All Nippon Airways (ANA) today submitted an application to the Ministry of Transport in Japan seeking approval for the start-up of a new international airline, Air Japan Co., Ltd.

Subject to government approval, Air Japan, which will be operated under the framework and operating license of the now-dormant World Air Network (WAC), will begin daily scheduled service January 1, 2001 between Osaka (Kansai) and Seoul, using a Boeing 767-300ER with 216 seats in two classes, leased from ANA.

Air Japan will be a member of the ANA Group, offering the same high standards of safety and reliability consistent with the ANA Group brand. ANA will handle maintenance and sales for the new airline, in addition to code-sharing on Air Japan flights, which will be operated under the Air Japan code.

ANA President and CEO Kichisaburo Nomura explained, "Under our Medium-term Corporate Plan, covering the four-year period ending March 2003, we are reorganizing ANA's international route network to boost profitability. Air Japan is part of our overall international route network strategy. By gradually transferring to Air Japan selected short and medium-haul routes currently operated by ANA, and by reorganizing ANA's international route network at our Narita and Kansai hubs, we will be able to improve network efficiency, profitability, and connectivity. This will result in a more competitive and flexible ANA Group in which the different airlines can meet specific network needs."

"This is an exciting time for Air Japan and for the entire ANA Group", said Air Japan President and CEO, Taketoshi Watanabe. "Air Japan will play an integral role within the Group by providing scheduled service to destinations in Asia and resort destinations, including service on routes such as Osaka-Guam and Osaka-Honolulu. After the opening of Narita's second runway in 2002, we plan to further expand operations to include routes from Tokyo, building a network that meets customer needs to a number of destinations in the Asia-Pacific region.

Air Japan has capital of JPY500 million (US $5 million) and has its headquarters in Tokyo. In addition to receiving flight crew support from ANA, for the initial period of operations, Air Japan plans to hire Japanese pilots between 60-62 years of age (although ANA has a retirement age of 60 for all employees, commercial pilots' licenses in Japan are valid until age 63) and Japanese cabin crew. However, Air Japan is also studying the possibility of hiring non-Japanese nationals as flight crew in the future.