting ICAO engine – emissions from aircraft emission standards standards in fiscal 2005.

Introduction of environment- Doubling of the share of all low-pollution and low- Prevention of Share increased by 147% (80 vehicles) relative to fiscal 2002. – air pollution friendly vehicles emission vehicles

We have had zero possession of specified CFC gases since Protection of the ozone layer Maintenance of zero emissions for regulated – substances fiscal 2003.

Reduction of Scheduled to attain the target of conformance by all aircraft by Conformance with ICAO noise All aircraft meeting the Chapter 4 standard by fiscal P50 flight noise levels (Chapter 4) 2007 the end of fiscal 2005.

Disclosure of actual recycling data on a yearly basis The amount of industrial waste derivation increased, but we toward the goal of zero emissions. Reduction of the Reduction of waste amount of industrial waste sent out for final disposal more than doubled our sales of scrap metal to recycling P51 businesses through efforts for reduction. to 15% by fiscal 2007

Increase the green purchasing rate to 100% for copier Resource Attained green purchasing rates of 30% for paper and 74% for Promotion of green purchasing paper and 80% for other office supplies by the end of P35 recycling other office supplies. fiscal 2007

Development of alternatives to substances covered by ( ) Reduction in use of chemical the PRTR Law and disclosure of actual data for Used 39 substances two more than in fiscal 2003 totaling – substances 25,300 kilograms (about 30% less than fiscal 2003). reduction on a yearly basis We held the Second International Environmental Picture Book Promotion of Holdin g an environmental picture book contest every Watashi no Environmental picture books year Competition, which attracted entries from a total of 382 people P55 Aozora in 13 countries. environmental Launche d extensive reforestation activities under a ten-year social Reforestation project Promotion of greening activities around the globe “Watashi no Aozora” plan. In fiscal 2004, we engaged in tree P52 (contribution ) planting and management of five forests in Japan. Also, we activities planted corals in Okinawa. * For more details on the Ecology Plan, please refer to the ANA Group Environmental White Paper.

Philosophy and Management

Approach to the Environment Philosophy and Management

Environmental Management

Environmental Accounting

We initiated environmental accounting in fiscal 2001 in order to obtain a quantified appreciation of the costs on environmental preservation activities.

Departments / Companies covered All ANA departments (excluding overseas offices); Air Nippon Co., Ltd.; Air Japan Co., Ltd.; and Air Nippon Network Co., Ltd. Period covered Fiscal 2004 (April 1st, 2004 - March 31st, 2005) Reference Environmental Accounting Guidelines published by the Ministry of the Environment of Japan

Fiscal 2004 Environmental Accounting (Million yen) Cost category Major activities Cost amount Fiscal 2004 Fiscal 2003 Pollution prevention Treatment of wastewater from washing aircraft and in-house kitchens 799 771 Costs within Introduction of highly fuel-efficient, energy-conserving aircraft, and the use of ground Global environment conservation 13,345 13,342 business areas power units for parked aircraft

Resource recycling Proper disposal of waste and promotion of waste reduction, sorting and recycling 707 714

Green purchasing of in-flight service supplies and conformance with the Container and Upstream and downstream 121 62 Packaging Recycling Law

Administration Cleaning of aircraft cabins, administrative personnel expenses, environmental education 5,725 5,721

Research for improvement of aircraft engine performance (fuel efficiency) and operational Research & Development 240 0 procedures

Publication of the First Prize entry in the International Picture Book Competition, planting Social activities 178 153 and maintaining forests and planting corals

Environmental remediation – –

Total 21,115 20,763

Purchase and leasing fees for highly fuel-efficient, energy-conserving aircraft account for more than 80% of the total of 13,345 million yen in expenditures for global environment conservation. * In the ANA Group, 10% of the depreciation costs accompanying such purchase or leasing is posted in the environmental account. *

Illustration by Kako Toyoshima ISO 14001 Environmental Management System Certification

In February 2002, Narita Maintenance Center of the Engineering & Maintenance Division, which is the key unit for the maintenance of aircraft on international routes, became the first facility handling aircraft in Japan to obtain ISO 14001 environmental management system certification from the United Kingdom Accreditation Service (UKAS). In February 2005, this certification was renewed under the 2004 edition, the latest version of the standard. Among facilities under our subsidiaries, Okinawa Harborview Hotel obtained ISO 14001 certification in March 2004.

ISO 14001 certificate

Philosophy and Management

Measures to Prevent Global Warming Energy Conservation Measures of Aircraft

ANA’s Commitment Energy Consumption

Inherent to our business is the consumption Across the ANA Group, based as it is on the Trend in energy consumption of natural resources and emission of carbon airline business, nearly all (98 percent) our Consumption of jet fuel, which accounts dioxide (CO2). This is exactly why we are energy consumption is of jet fuel. The for almost all of our energy consumption, making such diligent efforts in Engineering remaining 2 percent is energy consumption has been reduced by 1.9 percent (60,000 & Maintenance, Flight Operations and on the ground, which is equivalent to kiloliters: crude oil equivalent) from fiscal every other division to increase fuel 45,000 kiloliters of crude oil, of which about 2003. 80 percent (130 million kilowatt-hours) is Major factors efficiency and decrease CO2 emissions for electrical consumption. sustained harmony with the Improvement of flight operations Utilization of medium and small aircraft on global environment. In addition to daily domestic routes efforts to these ends, we decided in fiscal Breakdown of Energy Consumption in Fiscal 2004 2004 to purchase a number of the latest Ground energy Trend of Energy Consumption in Jet aircraft, which are environment-friendly as Jet fuel accounts for consumption 98% of the energy Fuel (crude oil equivalent) well as safe and comfortable. We are 2% consumption. (unit: 10,000 kl) always committed to taking good care of Fiscal 2003 314 the global environment in all of our flights. Total energy Fiscal 2004 308 consumption Masayoshi Kamata in the ANA Group : EFP Study Committee Member, 3.12 million kiloliters Flight Operations (crude oil equivalent) Electrical power consumption, which accounts for the majority of the ground Jet fuel 98% energy consumption, has been reduced by about 7 percent (10 million kWh) from fiscal 2003. Major factors Ground Energy Consumption As a result of various steady efforts, energy consumption decreased at about Supply of Others 3% cold water, 70 percent of the approximately 40 hot water, steam 2 % Electrical power facilities covered. Municipal gas 2% accounts for about 80% of energy consumption At the Business Center Building in on the ground. particular, factors such as more efficient Automobile fuel 14% operation of air conditioning systems Total energy reduced energy consumption by 11 percent consumption (5.37 million kWh) from fiscal 2003. in the ANA Group : 45,000 kiloliters The change of cables on the computer (crude oil equivalent) system which begun during fiscal 2003 Electrical power fully showed effect. 79% Trend of Electrical Power Consumption

(million kWh) Fiscal 2003 138

Fiscal 2004 128

With commitment to take good care of the global environment

Illustration by Kako Toyoshima

Measures to Prevent Global Warming

Approach to the Environment

Measures to Prevent Global Warming

Illustration by Yuka Higuchi Energy Conservation Measures of Aircraft

CO2 Emissions

To reduce emissions of CO2, the major Achievements in fiscal 2004 relative to 1990, and brought us closer to the cause of global warming, we are introducing In fiscal 2004, CO2 emissions from all ANA target of 12 percent. We have therefore the new B737-700 and B777-300ER series aircraft (domestic and international flights) already attained the corresponding target set to our fleet while also making greater use of came to 6.63 million tons, or 3.2 percent less for the airline industry by the Japan Business simulators and improving flight operations. than in fiscal 2003. In terms of available seat- Federation (a reduction of 10 percent in ASK For further reductions in the future, we have kilometers (ASK※1), emissions averaged terms relative to 1990 by 2010). placed an order – the world’s first – for 50 24.32 grams (of carbon equivalent) per ASK. ※1 Available Seat Kilometers : The available number of passenger of the new B787 series now under This represented a reduction of 10.5 percent seats multiplied by the distance flown in kilometers development. Trend of CO2 Emissions Per ASK

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emissions

) 2 Reduction of energy consumption at ground

facilities CO 21.0 2 Reduction of electrical power and thermal energy consumption by 5% relative to fiscal 2002 20.0 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2007 (FY)

Effective and Efficient Use of Fuel – Efficient Fuel Program (EFP)

We started the EFP, as a project for about 90 round-trip flights between Tokyo to Approach in fiscal 2005 business process reform under a New York) worth about 1.94 billion yen. We have positioned reducing fuel restructuring context in August 2003. consumption as an agendum for Aimed at reducing fuel consumption, EFP Trend of Fuel Consumption continued efforts to conserve the global is based on the promotion of flying at the on Domestic Service (relative to fiscal 2002) environment as well as to offset rising fuel optimal altitude and speed. We are working costs. In 2005, we will further promote (%)

to save fuel with consideration for the 4 flight operations at the optimal altitude balance between increased fuel Fiscal 2002 and speed, which has taken hold among 3 consumption and its effectiveness in Fiscal 2003 our cockpit crew over the last two years, shortening the flight time on domestic 2 Fiscal 2004 on the basis of safety. We are reviewing

consumption sectors (which are fairly short in duration), in 1 our operations to improving fuel

fuel

line with the operational guideline to avoid 0 consumption in all stages from departure in selection of altitudes and speeds solely for to arrival, for both fuel savings and -1

the purpose of shortening the flight. ease mitigation of the environmental burden. r -2

inc

of Achievements in fiscal 2004 -3 In fiscal 2004, we saved 31,300 kiloliters of Rate -4 jet fuel (or about 157,000 drums, enough for 4 5 6 7 8 9 10 11 12 1 2 3 (Month)

Measures to Prevent Global Warming

Non-aircraft Related Measures for Energy Conservation

Washing Engines Adoption of LED Flashlights for Better Performance

Our mechanics have switched to using light emitting diode (LED) type flashlights. Those used for aircraft maintenance consume an enormous number of type D batteries on night shifts (in fiscal 2002, ANA’s maintenance departments consumed 133,000 batteries). Therefore, we looked LED Flashlight into LED flashlights in July 2002. As a first step, the trial use of a selected product on the night shift in the aircraft Trend of D Battery Volume Used maintenance (dock) sections determined (unit : 10,000) that there was no problem with its use in the Fiscal 2002 13.3

docks, except that the illumination distance Fiscal 2003 11.9 Washing engines was short. Following this evaluation, we switched to LED flashlights throughout the Fiscal 2004 6.5 As engines are used, fine particulates dock at Haneda Airport from August 2003. build up in the compressors, degrading Through this replacement, we reduced with a sufficiently long illumination both performance and fuel efficiency. battery usage by 16,180 cells. This equates distance for use in the operation Washing dirty compressors with water to to a reduction of 1.6 tons of waste maintenance sections (line sections), and remove this grime restores performance (calculated in August 2004). introduced it to line sections in Haneda and enables fuel savings. At ANA, we We subsequently switched to LED Airport after a trial period. These began to periodically wash the engines flashlights at the docks at Narita Airport. In flashlights are expected to lead to a (compressors) on B777 aircraft in fiscal January 2005, we found a LED flashlight further reduction in the use of batteries. 2003 and A321 aircraft in fiscal 2004. We also wash engines on other selected aircraft at non-scheduled intervals. In Automatic Illumination Brightness Control fiscal 2004, we washed 133 engines to achieve savings of about 20,000 drums (or 4,000 kiloliters) of fuel. Currently, it The Okinawa Harborview Hotel adopted an electric power consumption for lighting by takes from three to four hours to wash a ice regeneration system and completely the amount of sunlight. In such ways, we single engine. We intend to expand the remodeled its power input and transformer are working to further save energy. procedure by developing simpler facilities to achieve more efficient energy URL procedures and tools for the engine wash. use. It also installed a luminescence- http://www.harborview.co.jp adjusting (dimming) system to reduce Okinawa Harborview Hotel

Lounge ceiling and luminescence-adjusting system The illumination in the lobby lounge and Illustration by Yuko Tsujita Printemps, a garden restaurant on the ground floor, is constantly adjusted to make maximum use of sunlight for indoor lighting. The lights are dimmed on sunny days and brightened on cloudy ones, for example. In addition, a system was installed for automatic adjustment of luminous intensity any time of day or night.

Measures to Prevent Global Warming Approach to the Environment

Measures to Prevent Noise

Measures to Prevent Aircraft Noise Other Measures to Prevent Noise

Types of Airport Noise Aircraft Noise Standards Noise reduction facility

at Narita Airport

The types of airport noise may be classified The International Civil Aviation As a measure to alleviate noise from test as follows. Organization (ICAO), under the auspices operation of engines on the ground, we Aircraft noise of the United Nations, has noise have constructed and operate hangar- Wind noise during take-off and landing standards for subsonic jet aircraft, i.e. type noise reduction facility together with Engine noise “Chapter 2 Standard,” “Chapter 3 the New Tokyo International Airport Ground noise Standard,” and the “Chapter 4 Standard” Authority (the current Narita International Operational noise from aircraft engines on (to be applied to new aircraft from Airport Corporation) and other airlines. At the ground January 1st, 2006). Narita Airport, the use of the facility is Operational noise from auxiliary power The majority of aircraft in the ANA mandatory for test operation of engines units (APUs) Group already meet the highest “Chapter late at night or early in the morning. Operational noise from ground power 4 Standard”.

units (GPUs)

Other sources (ground vehicles, maintenance facilities, etc.) Conformity with Noise Standards While the location of the airport is a major factor, we are taking various measures in ANA Group Ecology Plan 2003 - 2007 our capacity as an airline to abate noise stipulates that all Group aircraft must emission. comply with the “Chapter 4” standards by the end of fiscal 2007. To attain this goal, we are retiring the “Chapter 3” B747LR in December 2005 and the “Chapter 3” B747SR in March 2006.

ANA Group Ecology Plan 2003 - 2007 (excerpt)

Conformity with ICAO noise standards (Chapter 4) The entire Group fleet is to be brought into conformity with the Chapter 4 Standard by the end of fiscal 2007.

Illustration by Hiromi Suetake

Measures to Prevent Noise

Measures to Prevent Global Warming

Approach to the Environment

Resource Recycling Illustration by Yoko Mizumoto Waste – Current Status and Countermeasures

Derivation of Waste Reduction, Reuse, Recycling

In fiscal 2004, approximately 21,000 tons of To ease the environmental effects of our activities, we are promoting the 3R (Reduction, waste were derived throughout the entire Reuse, Recycling) activities for waste. ANA Group. Of this total, general waste from aircraft (toilet and cabin refuse) accounted Measures for Reduction and Reuse for three quarters, while waste derived on the Waste Measures Notes ground was the remaining quarter. Under the Revision of the method for measuring the aircraft center of gravity category of industrial waste, the primary Measurement without discarding fuel on board constituent was waste plastic at about Remolding (repair) of aircraft tires for reuse Use up to six times 32 percent. We are therefore focusing on Repair of aircraft windows for reuse Development of a repair procedure reduction of cabin refuse and waste plastic. Purification of paint thinner and other solvents used in aircraft Industrial ANA Aircraft Maintenance Co., Ltd., ANA painting work for reuse Techno Aviation Co., Ltd. waste Reuse of activated carbon used in cabin air conditioning Breakdown of Waste Derived in Fiscal 2004 systems and treatment of the wastewater (intermediate water) from aircraft hangars Industrial waste Reduction of detergents for cleaning engine parts Cleaning of parts using ultra-high pressure 10% water spray General waste Excrement (ground) 60% Presorted collection of refuse Empty bottles and cans from the aircraft (cabin) 14% Group total : General Reducing the on-board waste volume Installation of a trash compactor on B747-400 29,600 tons waste and B777 aircraft on international routes Cabin refuse 16% Review of in-flight service items (types and quantities) Termination of warm paper hand towel service

General waste (cabin) Use of rain water and treated kitchen wastewater Treatment and reuse of 576,000 tons at two Water (intermediate water) facilities

Breakdown of Industrial Waste In fiscal 2004, several departments at which opened in February 2005, to reuse Volatile oils 2% Others 9% Haneda Airport moved from Terminal 1 to them. Terminal 2 upon completion of the latter in In relocation from the former Nagoya December. In the process, some 225 tons of Waste plastic 32% International Airport to the newly opened Waste alkali 7% furnishings, including desks, chairs and Central Japan International Airport, we made

lockers, were no longer needed. We continued use of about 230 tons worth of the Sludge 8% Group total : 2,194 tons transported these furnishings to our new 308 tons of furnishings that were no longer

Waste oil 11% offices in Central Japan International Airport, needed at the former but capable of reuse.

Scrap metal 31% Recycling in Fiscal 2004 (achievements)

Waste Airport Recycled item Amount

Aircraft engine parts, aluminum Trend of waste derivation Metal material 11.46 million yen scraps from repairs, etc. In fiscal 2004, our waste derivation increased Aircraft engine parts Haneda Fashion accessories Few dozen items by about 6 percent (1,258 tons) from fiscal Vinyl sheets for protection of Haneda Solid fuel and garbage bags 6 tons 2003. The main cause was an increase in cargo from rain and dust industrial waste due to the disposal of office ID plate for cargo containers Haneda Iron and auxiliary fuel materials 220 kilograms equipment with the opening of Terminal 2 at Cargo containers Haneda and Narita Aluminum material 4.74 million yen Haneda Airport. We are going to make All airports in Japan Toilet paper 108 tons continued efforts for reduction. Used ticket stubs Nagoya and Kushiro Fans and signboards Approx. 2 tons

Trend of Waste Derivation Other Recycling Measures

General waste (cabin) General waste (ground) Waste Recycled items Industrial waste (ground) In-flight magazines and timetables Name cards, picture books, etc. Fiscal 2003 15,483 2,575 1,644 Paper cups used for in-flight service Toilet paper, etc. Fiscal 2004 15,744 Cabin seat covers Socks, blankets, etc. 3,022 2,194 Cabin carpet Solid fuel, etc. 0 5,000 10,000 15,000 20,000 25,000 (Tons)

Environmental Preservation Activities

Environmental Preservation Activities

Environmental Conservation Activities

To be a company that Watashi no Aozora (My Blue Sky) Environmental Conservation and Restoration cares about people and – ANA Reforestation Program – Collaboration with Kyoto University the earth The ANA Group serves 50 airports In December 2004, the ANA Group signed

Michiko Ikeda nationwide. In 2003, we launched a an agreement with the Field Science Environment and Social Affairs Department program for planting and maintaining Education and Research Center of Kyoto forests in the vicinity of four or five airports a University, which is pursuing research year for the twin purposes of greening and related to preservation and restoration of the prevention of global warming. Under this natural environment, on collaboration with program, our employees work together with field activities in their research. volunteers in local communities as well as Based on this agreement, we provide metropolises such as Tokyo and Osaka. assistance and support for community In fiscal 2004, a grand total of about 900 education conducted at stations in forest, participants planted trees at Chitose, village and marine areas owned by the Hakodate, Haneda (Izu), Matsuyama and Center. For its part, the Center holds outdoor Miyazaki. We will continue cooperating with field seminars in the context of our Watashi no the community to “green” Japan. Aozora (My Blue Sky) reforestation program. We are also joining the Center in planning “Field Tour (tentative name)” eco-tours to study environmental issues. In collaboration with the Center, we are promoting extensive environmental conservation activities.

The Field Science Education Planted trees in the Amagi Yugashima district of Shizuoka and Research Center and ANA Prefecture (October 2004)

The characteristics of Japan’s nature lie in its

forests, rivers and the sea. The relentless Team Chura (Beautiful) Coral pursuit of material affluence in the 20th century eventually inflicted serious environmental – Planting Corals in Okinawa damage, especially on the linkage between

these irreplaceable natural environments. Together with 12 other companies both within The Field Science Education and ANA’s Commitment and outside Okinawa, we formed Team Chura Research Center was founded within Kyoto

Coral, which is engaged in ongoing activities to University in April 2003. Our approach is to restore the rapidly diminishing coral reefs of link forestry and marine studies, which have conventionally been studied separately, as We are promoting environmental the island, which will protect the marine “Connected Rings of Forest-Human conservation activities to meet the Group habitats and the beautiful ocean. The group Habitation-Marine”, a new form of slogan: “Thinking of People and the Earth.” invites local elementary school students to integrated, interdisciplinary domain. Our aim In one of the activities, we are planting trees take part in environmental forums on the is to achieve a revival of the natural ocean mechanisms and the seas surrounding environment and renewal of the sense of value around airports under the Watashi no in linkage based on the principle of Okinawa. It also promotes the planting of Aozora (My Blue Sky) program. We solicit coexistence between man and nature. cultured corals by volunteer divers. The volunteers to plant trees from among our This new discipline emphasizes growth of the planted corals can be confirmed employees. Besides helping to preserve the coordination with pioneering activities of social on the group’s own website. contribution. This led to the agreement on environment, these activities serve to raise education about environmental renewal in awareness about environmental issues URL forests, human habitation and marine fields http://www.anamanza.co.jp/marine/coral among the participants. concluded with ANA in December 2004. In Growth record of planted corals line with this agreement, we are holding field We are also planting corals off the coast ( ) *Currently available in Japanese only seminars as part of ANA’s Watashi no Aozora of Okinawa. reforestation program, and look forward to the Environmental conservation activities Photograph taken at the coral planting (April 2005) developing variety of activities. by the ANA Group have just only begun. Masaru Tanaka D.Agr. We are determined to continue taking Director, active steps to demonstrate our corporate Field Science Education and Research Center, Kyoto University dedication to people and the environment.

Resource Recycling

Approach to the Environment

Assessment by Third Parties Illustration by Saya Aramaki

Assessment by Rating Agencies

Rating for Sustainable Management

Since fiscal 2002, we have participated in the 2003, we were selected as one of the 11 “best- scope and the surveyed items and subjects. “Sustainable Management Rating” that was practice” companies out of a total of 75 rated, We received “excellent” ratings in almost all begun in that year as a nationally subsidized with the recognition that we could serve as a categories. project. (The ratings are conducted by the model for other companies in respect of clear Similarly, in an environmental rating by the Sustainable Management Forum of Japan and disclosure of CSR-related information by the US firm, Innovest Strategic Value Advisors, the Sustainable Management Rating Institute, top management. In fiscal 2004, the third year, we received an “A” rating and were ranked special non-profit organizations that research the organizations began to apply a five- grade fifth among the 13 major airlines around the and rate management in this respect.) In fiscal rating system and expanded both the world.

First Sustainable Management Third Sustainable Management Ranking (fiscal 2004) Ranking (fiscal 2002)

J. Green purchasing C. Compliance J. Resource recycling S. Continuous and waste reduction employment opportunities I. Business locations K. Waste disposal and formation of social assets I. Reduction of the environmental K. Management T. Formation of chemicals H. Pollution B. Corporate burden R. Fulfillment of a safe and healthy (air, water, soil) L. Eco design governance of transportation of responsibility work environment C. Risk D. Risk to consumers management Q. Harmonization R. Concern management with the local for consumers B. Corporate G. Hazardous community governance chemicals M. Logistics L. Prevention/resolution of soil contamination H. Prevention U. Equal opportunities P. Corporate F. Resource S. Labor health of global warming Q. Contribution ethics and safety to regional A. Management D. Information recycling A. Management N. Environmental E. Information lifestyles philosophy disclosure reports and philosophy and accounting disclosure and accountability communication T. Equal opportunity V. Balanced work E. Global O. Resources/energy, G. Reduction P. Continuity and personal life warming environmental of the environmental M. Conservation and creation efficiency burden of products of water resources of regional and services and water quality culture Social contribution Economic prosperity Environmental (management dependability) conservation and fairness ( social, ethical, cultural) W. Support for F. Quantitative environmental material N. Conservation O. Sustainable and social activities and energy of biodiversity corporate of suppliers consumption culture

Management Environment Society Second Sustainable Management Ranking (fiscal 2003)

J. Water resources and quality

I. Prevention K. Protection R. Continuous of soil of the natural employment contamin environment opportunities ○C K.Mita SMRI Q. Concern C. Compliance H. Management for consumers S. Labor safety of chemicals L. Green and hygiene D. Risk procurement/ purchasing management P. Harmonization The three domains (branches), i.e., management, environment and society, B. Corporate G. Resource T. Equal Sustainable M. Eco- with the local are divided into survey items (leaves) indicated by letters of the alphabet. governance recycling community opportunity management E. Information and waste design The three leaves for each item stand for strategy, system and achievements, disclosure U. Women’s social rating tree respectively. Ratings are represented by the color of the leaves. advancement F. Global warming O. Corporate A. Management and support prevention N. Logistics culture philosophy and energy for their employment very good good fair poor not applicable conservation strategy First and second ratings no leaf Management Environment Society system fallen leaf

excellent very good good fair poor not applicable Third rating Achievement no leaf fallen leaf

Corporate Data

Corporate Data

Financial data

Operating revenue Operating income (loss) (%) 0 3 6 9 Fiscal 2000 12,796 Fiscal 2000 822 6.4

Fiscal 2001 12,045 Fiscal 2001 229 Operating income (loss) 1.9 Operating margin Fiscal 2002 12,159 Fiscal 2002 -25 -0.2

Fiscal 2003 12,175 Fiscal 2003 343 2.8 6.0 Fiscal 2004 12,928 Fiscal 2004 777

0 3,000 6,000 9,000 12,000 15,000 0 300 600 900 (Hundred million yen) (Hundred million yen)

Net income (loss) Number of employees (consolidated)

Fiscal 2000 402 Fiscal 2000 29,358

Fiscal 2001 Fiscal 2001 -94 29,095 -282 Fiscal 2002 Fiscal 2002 28,907

Fiscal 2003 247 Fiscal 2003 28,870

Fiscal 2004 269 Fiscal 2004 29,098

-300 0 300 600 0 28,000 29,000 30,000 (Hundred million yen) (people)

Operational data

Passengers Cargo Domestic International Domestic International

45,509 434 Fiscal 2000 4,378 Fiscal 2000 193

45,796 387 Fiscal 2001 3,438 Fiscal 2001 153

47,133 384 Fiscal 2002 3,783 Fiscal 2002 196

44,784 414 Fiscal 2003 Fiscal 2003 3,301 220 44,485 422 Fiscal 2004 4,116 Fiscal 2004 234

0 10,000 20,000 30,000 40,000 50,000 0 100 200 300 400 500 (unit: 1,000 people) (unit : 1,000 tons)

Assessment by Third Parties

Information about the Cover Art and Illustrations

This report contains illustrations from entries that won the First Prize, Special Prize and Second Prizes in the Second Aozora International Environmental Picture Book Competition.

Front and back covers : First Prize entry “Ten-san, Kame-san & Muri-san Go on a Journey” Mei Matsuoka

Text illustrations : Special Prize entry and Second Prize entries

Special Prize “A Present from the Rainbow,” Kako Toyoshima p46, 47

Second Prize entries “SOS from the Earth” Yuka Higuchi p48 “Love the Earth” Yuko Tsujita p13, 49 “We’re All Friends” Shion Kosuge p38, 39 “The Mutterings of a River” Motoko Mitsuhashi p41 “Emiko and the Two Chicks” Hana Rude p32 “Because it’s Not Just Ours!” Mana Fujiu p36 “WHEN THE SKY IS...” Claire Ho Yan Yu p33, 45 “Fairy Larry in the Forest” Saya Aramaki p31, 53 “Rafflesia” Ryosuke Fujiki p10, 35 “To Live” Yukiko Abe p14, 25 “Mother Nature Grandpa’s Vegetable Patch” Miyuki Tanaka p19, 25 “Moving Time for Peter the Mole” Chiori Fuyuki p20 “Our Friends” Hiromi Suetake p50 “The Rabbit’s Starry Sky” Yoko Mizumoto p51 “Our Planet” Sachiko Makiyama p27 “Our Powers” Fujiko Tamizu p29 “The Comet’s Path” Shizuko Onodera p37 “Rainbow” Rosemary Grimble p16

URL http://www.ana.co.jp/ana-info/ana/ehon04 Information on the First Prize entry and Special Prize entry and a list of the Second and Merit Prize entries in the Second Competition (*Currently available in Japanese only)

Aozora International Environmental Picture Book Competition

Our management philosophy emphasizes our commitment to being a familiar presence and to offer dreams and experience to people around the world. We are working to fulfill this commitment in all aspects, and the environmental aspect is no exception. We have positioned environmental conservation as one of our top priorities, and undertaken studies to seek what action we should take to put our philosophy into practice. As one of the environmental activities, we came up with the idea of holding this competition. The competition is open to people of all ages in all countries. Entrants will consider how to clearly convey environmental issues to children as tomorrow’s leaders, in terms they understand, through a picture book. We hope that the submission of entries will serve to stimulate thoughts on environmental problems.

Corporate Data

All Nippon Airways Co., Ltd.

●

Contact for our CSR activities Corporate Social Responsibility Office Shiodome City Center, 1-5-2 Higashi-Shimbashi, Minato-ku, Tokyo 105-7133 Japan TEL : +81-3-6735-1080 FAX : +81-3-6735-1085 E-mail : [email protected]

●

Contact for our environmental activities Environment and Social Affairs Department 3-3-2 Haneda Airport, Ota-ku, Tokyo 144-0041 Japan TEL : +81-3-5757-5202 FAX : +81-3-5757-5048 E-mail : [email protected]

●

http://www.ana.co.jp

This report was prepared with This report was printed with water-free printing to prevent environment-friendly soy ink. the derivation of hazardous wastewater.

Information about the Cover Art and Illustrations