Press Release

Aug 16,2011

Corporate

Qantas Group, Japan Airlines and Mitsubishi Corporation to form Jetstar Japan

Qantas Group, Japan Airlines and Mitsubishi Corporation to form Jetstar Japan

Low fares leader to fly domestically in 2012

The Qantas Group, Japan Airlines Co., Ltd (JAL) and Mitsubishi Corporation announced today the launch of Jetstar Japan - a new domestic airline that will bring more low airfares to customers in Japan.

The Qantas Group, JAL and Mitsubishi Corporation will each hold 1/3 share in the new company (voting-rights-basis).

Jetstar Japan will commence domestic operations by the end of 2012 and expects to fly from Tokyo (Narita) and Osaka (Kansai International), with other destinations under consideration including Sapporo, Fukuoka, and Okinawa. Jetstar Japan also plans to ultimately offer short haul international services to key Asian cities making travel more accessible and appealing to millions more people.

The airline will launch with an initial fleet of three new Airbus A320 aircraft, configured for 180 customers in a single class, growing to 24 aircraft within its first few years. Total capitalization commitment for the new airline is up to 12 billion yen.

Qantas Chief Executive Officer, Mr. Alan Joyce, said the establishment of Jetstar Japan was an historic and important step for the Qantas Group.

“The Qantas Group has a long history of serving the Japanese air travel market, with Qantas and Jetstar operating regular services between Australia and Japan,” he said.

“Qantas and JAL have a long-standing relationship, as codeshare partners and fellow oneworld alliance members. We are also delighted to be joining with Mitsubishi Corporation- one of Japan’s great global brands - to launch Jetstar Japan, building on the successful expansion of the Jetstar brand across Asia.”

“The Qantas Group has a wealth of experience in establishing low cost carriers and we’re looking forward to working with our two partners on this new venture which will offer low fares to the Japanese travelling public. “

Jetstar Japan will be officially launched in Tokyo today by the President of Japan Airlines, Mr. Masaru Onishi, Executive Vice President & Group CEO, Industrial Finance, Logistics & Development Group Mitsubishi Corporation, Mr. Hideshi Takeuchi, and Jetstar Group Chief Executive Officer, Mr. Bruce Buchanan.

JAL President Mr. Onishi said the partnership with Jetstar is a two-airline strategy that will allow the Japanese carrier to competitively serve a larger part of the Japanese market.

“ We are confident that Jetstar Japan will broaden the spectrum of travellers as it creates new demand in this market,”said Mr. Onishi.

“It will encourage even more movement of people within the country and also increase the number of visitors from Asia to Japan. We anticipate this to stimulate consumer spending and play a role in revitalizing the Japanese economy.”

Mr. Takeuchi said: “Jetstar’s entrance to Japan, as a proven successful low cost airline operator, will revitalize our domestic air transportation market. That is the reason for our participation, and we would like to support Jetstar Japan’s success in Japan as well as eastern Asia with our variety of services such as aircraft leasing.”

Jetstar was the first low fares airline to enter Japan in 2007, and has already carried more than two million customers between Australia and Japan.

Jetstar’s low fare model enables people to fly more often and encourages many people to fly for the first time. This new airline will help to stimulate the local tourism industry and broader economy.

The new venture confirms Jetstar’s status as the Asia Pacific’s largest low cost carrier by revenue as well as its fastest growing, having carried almost 20 million people in a single year just seven years after launching.

Strengthening its commitment to encouraging new travel demand, Jetstar Japan fares will be covered by its Price Beat Guarantee to ensure it is always the most competitive in the market place.

＜New Company Outline＞

Company Name： Jetstar Japan Co., Ltd (plan)

Address： TBD

Capital： 1/3 each for Qantas, JAL, Mitsubishi Corporation (Voting rights base)

（Total investment base: Qantas 42%, JAL 42%, Mitsubishi Corporation 16%）

*Opportunities exist to further broaden the Japanese shareholder base to gain access to additional business opportunities in the Japanese market.

Base： TBD

Paid-in-capital： Initial capital JPY 4.8 Billion increasing to up to JPY 12 Billion post commencement of operations

Fiscal year ending：June

Number of employee: 150 people in the first year (increase to 800 within a few years)

*Company representative will be determined once the company is formally established.

We expect to establish Jetstar Japan and lodge application for Air Operators' Certificate in September 2011.

Media contacts:

PR Agency; Ogilvy PR, Miho Tanaka/ Yufuko Toyoda/ Hiroko Okita

TEL: 03-5793-2334/ 2382/ 2384 Mobile: 090-1122-9877/ 080-2094-9814/ 090-7414-8670

Email: Tokyo.jetstar@ogilvy.com

<Japan Airlines>
Corporate News Group

TEL: 03-5460-3109

Email: sze_hunn.yap@jal.com

<Mitsubishi Corporation>
Corporate Communications Dept., Press Relations Team

TEL: 03-3210-2172

Background Fact Sheet

About Jetstar’s existing Japan operations

· Jetstar Airways currently flies long haul services with its fleet of Airbus A330 two class aircraft from both Tokyo and Osaka to Cairns and the Gold Coast in Australia, and from Singapore (via Taipei) to Osaka with Jetstar Asia’s short haul A320 fleet.

· Since the launch of long haul services in March 2007, Jetstar has become the largest carrier operating services between Australia and Japan and has carried some 2 million customers on its value-based services.

· In 2009, Jetstar was named one of the 100 Best Brands at the 20^th annual “Japan’s Best Advertisers” Awards ceremony.

About the Qantas Group and Jetstar

· The Qantas Group’s two complementary flying brands, Qantas and Jetstar, give it unique strength in terms of scale, network and customer reach.

· Qantas is Australia’s largest domestic and international airline and is ranked among the world’s leading premium carriers. Jetstar is one of the world’s fastest-growing and most successful low-cost carrier brands, operating in Australia, New Zealand, the Pacific, and throughout Asia.

· Jetstar is a low fares network of airlines operating in the leisure and value based markets. The Jetstar Group is made up of Jetstar Airways in Australia and New Zealand together with Jetstar branded airlines, Jetstar Asia based in Singapore and Jetstar Pacific based in Vietnam. Jetstar was the first to offer low fare long-haul international services in 2006.

· Jetstar’s mission is to offer all day, every day low fares to enable more people to fly to more places, more often.

· The Jetstar Group is the largest low cost carrier in the Asia Pacific by revenue and has flown over 75 million customers since it launched in 2004. It is also the region’s fastest growing airline, carrying almost 20 million passengers a year just seven years after start up.

· By end-2011 the Jetstar Group will collectively offer more than 3,000 flights a week to over 60 destinations in 17 countries and territories across the Asia Pacific region with a fleet of 86 aircraft.

· The Jetstar Group employs more than 7,000 staff across Asia Pacific.

About Japan Airlines

· Japan Airlines (JAL), awarded the most punctual major global airline in 2009 and 2010, is a member of the oneworld^(R) Alliance.

· JAL is a full service carrier with an international network reaching more than 225 airports in 38 countries and regions together with its codeshare partners. From its bases in Tokyo’s Narita Airport and Haneda Airport, as well as Osaka, Kansai, JAL operates non-stop flights serving destinations in North America, Asia, Europe, and Sydney in the Oceania region.

· Domestically, the airline covers more than 50 airports throughout Japan with its largest operations at Tokyo, Haneda.

· JAL operates an average of approximately 22,000 international and domestic flights a month, with a fleet of some 200 aircraft that includes Boeing 777s, 767s, 737-800s, and Brazilian-made regional jets, Embraer E170.

· Japan Airlines' frequent flyer program, JAL Mileage Bank (JMB), is one of the world's largest loyalty programs, with over 23 million members worldwide today.

Company name	Japan Airlines Co., Ltd.
Address	4-11 Higashi-Shinagawa 2-chome, Shinagawa-ku, Tokyo
Representative	Kazuo Inamori (Chairman), Masaru Onishi (President)
Date of establishment	October 1, 1953
Capital	205 billion yen
Number of employees	13,114 (as of July 1, 2011)

About Mitsubishi Corporation

· Mitsubishi Corporation (MC) is Japan’s largest general trading company (sogo shosha) with over 200 bases of operations in approximately 80 countries around the world, including Japan.

· In addition to its six Business Groups (Industrial Finance, Logistics & Development; Energy; Metals; Machinery; Chemicals; and Living Essentials), MC has added two new Groups, the Business Service Group and the Global Environment Business Development Group.

· Through these organizations and more than 500 subsidiaries and affiliates, MC serves customers around the world in virtually every industry.

Company name	Mitsubishi Corporation
Address	2-3-1 Marunouchi, Chiyoda-ku, Tokyo
Representative	Ken Kobayashi (President and Chief Executive Officer)
Date of establishment	April 1, 1950
Capital	204 billion yen
Number of employees	5,665 (as of March 31, 2011)