ANA to Change Company Structure in Move toward
Reform of Management of ANA Group

1 April, 1999 - All Nippon Airways (ANA), this week announced a significant reduction in the size of its Board of Directors in a move toward changes in the management of the ANA Group. The size of the current Board of Directors will be reduced following the annual ANA shareholders meeting in June but, as a preparatory measure, Board Members' responsibilities and the overall company structure will be reorganized as of April 1, 1999. The announcement was made on 30 March in Tokyo.

ANA President & Chief Executive Officer, Kichisaburo Nomura, explained, "The potential for a protracted economic recession coupled with the revision of Japanese accounting and financial systems will result in big changes in the Japanese business environment. At the same time, in the aviation industry specifically, we are encountering new management challenges as demonstrated by the entrance of other players into the Japanese market and by intense pricing competition.

"In the face of these conditions, ANA has to reform the operation of the Group in order to improve profitability and strengthen our balance sheet. Changing our organizational structure to give management the capacity to make swift and timely decisions on policy direction and to effectively carry out these policies is key to achieving this kind of reform."

ANA embarked on a three year Corporate Restructuring Plan in June of 1998. The Plan is currently being updated to include concrete measures to further accelerate and deepen restructuring efforts. However, the reform of the Board of Directors and overall organizational structure of the company is critical as a base to support the effective implementation of these measures.

A brief summary of changes may be found below:


I Changes in Board Structure

Swift decision-making power will be supported by a streamlined board structure.
1. Revision of Board Members�� responsibilities (enacted during period from April 1 until June shareholders meeting)
2. Reduction in number of Board of Directors (from 31 to 19, effective immediately following the shareholders meeting in June)
3. Flattening of organizational structure through suspension of position of Senior Managing Director (effective immediately following the shareholders meeting in June)
4. Flattening of organizational structure through suspension of position of Chairman and Advisor in associated businesses (effective immediately following the shareholders meeting in June)
5. Introduction of age limitation and fixed term to position of Senior Advisor for ANA and associated businesses
6. Further reduction of Board Member salaries

II Keiei Senryaku Committee*

A Keiei Senryaku (Corporate Strategy) Committee will be established to support the Board of Directors in planning basic management policy for the ANA group, enabling swift, effective decision-making and action on concrete measures. The 7-8 members of the committee will be designated by the CEO & President of the company, who will act as Chairman of the Committee. Following the establishment of the Keiei Senryaku Committee, the company will cease to hold the former Senior Board Member Meetings.


III Organizational Structure*

The main new divisions resulting from the reforms will be as follows:
Shacho Shitsu (Chief Executive Planning Department)

Function: To support and assist the Keiei Senryaku Committee in developing and implementing core business strategies. To assume a strong leadership role in reforming ANA Group management and in increasing revenues.

Marketing Shitsu (Marketing Department)
Function: Function: To prepare for ANA's entrance into the Star Alliance in October of this year by implementing a strategic framework for cooperative activities and strengthening divisions within the company related to Star Alliance activities. To create a new brand identity and develop customer services.

Kanren Jigyo Shitsu (Associated Businesses Department)
Function: Function: To work in close cooperation with the Shacho Shitsu to swiftly implement concrete policies related to the radical reorganization of the associated businesses.

Zaimubu (Corporate Finance Division)
Function: To promote improved management of the ANA Group from an accounting and financial perspective.

BPR Suishin Shitsu (BPR Promotion Division)
Function: To improve the efficiency of general administration within the company and to work in close cooperation with the Shachoshitsu and the Information Technology Division to substantially lower fixed costs and improve the efficiency of the group.

(BPR: Business Process Re-engineering)

Details of measures to be implemented as part of ANA's "acceleration and deepening" of restructuring efforts will be released when determined, at a later date.

* The final English names of the above divisions or groups will be released along with further details of the new structure at a later date. The names in parentheses are direct translations only.

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