OCTOBER 24TH, 2014

Hokkaido Air System to Become Subsidiary of Japan Airlines

TOKYO October 24, 2014: Hokkaido Air System (HAC) has become a subsidiary of Japan Airlines (JAL) following JAL completed a qualifying transaction to hold up to 51.2% of the shares in HAC on October 23, 2014.

HAC network including flights to/from remote islands such as Sapporo (Okadama) = Rishiri route and Hakodate = Okushiri route, has been recognized the important transportation across Hokkaido by local residents.

With the success of this acquisition, JAL will support HAC to improve its sales performance and further strengthen its management competence as well. After becoming a subsidiary of JAL, HAC will continually strive to be the most preferred and reliable regional airline in Hokkaido.

Japan Airlines will continue to enhance its network, the quality of products and services in order to provide customers with more convenience.