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“Level Playing Field” in Asia/Pacific

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“Level Playing Field” in Asia/Pacific MLIT “Level Playing Field” in Asia/Pacific 16 July 2009 Yoshiro TAGUCHI Dep. Director for International Air Transport Div. Civil Aviation Bureau of Japan Ministry of Land, Infrastructure, Transport and Tourism Performance and Forecast of Air Passenger Traffic (Worldwide) MLIT Europe - North America 57.35 Within Europe (＋3.5%) 309.85（+4.4%） International 167.31 Within North America Domestic 142.54 Within Asia 336.38（+3.0%） Europe – International 9.3 Other Regions 356.26 Domestic 327.08 145.04 Europe - Asia （+5.3%） International 95.48 North America – 36.4 Domestic 260.78 Europe – Middle East (＋6.5%) Asia – Other regions Other Regions 19.7 104.22 128.91 (＋6.5%) Within Asia - North America Middle East Middle East - Asia 32.94 22.69 27.97 （＋6.3 %） (＋8.1%) (＋3.7%) North – South Americas International 13.28 Domestic 19.65 10.32 (＋4.2%) ＋ Within South Middle East – Other Regions America 50.32 47.17 Notes （＋5.1 %） Number of international and domestic International 10.11 passengers within the region (2007, in Domestic 37.06 ○○ million) Forecast of International passengers Number of international passengers South America – Other Regions （○○%） within the region (from 2008 to 2012) between regions (2007) 18.46 Ministry of Land, Infrastructure, Transport and Tourism Source： IATA World Air Transport Statistics 52nd Edition （2008.6） IATA Passenger Forecast 2008-2012 （2008.10） P.1 Performance and Forecast of Air Passenger Traffic (Japan) MLIT 5.37 (＋2.6%) 6.06 Europe Korea (＋1.6%) 9.31 Japan United States China (＋4.1%) 153（＋2.1％） International 58.31（＋3.7％） (mainland) Domestic 94.85（＋1.0％） 5 7.83 (＋2.4%) (＋7.0%) India 0.18 United States （＋12.7%） 8.11 1.75 (Hawaii, Guam, Saipan) ASEAN (＋3.3%) (＋2.6%) Oceania Notes Number of international and domestic passengers using airports in Japan (2007, ○○ in million) Forecast of international and domestic Number of International passengers to/from Japan （○○%） passengers using airports in Japan (2007) (from 2008 to 2012) Ministry of Land, Infrastructure, Transport and Tourism Source： IATA Passenger Forecast 2008-2012 （2008.10） P.2 Performance and Forecast of Air Cargo Traffic (Worldwide) MLIT Europe - North America Within Europe 3.11 2.02（+3.8%） （to Europe ＋3.5% from Europe ＋3.4%） International 1.74 ＋ ） Within North America Domestic 0.28 Europe – 6.62（+4.2%） Europe - Asia International 0.22 Other Regions Domestic 6.39 9.35 3.93 North America – Other Regions (to Asia ＋5.1% Within Asia Europe – Middle East from Asia ＋5.3%) 11.03（+5.2%） 7.85 1.14 International 5.8 (to Middle East ＋4.9% Domestic 5.23 from middle East ＋4.6%) Asia – Other Regions North – South Americas Within Middle East 9.42 0.45 0.51（+3.9%） Middle East - Asia (to South ＋3.4% International 0.42 Asia - North America from South ＋3.9%) Domestic 0.09 0.92 (to Asia +6.2% Middle East – Other Regions from Asia +6.2%) 3.95 Within (to Asia ＋3.8% 2.34 from Asia ＋3.3%) South America 0.31（＋5.1 %） International 0.13 Note Domestic 0.18 Volume of international and domestic cargo within the region (2007, in million South America – Other Regions ton) ○○ 0.81 Forecast of international cargo Volume of International cargo between regions (2007) （○○%） within the region (from 2008 to 2012) Source：IATA World Air Transport Statistics 52nd Edition (2008.6) Ministry of Land, Infrastructure, Transport and Tourism ＩATA Freight Forecast 2008-2012 (2008.10) P.3 Performance and Forecast of Air Cargo Traffic (Japan) MLIT 0.46 (＋2.3%) 0.74 Europe (＋1.6%) Korea 0.41 (＋3.8%) Japan United States 4.11 (mainland) China （+3.4%） 0.57 International 3.15（＋3.7％） Domestic 0.95 （＋2.2%） (＋8.7%) India 0.009 0.55 (＋1.8%) ASEAN Note Volume of international and domestic cargo using airports in Japan (2007, in ○○ million ton) Forecast of international and domestic Volume of International cargo to/from Japan (2007) （○○%） cargo using airports in Japan (from 2008 to 2012) Ministry of Land, Infrastructure, Transport and Tourism Source：IATA Freight Forecast 2008-2012 （2008.10) P.4 Trend of International Air Transport In Asia/Pacific Region MLIT Background - In Asia/Pacific Region, establishment of - Alliances and business mergers among full economic integration such as European airlines are getting formed across borders. Union takes immeasurable time and cost. - Thus, at first, we should facilitate movement - Low-Cost carriers are expanding their of people, goods and information by active business scale remarkably. air transport. Action Needed by Each Government 1. Promotion of aviation liberalization through bilateral air talks = Relaxation of restrictions on points of services, routes and the number of flights 2. Expansion of congested airport capacity 3. Improvement of ATM and implementation of safety, security and environmental standards + 4. Ensuring “Level Playing Field” among airline companies: a) Technical support for capacity building of developing countries; b) Harmonization of policy/standards/ATM; and c) Strengthened representation of the regional interest at ICAO forum Ministry of Land, Infrastructure, Transport and Tourism P.5 Trend of Asian LCCs and Industry Reorganization MLIT Remarkable Progress of Asian LCC Airline Industry Reorganization 1. Operations to/from Japan 1. M & A (1) Delta (DL) – Northwest (NW) Merger (1) Jetstar Airways (Australia) (2) Viva Macau (Macau) (2) Lufthansa (LH) Equity Acquisition of (3) Cebu Pacific (the Philippines) - Swiss International Air Lines (4) Hong Kong Express (Hong Kong) - JetBlue (5) Jeju Air (Korea) - Brussels Airlines -BMI - Austrian Airlines 2. Plan to Start Operations to/from Japan (3) British Airways (BA) talks with (1) Air Asia X (Malaysia) -Iberia (2) Air Busan (Korea) - Qantas Airways (3) Jin Air (Korea) (4) Easter Jet (Korea) (4) Air France (AF) – KLM Merger and Equity Acquisition of -Alitalia 3. Other Major Low Cost Carriers 2. ATI (Antitrust Immunity) (1) Delta(DL) – Air France KLM (1) Air Asia (Malaysia) (2) Tiger Airways (Singapore) (2) American – British Airways (3) United – Continental - Lufthanza Ministry of Land, Infrastructure, Transport and Tourism Source: The website of each company, and aviation industry magazines, etc. P.6 Trend of Alliance among Airlines MLIT Star Alliance Oneworld *( ) scheduled to join ・ Lufthansa (Germany) *( ) scheduled to join ・ Scandinavian Airlines (Sweden) ・ United Airlines (United States) ・ bmi (United Kingdom) ・ Air Canada (Canada) ・ British Airways (United Kingdom) ・ Finnair (Finland) ・ American Airlines (United ・ Spanair (Spain) ・ US Airways (United States) States) ・ Austrian Airlines (Austria) (・Continental Airlines (United ・ Iberia Airlines (Spain) States)) ・ LOT Polish Airlines (Poland) ・ Malev Hungarian Airlines ・ Japan Airlines ・ TAP Portugal (Portugal) ・ All Nippon Airways (Japan) ・ Swiss International Air Lines ・ Asiana Airlines (Korea) ・ Cathay Pacific Airways (Hong Kong) (・ Mexicana Airlines (Mexico)) (・Brussels Airlines (Belgium)) ・ Air China (China)(・TAM Airlines ・ Royal Jordanian Airlines (Brazil)) ・ LanChile Airlines (Chile) ・ Shanghai Airlines (China) ・ Turkish Airlines ・ Singapore Airlines (Singapore) ・ Egypt Air ・ Thai Airways International (Thailand) ・ South African Airways (・Air India (India) ) ・ Qantas Airways (Australia) ・ Air New Zealand 25 carriers 11 carriers (New Zealand) (including carriers scheduled to join) (including carriers scheduled to join) SkyTeam Share of transportation volume held by each alliance (based on passenger-kilos of international routes in 2007) ・ Air France (France) ・ Delta Air Lines (United States) ・ KLM Royal Dutch Airlines (The Netherlands) ・ Alitalia (Italy) ・ Northwest Airlines (United States) ・ Czech Airlines (Czech) St ar ・ Continental Airlines (United States) Others ・ Aeroflot (Russia) Aliance 31% ・ Korean Air Lines (Korea) (transfer to Star Alliance planned) 28% ・ China Southern Airlines Aeromexico (Mexico) Sky Team One World Associate member 21% (implementation of mutual FFP, though without voting right) 20% ・Air Europe (Spain) 11 carriers (+three carriers) ・Copa Airlines (Panama) ・Kenya Airways (It was 10 carriers after Continental Airlines left) * As of November 2008 for member carriers * Source of share of transportation volume data: IATA World Air Transport Statistics 2007 Ministry of Land, Infrastructure, Transport and Tourism P.7 Progress of Aviation Liberalization in Asia/Pacific Region MLIT Asia/Pacific Countries/regions that agreed on the Open Skies with the U.S. Laos, Maldives, India, Indonesia, Sri Lanka, Pakistan, Korea, Malaysia, Brunei, Singapore, Australia, New Zealand Etc… ASEAN’s Multilateral Approach to the Regional Aviation Liberalization -On November 6, 2008, Transport Ministers of ASEAN countries agreed on two important documents: a) “Multilateral Agreement on the Full Liberalization of Air Freight Services” b) “ASEAN Multilateral Agreement on Air Services” --- Aiming liberalization of the third, fourth, and fifth passenger traffic rights among capitals of the member states by the end of the year 2010. -Their ultimate goal is full integration of the aviation market of the region by the end of year 2015. Ministry of Land, Infrastructure, Transport and Tourism P.8 Promotion of “Asian Gateway Initiative” of Japan MLIT Liberalization of Air Services with Asian Countries ● Japan is now promoting air services liberalization based on “Asian Gateway Initiative”, adopted in May 2007 to relax restrictions on points and capacity between Japan and the other country, with the exception of those to/from the airports in Tokyo metropolitan area. Japan has agreed on such liberalization with the following 8 countries/regions.countries/regions
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