All Nippon Airways (ANA), and Hokkaido International Airlines (Air Do) today signed a basic alliance agreement to start code-share operations and implement a variety of measures aimed at realizing efficiencies and enhancing services and revenues.
“By providing more frequencies and increased convenience between Tokyo`s Haneda airport and Sapporo, this is yet another way we are ensuring the competition in the Japan market remains forever in our rear view mirror,” said Yoji Ohashi, ANA`s president and CEO. “However, the real winners in this agreement will be travelers and the local economy of Hokkaido.”

“This is the first phase of Air Do`s restructuring program under the terms of the Civil Rehabilitation Law that will permit the company to reinvent itself as the `Wings of Hokkaido` while still providing the same low fares on an even lower cost base,” said Koichiro Ono, executive vice president. “ANA is proud to be providing Air Do industry-leading managerial expertise in a variety of functions to enable it to rationalize costs and stabilize sales revenues.”

The basic alliance agreement between ANA and Air Do is essentially a contract whereby the basic foundation of airline operations will be entrusted to ANA in order for both to realize greater efficiencies on a larger scale of economy. The items of which will be implemented individually and successively.

Details of the proposed points of the basic alliance agreement may be found below.

1.Code-share: - Apply the ANA code designator to all six roundtrip flights operated by Air Do between Tokyo (Haneda) and Sapporo (Chitose) starting February, 2003. - ANA will purchase 50% of Air Do`s seating capacity utilizing a hard-block method. - Establishment of fares and seat allocation to be managed independently

2.ANA able (Reservations, Ticketing, Boarding and Settlement System): - Air Do to switchover to ANA`s able system. - Reservations and ticketing start December, 2002. - Boarding and settlement functions start February, 2003. - Reservations and ticketing on Air Do flights expanded to all travel agencies (approx. 800, approx. 6,500 machines installed) contracted to use the able system throughout Japan. - ANA Reservations Center to handle Air Do flights beginning December, 2002, significantly increasing answering hours and other performance percentages. - Check-in and ticketing on Air Do flights will be possible at ANA manned and automated check-in and ticketing counters at both Tokyo`s Haneda and Sapporo`s Chitose airports in addition to services already provided at Air Do`s counters starting February 2003.

3. Aircraft Maintenance Operations: - Implementation starts October 2002 -  Introduction of aircraft commonality, Air Do to receive access to spare engine parts from ANA fleet of over 50 Boeing 767 aircraft. - Transfer of heavy engine and other maintenance operations to ANA.

4. Other: - Joint aircraft parts purchasing, flight and cabin crew training and shared use of training facilities.

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