ANA Group Unveils a New Network Model for the Okinawa International Aerial Logistics Hub

•New operations will strengthen aviation network by utilizing passenger flights at Naha Airport.
•Move will transform Okinawa into the node of a logistics network connecting overseas locations and destinations across Japan.

TOKYO, Jan. 29, 2021 -ANA HOLDINGS INC. (hereinafter "ANA Group"), together with Okinawa Prefecture, will strengthen the international logistics operations at Naha Airport in Okinawa. By shifting from the preexisting logistics operations centered on freighters at Naha Airport, ANA will expand the usage of the cargo capacity of passenger aircrafts of Peach Aviation and other airlines to create a new model for the Okinawa International Aerial Logistics Hub. Through this new approach, ANA will expand its network to meet the growing needs around Asia as demand increases from a rise in e-commerce and delivery of other products.

"Global logistic networks and supply chains have significantly changed over the past few years, which is why ANA is working to evolve our approach so that we can, in partnership with Okinawa, continue to serve emerging needs and meet demand," said Toshiaki Toyama, Executive Vice President of ANA and President of ANA CARGO INC. "Building on our longstanding relationship with Okinawa, we look forward to the success that this new network model approach brings to better connect Japan to global markets."

1. Overview
Over the past 10 years, the ANA Group has worked in close partnership with Okinawa Prefecture to establish the location as a major hub for international logistics, greatly contributing to the development of networks within Japan and across Asia. Since the project first began a decade ago, the total volume of cargo exports from Okinawa has grown 120 times.
Currently, the aviation network of the Okinawa International Aerial Logistics Hub is primarily serviced by ANA freighters. However, due to the widespread impact of COVID-19, all operations specializing in freighters have become suspended at Naha Airport, and ANA has decided to extend the suspension in FY 2021 as well.
At the same time, the growing popularity of products from Okinawa and across Japan has led to a growth in the total exports from the island, which includes agricultural and marine products as well as industrial products. Furthermore, the rise in e-commerce has led toa greater need for delivery and logistics services, . and cargo transportation is expected to reach a greater number of destinations while also operating at a higher frequency.
Given these factors, the Okinawa International Aerial Logistics Hub will shift towards a new operation model that can manage sustainable growth while meeting the diverse needs of consumers. The ANA Group will continue to cooperate with Okinawa Prefecture to contribute to the formation of an international logistics base by shifting from the previous model centered on ANA freighters to a new model that utilizes the passenger-cargo space of aircrafts operating at Naha Airport.

2. New Network Model of Okinawa International Aerial Logistics Hub
The new model for the Okinawa International Aerial Logistics Hub will create a network utilizing the cargo capabilities of passenger flights offered by all airlines operating at Naha Airport, including flights operated by Peach Aviation. ANA Group will overseethe cargo operationsthrough establishing an agreement contract with other airlines and efficiently manage the utilization of each cargo space., In addition, while airlines continue to suspend international flights due to the outbreak of COVID-19, ANA will operate freighters between Okinawa and the Tokyo area (Haneda/Narita) to maintain the logistics supplychain until global conditions allow for the resumption of international flights.

■Image of Okinawa International Aerial Logistics Hub

Once international flights resume, by utilizing the cargo space of passenger flights to and from Naha Airport, it will be possible to transport cargo to a wide range of destinations more frequently and to expand delivery for smaller volumes as well. Furthermore, by utilizing the cargo space of international passenger flights, ANA will be able to strengthen alliances with othercompanies and further developthe Okinawa International Aerial Logistics Hub in order to best serve both passengers and cargo.

3. Utilization of the New Network Model
(1) Sustainable development of a distribution network that connects overseas and Japan'scities via Okinawa
There are currently a total of 20 domestic routes that ANA Group offers to Naha Airport. As ANA has signed a space usage contract with airlines that operate international flights to Naha Airport, together with the domestic flight networks of ANA Group that connects Naha Airport to cities across Japan, ANA will work to revitalize the logistics operationsto a wide range of locations and support the continued development of the international logistics hub, which is an industrial promotion measure of Okinawa Prefecture. In addition , ANA will contribute to the continued expansion of Okinawa's agricultural and marine exports by distributing them from locations in each region of Japan to international destinations viathe Okinawa International Aerial Logistics Hub.

■Transport route image

(2) Raising the value of freight operations at Okinawa
ANA Group will utilize domestic flights from Okinawa to Tokyo and onboard international routes departing from the Tokyo area. ANA will also work to strengthen priority loading and transportation of goods in cold storage on domestic and international flights. This is particularly important for cargo originating in Okinawa, which has a large amount of agricultural and marine products requiring cold storage. To achieve this, ANA has increased the use of cold storage containers, thermal blankets*1 and securing cold storage at transit points to keep products fresh during transportation. In addition, ANA will be cooperating with partner airlines to improve the quality of cold insulation on flights operated by other airlines.