Anniversary Greetings

axesscope 20th

AXESS International Network http://www.axess.co.jp/eng/

No.

APRIL-2011

42

Anniversary Greetings from AXESS President and a Stakeholder

I would like to extend my congratulations to AXESS on its 20th anniversary. Sabre has had a very successful partnership with AXESS since 1995, the year in which we established the AXESS's joint venture with Japan Airlines. Since then, we have introduced and integrated into the AXESS GDS our world leading air pricing as well as car and hotel reservation systems. Today, one of AXESS' key strengths is its hybrid offering of local products that meet the Japanese market needs together with Sabre's strong global functionalities that have made Sabre the leading GDS in the world. We are especially delighted with the introduction in 2007 of AXESS Pro-Fare, Sabre's powerful state-of-the-art pricing system that has since been enthusiastically received by the Japanese travel agency community. We believe our strong partnership with AXESS will ensure that AXESS remains the leading GDS in Japan for years to come.

Appreciation for your support on our 20th anniversary It is a big pleasure for me to announce that this year is the 20th anniversary of the foundation of AXESS International Network Inc. We owe a great deal of our success in keeping the biggest share of the Japan GDS/CRS market since AXESS's foundation to your support. We celebrate with joy and gratitude. All along, we have worked together with you and promise to continue making a substantial contribution to your business. Recently there has been no year without a change in the airline and the travel industry. 2011 is no exception, mainly because of the Japan Civil Aviation Bureau policy, known as JCAB's deregulation of international airfares, the open sky policy and the adoption of Anti-Trust Immunity. It is expected that more new airlines including LCC will count in Japan and more airlines and alliance fares will be produced. We are keenly aware of such changes and are offering convenient solutions and high-quality services to relieve you of business-related stress regarding that. That is our mission, and we find happiness in serving our customers. We would like to make 2011 the right year for our 20th anniversary with all of you. I would appreciate your continued support !

Greg Webb,

Hoshiko Nakano

President, Sabre Travel Network

President and CEO AXESS International Network Inc.

New Vice President of Sales & Marketing Shoichi Yamamura

I assumed the position of Vice President of Sales and Marketing in November 2010. P re v i o u s l y, I w o r k e d i n t h e C o r p o r a t e S a l e s Department at Japan Airlines International. This is my first time in the GDS/CRS business, and I am delighted to work with all our participant airlines. In Japan last year, there were a number of positive factors for the airline and travel industry, such as the increased slots at Narita Airport and the internationalization of Haneda Airport. Also, airlines increased their flights and the

deregulation of fares was conducted. Following such events, diversity in airfare can be expected in 2011. AXESS pledges to provide ample support in both our systems and operations to respond to the requests of airlines and travel agencies. Thanks to you, AXESS celebrates its 20th anniversary this year. We will continue to give our best effort to improve our system services for you, and we look forward to your continued support in the years to come.

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Progress of AXESS Products Alteration of the AXESS terminal AXESS CREA/ AXESS InformationWeb

AXESS Ⅱ : Dedicated line/Reservation & Ticketing

AXESS CREA: Internet line/Reservation & Ticketing AXESS Neo: Internet line/ Reservation

AXESS Pro-Fare A new fare system that utilizes the latest industry technology went into operation in October 2007. The frequency of fare data update from ATPCo/SITA increased and the time frame of data reflection shortened. Thus the accuracy of fare display and itinerary pricing improved. AXESS Pro-Fare enables 100%. automatic fare calculation based on an airline's intention.

Ticket Runner Ticket Runner, a highly effective tool to improve the business efficiency of travel agencies, was released in January 2011. By only registering certain information in advance, it enables the ticketing process independently without bothering travel agents. Tickets for both published and unpublished fares can be issued more easily and accurately.

From April 2009, there was a nationwide shift of AXESS terminals from AXESS Ⅱ to AXESS CREA, from a dedicated line to Internet. There is also a guide function that makes it easier for beginners to follow. Along with the shift to AXESS CREA, AXESS InformationWeb was also renewed. Not only was its design improved, but new functions such as banner display and links to various airlines' websites were also added.

100% E-ticketing By June 2008, AXESS had completed the transition to 100% E-ticketing. Currently, 84 AXESS participant airlines have E-ticketing function.

XML Interface AXESS has offered XML interface for booking engine since 2002 and now there are 2,334 sessions used in the Japanese market.

Twenty years of Market Relaxation of Airfare Regulations, System Improvements The original model of the current air fare structure in Japanese market dates back to 1994. The Net Remit Fare Scheme

travel agencies have returned the IATA license to reduce costs and consolidate ticketing at specific locations, a trend that is

implemented in that year led to an increase of IT Fare transactions and eventually resulted in the new arrival of "Zone PEX" Fare. The Zone PEX fare scheme is a regular trade discount fare that

likely to continue. From 2010 to 2011, big changes are on the way; fares have made a transition toward a government approved maximum fare filing

helped to increase the demand for international travel from Japanese consumers. In 1998, the minimum limits on IT Fare were abolished, and the so-called "deep discount tickets" became wildly popular.

system from the previous individual approval system. New filing procedures will reduce numbers of JCAB filing for airlines, and is expected to encourage expanded use of private fares. As the Japanese market adjusts to these changes, we can expect to see

In terms of commission, in 2000, commissions for travel agencies

stable demand. The AXESS Pro-Fare, a well-reputed fare system reflects the

on BSP tickets in transactions carried out within Japan were liberalized, and Japanese airlines drastically reduced their commissions to 3% from 7% in 2007. Since 2008, more and more airlines have adopted a zero commission policy, and now a large majority of the airlines have followed suit. As a result, many 2

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intentions of the airlines more accurately and has the absolute trust from both travel agencies and airlines. *The Number of IATA locations in Japan: 521 (As of January 2011) AXESS covers most of them.

s 2006 a2011

Congratulatory Messages from AXESS Participant Airlines

AXESS MIDT AXESS MIDT was introduced in April 2006. As AXESS retains the largest BSP Japan market share, AXESS MIDT can assist airlines' market analysis in sales, marketing, route/capacity planning, pricing and distribution perspectives.

MATIP AXESS switched its old communication protocol with participant host systems to Mapping of Airline Traffic over Internet protocol, MATIP. This shift increased the transmission rate between AXESS and other link products such as Direct Access, Direct Sell, Multi-Japan and E-Ticket. MATIP has also reduced communication costs.

Future Plans will plan to develop Electronic Miscellaneous 1 AXESS Document functions for airlines in compliance with the IATA target date. This will help the airlines reduce their distribution costs and support sales of ancillary services, such as excess baggage fees and lounge access vouchers. will maintain an advanced and reputable fare system 2 AXESS for the Japanese market. This will help us support all fares, including Net fare distribution, in accordance with the new IATA/BSP Japan regulations. XESS intends to support superior reservation functions 3 Asuch as Married Segment Control, O&D and Journey Data.

Expansion of Airports in Tokyo Narita Airport Narita Airport opened in May 1978 and by 1997, 300 million international passengers had passed through the airport. It is ranked 8th in the world in terms of the number of passengers. Now, further developments are expected; 80,000 landing slots will be added, resulting in a total of 300,000 slots per year.

Haneda Airport Haneda Airport is the nation's largest airport, and handling 336,000 flights and 61,930,000 passengers a year. It is one of the few airports in Japan capable of 24-hour operation. Haneda had been worked mainly as domestic airport for a long time except few scheduled charter flights to Guam or Asian destinations. In 2010, a new control tower, runway, and an international terminal were completed, raising the annual arrival and departure capacity to 407,000. The regular international flights serving 17 cities have also been well received both in Japan and abroad.

Congratulations to AXESS International Network on their 20th anniversary. In a fast-changing travel industry with remarkable IT innovation, AXESS has been able to maintain the No.1 CRS position in the Japanese Market as a result of tireless efforts in technological innovation and distinguished customer support. Twenty years ago when the overseas traveler numbers were soaring, we couldn't have predicted the stagnation that would follow the boom. However, we hope that our companies will make even more progress together in the coming decades as you continue to be a reliable bridge between airlines and travel agencies. Congratulations on your 20th anniversary!

Air France - KLM Japan would like to express our heartfelt congratulations on the 20th anniversary of AXESS International Network Inc. We started working together with AXESS during its foundation days, as a joint-developer of the MULTI JAPAN function. The advanced functionality of various tools provided by AXESS, supported by high standards of help desk assistance towards customers, sets the quality standard of service in the Japanese market. Current worldwide business circumstances require more flexible, speedy and effective changes to meet various customer needs. Air France - KLM will do its utmost to serve as a reliable airline operator connecting Japan to the world. We are confident that AXESS and Air France KLM will continue to remain close and efficient business partners for years to come.

Mr.Byung-Chan, Kwon Regional Director & Managing Vice President, Japan Korean Air

Mr.Bernard Aubreton General Manager for Japan Air France - KLM

On behalf of Delta Air Lines, I am pleased to extend my congratulations to AXESS as they celebrate 20 years of service in the Japan market. This is a particularly exciting event and Delta is very proud to join the celebrations as one of the first airlines to partner with AXESS. The primary benefit I see from partnering with AXESS is Mr. Jeffrey S. Bernier its tremendous presence throughout the Japan market. Managing Director As the largest GDS/CRS in Japan, AXESS has unrivaled Pacific Sales and Affairs Delta Air Lines, Inc. penetration throughout the country, not only with the large major travel agencies but also with midsize and smaller distributors. Of particular importance is AXESS's strong presence within the corporate market and the associated "in-house" travel agencies. Based on feedback from travel agencies, it is clear that their preference for AXESS is its strong backoffice support system provided in Japanese. I also find it interesting to watch AXESS continue to grow its awareness by leveraging new technology; for example creating its own "Twitter" account. I applaud AXESS's continuous efforts to provide new solutions and services for both travel agencies and airlines. From the airline perspective, I appreciate its building up of the current platform to make it more capable of supporting our distribution efforts, particularly as it relates to revenue management initiatives. To ensure the continued prosperity of the industry, Delta Air Lines looks forward to continuing to work together in strong partnership with AXESS to provide tools that benefit everyone. Once again, my congratulations to AXESS on your 20th anniversary. axesscope No.42

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AXESS Airline Seminar

"Hot discussion on Business Travel Management!" On Tuesday, September 8, 2010, the AXESS Airline Seminar was held at Tokyo International Forum. 85 participants representing 45 airlines took part. In addition to the panel discussion on the Business Travel Management, BTM, AXESS presented new products and talked about charter flight ticketing, and an airline that has already used charter flight ticketing with AXESS gave a presentation. Three companies took part in the BTM discussion: BCD Travel, an airline and AXESS. The panelists talked about such issues as how web booking is being used in the Japanese market and related matters, differences in similar services abroad, transferring of PRISM( ※ ) data using an AXESS back-office system called URI-Pro, and distributing corporate fares filed using CAT 25/35.

charter flight support and other services. We would like to continue in our corporate efforts as we support airline businesses in the future." AXESS has received considerable praise for the seminar from airline participants who said that it was an excellent opportunity for them to get direct, unfiltered information about the BTM, among other things. AXESS intends to continue focussing on timely topics and host seminars that are valuable to the airlines. *PRISM Group is a global technology company specializing in information systems and consulting for the travel industry.

In the AXESS presentation, the handling of charter flight ticketing was demonstrated, as well as Ticket Runner and Ticket Navi, AXESS’s new products. An airline gave a practical example of the use of chartered flight ticketing using AXESS. They explained how using AXESS improved operational efficiency and gave a concrete description of the steps. At the reception after the seminar, President & CEO Hoshiko Nakano said,"We take pride in contributing to the businesses of our esteemed airline clients using CAT 25/35 functions, Prism tools,

FAQ

AXESS UPDATE

Q A

We are making plans to migrate our host system. Please advise on the migration procedures for AXESS.

New Participants

CT Air One CityLiner S.p.A. KF Blue1 Oy

Direct Sell

Please contact your AXESS account manager first for him/her to make the necessary internal arrangements. Once the host migration timeline is settled, inform your account manager as soon as possible so that AXESS can schedule the development timeline and arrange the development resources.

JJ TAM Linhas Aéreas S.A. MD Air Madagascar VV Aerosvit Airlines

Locator Display

Q

Is it possible for AXESS to read the numbers of free baggage allowance accurately? How can we update registered data?

A

Yes, AXESS reads the pieces of free baggage allowance numerically. For any amendments, please file the data on ATPCo on or after April 2011. The data you have filed on ATPCo will be reflected on AXESS automatically.

KF Blue1 Oy

Direct Access Plus

KF Blue1 Oy

Multi Japan HA Hawaiian Airlines

AXESSCOPE Editing Section: Sales & Marketing, AXESS International Network, Inc. Sea Fort Square Center Bldg., 2-3-12 Higashi Shinagawa, Shinagawa-ku, Tokyo 140-8619, Japan e-mail: [email protected] Phone:+81-3-5460-7017 Fax:+81-3-5460-7009 SITA: TYOPFJL http://www.axess.co.jp/eng/

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