Press Release

JAL & Galaxy Expand Domestic Cargo Code Share Agreement

- Inauguration of Late Night Flights Serving Osaka, Tokyo and Sapporo -

Tokyo March 26, 2007: Japan Airlines (JAL) and Galaxy Airlines (GXY), a new Japanese domestic cargo airline, plan to expand their code share agreement from April 3, 2007 to include Galaxy Airlines operated late night flights serving Osaka, Tokyo and Sapporo.

With the introduction of its second Airbus A300-600R freighter aircraft, Galaxy Airlines will start operating a 6 flight per week late night cargo service serving Osaka (Kansai), Tokyo (Haneda) and Sapporo (Chitose) from April 3, 2006.

Subject to the approval of the Ministry of Land, Infrastructure and Transportation, the current code share agreement between the JAL and Galaxy will be expanded to allow JAL to place its `JL' flight numbers on these new Galaxy operated flights. JAL will buy part of the freight space of the A300-600R, which has a maximum payload of 47 tons.

Galaxy Airlines first started operating in Japan on October 31, 2006 between Tokyo (Haneda) - Kitakyushu, and Tokyo (Haneda) - Okinawa (Naha) using an Airbus A300-600R freighter. On November 7 2006, JAL inaugurated a code share agreement with Galaxy Airlines on these routes with the objective of expanding its share of the cargo market within Japan.

Currently JAL holds a 10% investment in Galaxy and provides the new airline with support in flight operations, maintenance and airport cargo handling

Galaxy is majority-owned by S.G. Holdings Co. Ltd., formerly known as the Sagawa Kyubin Group, a domestic small package express delivery company.

New Code share Flight Planned Schedule

GXY = Galaxy Airlines / JL = Japan Airlines

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