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JAL International Enters Into Plea Agreement with the U.S Department of Justice Concerning International Air Cargo Business

JAL Memo :JAL International Enters Into Plea Agreement with the U.S Department of Justice Concerning International Air Cargo Business

On April 16, 2008 (U.S time) Japan Airlines International Co., Ltd (JALI), the main airline operating subsidiary of the JAL Group, entered into a plea agreement with the United States Department of Justice (DOJ) in which JALI agrees to plead guilty concerning certain alleged violations of the antitrust laws in the U.S./trans-Pacific international air cargo business and to pay a fine of US$110 million (equivalent to JPY 11.0 billion yen approx).

The United States Department of Justice has been conducting an investigation of the international air cargo business since February 14, 2006. JALI has cooperated fully with the DOJ in this regard. Japan Airlines Corporation - the JAL Group holding company - and JALI, after comprehensively considering the factors including the applicable laws and facts, have reached the conclusion that entering into a plea agreement with the DOJ is the best resolution for JALI in the circumstances.

Japan Airlines Corporation set aside a reserve of approximately 11.5 billion yen for a potential DOJ fine in this matter when it announced on November 6, 2007 its consolidated half-year results for the six months ending September 30, 2007.

The JAL Group´s policy is to conduct its business in full compliance with all laws and regulations, including those relating to competition, in all jurisdictions in which it operates. The company will not tolerate any behavior that contravenes such laws and regulations. The JAL Group will determinedly continue to expand and reinforce its current antitrust compliance program.

 

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