Nippon Cargo Airlines (NCA), today received a Business Improvement Order (“Order”) from the MLIT due to violations of Article104 Paragraph 1, Article76 Paragraph1, and Article 20 Paragaph2, of Civil Aeronautics Law of Japan, which are (a) inappropriate maintenance for the aircraft structure, (b) the report delay to the MLIT, and (c) organized manipulation and concealment of corresponding maintenance records.

We sincerely apologize for the inconvenience that we caused our customers as NCA was grounding all aircraft from 17June through 4July, 2018 to confirm aircraft safety for above mentioned violations. While 2 aircrafts (JA18KZ and JA05KZ) started operation, most of our services are still suspended.

We are re-evaluating our internal processes and controls since our analysis and preventive measures for the “Written Warning” NCA received from the MLIT on 5 October, 2016 did not prevent these same types of discrepancies in our operation.

NCA is utilizing a third party company to assist in evaluating the root causes of our failure and examine preventive measures immediately, and report it to the MLIT by a date.

All aircraft currently operating have been confirmed to be airworthy and safe. The remainder of the fleet is undergoing the same inspection, and we will inform the schedule updates as soon as it is decided.

NCA will unite and make every possible effort toward re-starting a safe operation with a feeling “reproduce company from ZERO”.

We sincerely apologize for the inconvenience and worries that we caused our customers. We will do our utmost effort to conclude the safety checks for resuming the operation as quick as possible.