Japan faces aviation challenges

10 Mar 2017 2054 | Business & Trade Fairs

TOKYO Japan needs to initiate improvements to its airport infrastructure, especially in Tokyo ahead of the country’s hosting of the 2020 Olympics, International Air Transport Association’s CEO stated in presentation earlier this week in Tokyo

Japan has set aggressive targets for attracting international tourist arrivals. In 2016 Japan welcomed some 24 million international tourists.

In the 2020 Olympic year, Japan hopes to welcome 40 million visitors, who are expected to spend some USD70 billion (JPY 8.0 trillion).

The 2030 target will stand at some 60 million overseas visitors with expected tourism receipts of USD130 billion (JPY 15.0 trillion).

However, IATA warned the country needs to improve airport infrastructure urgently and should consult with the various sectors of the airline industry to deliver “joined thinking”.

Successful infrastructure planning will play a key role in the continued growth of tourism in Japan, IATA said.

It noted that the development of Tokyo-Haneda’s international network, the privatisation of Sendai and Osaka’s Kansai and Itami Airports; and continuous efforts to improve competitiveness by reducing costs and optimise infrastructure were are welcome developments.

“Not that long ago Japanese airports were the most expensive in the world. They are not cheap today, but Kansai and Narita have dropped from among the 10 most expensive to 13th, and 23rd, respectively,” said IATA’s director general and CEO, Alexandre de Juniac, in a speech delivered Thursday to the American Chamber of Commerce in Japan.

“We are moving in the right direction, but there is still more to be done — particularly at Haneda which is bucking the positive trend by raising charges.”

IATA is calling for economic regulation of airports to ensure that there is a proper balance of public and commercial interests when charges are set. As critical national infrastructure, airports must play a role in building national competitiveness. However, as monopoly service providers there is not always the incentive to do so.

“It’s a real issue for airlines. To be successful in a highly competitive environment, airlines have restructured and improved the efficiency of their operations. Doing so has allowed them to improve profitability even as average airfares fell by 45% since 2000. Over the same period, on a global basis airport costs have risen by some 29%,” said de Juniac.