Ｍｉｎｉｓｔｒｙ ｏｆ Ｌａｎｄ, Ｉｎｆｒａｓｔｒｕｃｔｕｒｅ, Ｔｒａｎｓｐｏｒｔ ａｎｄ Ｔｏｕｒｉｓｍ ＪＡＰＡＮ ＣＩＶＩＬ ＡＶＡＴＩＯＮ ＢＵＲＥＡＵ

CURRENT APPROACHES TOWARD FURTHER ENHANCEMENT OF AIRPORT MANAGEMENT IN JAPAN

Emiko Araki Japan Civil Aviation Bureau (JCAB) Ministry of Land, Infrastructure, Transport and Tourism(MLIT)

Ministry of Land円、 Infrastructure, Transport and Tourism Contents

１．Background - Airport management in Japan - Socio-economic motivation for reforms

2. Examples (Current approaches for enhancement of airport management) - NKIAC (Merger of KIX and ITM) - “National Airports” Airport development status in Japan (As of September 2012)

Rebun WakkanaiWakkanai Administrator 2012.7～ Rishiri

Monbetsu Corporation 3 Memanbetsu Asahikawa

Sapporo Nakashibetsu Central Government Chitose

20 New Chitose Okushiri (JCAB) Obihiro Kushiro

Hakodate Local Government 67 New CHITOSE Aomori MOD(Ministry of Misawa Odate Noshiro Defense) 7 Akita Tanegashima Or US Armed Forces Hanamaki Shonai Yakushima

Sado Yamagata Total 97 Noto

Niigata Sendai Okinawa-Islands Oki

FUKUOKA Komatsu Fukushima Amami Toyama Izumo Miho Kikai Iwami Tajima Tsushima Fukui Tottori Matsumoto Kita-kyushu Tokunoshima Iki Hiroshima Osaka Nagoya Hyakuri Yamaguchi Ube Okayama International Chofu Okierabu Ojika Hirosima-nishi Konan NARITA Fukuoka Kobe Tokyo Narita Yao International Kamigoto Takamatsu Shizuoka International Yoron Saga Oita Iejima Kansai Central Japan International Aguni Fukue Nagasaki Matsuyama International Oita-keno Tokushima Oshima Kochi Nijima Kumejima Kitadaito Kumamoto Naha Amakusa Nanki-shirahama Kozushima Minamidaito Miyakejima HANEDA Kerama Kagoshima Miyazaki KANSAI CHUBU Shimojishima Makurazaki NAHA Tarama Hachijojima Yonaguni Miyako Ishigaki

(New Ishigaki) Hateruma Airport Operation and Management

Key Facility Air Traffic Passenger Airport Operator Runway Taxiway Apron Control Terminal Facility

Haneda JCAB JCAB JCAB JCAB JCAB Private Company

Private Private Private Private Narita JCAB Private Company Company Company Company Company

Private Private Private Private Kansai JCAB Private Company Company Company Company Company

Private Private Private Private Chubu JCAB Private Company Company Company Company Company

Other Hub JCAB JCAB JCAB JCAB JCAB Private Company Airports

Regional Local Local Local Local Local Gov / JCAB Airports Gov. Gov. Gov. Gov. Private Company Trend change in domestic air passenger in Japan The number of domestic air passengers Trend change by purpose of trip (1981 to 2010) (1981 = 100)

（million） （％） 60 400

50 350 仕事Business 300 40 仕事Business 250 観光Sightseeing 観光 30 200 Sightseeing

150 帰省・ 20 帰省・私用 Homecoming Homecoming 私用 100

10 その他Other 50

0 0

1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2010 Motivation for reforms based on socio-economic background

Efficiency and effectiveness • Airport management is top agenda, as investment in airport development has become the final phase • Japan’s stable growth rate leads austerity measures

Flexibility • Ensuring user-friendly airport management for competitiveness of airports • Meeting local demand for revitalizing local economy by attracting more tourists etc. at the midst of aging society Contents

１．Background - Airport management in Japan - Socio-economic motivation for reforms

2. Examples (Current approaches for enhancement of airport management) - NKIAC (Merger of KIX and ITM) - “National Airports” NKIAC’s approach for enhancement of management

Kansai International Airport (KIX) Osaka International (Itami) Airport (ITM)

［ The day of opening of the airport ］ ［ The day of opening of the airport ］ 4 Sep, 1994 18 March, 1958 ［Runways］ ［Runways］ 3,500 meters (1) , 4,000 meters (1) 1,828 meters (1) , 3,000 meters (1) ［ Total Landing & Departure］ ［ Total Landing & Departure ］ 108,000 slots 123,000 slots ［ Total passengers ］ ［ Total passengers ］ 13.86 million persons 12.91 million persons

Active strengthening of KIX and ITM by balance sheet reform

“New-Kansai International Airport Co. Ltd (NKIAC)”

○ Accompanying the management integration of KIX and ITM, two airports are now managed by NKIAC, which equity is totally funded by government,

○ NKIAC takes the hub airport strategy by attracting Japan’s LCCs and US’s FedEX etc.

○ NKIAC is preparing for transferring the management rights of NKIAC’s airports to the private sector through a concession agreement. Characteristic of “National airports” (1)

(3)Wakkanai

(20)Sapporo (21)Chitose (4)Kushiro (2)Shin-Chitose “National Airports” (5)Hakodate administered by the National Government (26)Misawa Each airport has its own conditions “Military Airports” ※ ※It’s open for private aviation within an extent and constraints. that doesn’t hinder the military activities ( size of airports, climate, location of airports…） (7)Niigata (6)Sendai

(8)Hiroshima (23)Komatsu (10)Matsuyama (22)Hyakuri (24)Miho (1)Haneda (13)Kitakyushu Large-scale Off-shore

(12)Fukuoka (27)Yao (16)Oita (14)Nagasaki (11)Kochi (25)Tokushima (15)Kumamoto (9)Takamatsu (18)Kagoshima (17)Miyazaki Mountainside Snow (19)Naha Characteristic of “National airports” (2)

[EBITDA] ※1The Total of MLIT’s airports balance of aeronautical business and the private sector’s balance of non-aeronautical business (2009) ・(1)Haneda ５００ ～ １００ ～ ・(2)Shin-Chitose ４０ ～

２０ (8)Hiroshima (23)Komatsu ・(18)Kagoshima (16)Oita (10)Matsuyama ・(12)Fukuoka (5)Hakodate ・ (15)Kumamoto ・・ (17)Miyazaki (7)Niigata (11)Kochi (26)Misawa (9)Takamatsu (6)Sendai ・ (25)Tokushima (20)Sapporo・ ・(19)Naha (4)Kushiro (3)Wakkanai (14)Nagasaki (13)KitaKyushu (24)Miho Each airport has its own conditions △２０ and constraints. ( size of passengers, earnings…）

△４０ (100 million yen) 2 million 10 million [Passenger] ※ EBITDA：Earnings Before Interest, Taxes, Depreciation and Amortization≒Ordinary Profit＋Interest Expense＋Depreciation 6 ※ (21)Chitose airport, (27)Yao airport and (22)Hyakuri airport are not mentioned because Chitose and Yao have no passenger and Hyakuri airport opened in March 2009. National airports’ approach for enhancement of management

Key Objective • To make airport operation more flexible, based on diverse characteristics of each airport, extracting expertise from private sectors through concession

Key Drivers • To make each airport more attractive, revitalizing local communities • To increase number of flights and visitors to each airport, expanding aviation network • To increase competitiveness and efficiency by improving non-aeronautical business

Preparing framework for concessions of the whole or a part of 27 “National Airports” Runway Terminal building by providing the airport management rights to private sectors Managed by Managed by Current government company Landing charges on 27 airports are uniform nationwide and managed in one account

Future Unite “air-side” and “land-side” operation and management Managing income & cost enables each airport to set landing charge accordingly Thank you for your attention

Ｍｉｎｉｓｔｒｙ ｏｆ Ｌａｎｄ, Ｉｎｆｒａｓｔｒｕｃｔｕｒｅ, Ｔｒａｎｓｐｏｒｔ ａｎｄ ＪＡＰＡＮＴｏｕｒｉｓｍ ＣＩＶＩＬ ＡＶＡＴＩＯＮ ＢＵＲＥＡ Ｕ

E-mail: [email protected] Tel: + 81-3-5253-8695