IATA Calls for a More Competitive Japan

12 April 2010 (Last Updated April 12th, 2010 18:30)

The International Air Transport Association (IATA) has called upon Japan to address cost issues related to two major airports in the country in a bid to encourage competition. IATA director general and CEO Giovanni Bisignani said the two major airports in Tokyo should take advantage of

The International Air Transport Association (IATA) has called upon Japan to address cost issues related to two major airports in the country in a bid to encourage competition.

IATA director general and CEO Giovanni Bisignani said the two major airports in Tokyo should take advantage of expanded slot capacities to better compete with Asian rivals.

"Narita and Haneda will increase capacity so there is a unique opportunity to decrease unit costs," Bisignani said.

Bisignani asked the Japanese Government to re-think the JPY2,400 per ton charge for international operations at Haneda Airport.

"Charges must follow International Civil Aviation Organization (ICAO) principles. That means transparent charges, no cross subsidisation and consultation with users," Bisignani said.

"Setting such a high charge for Haneda ignores the natural impact of added capacity to reduce unit costs, and it misses a great opportunity to drive efficiencies at both Haneda and Narita which should compete on costs and services to serve the Tokyo market."

Bisignani suggested the two airports compete for hub traffic at Hong Kong, Incheon, Shanghai and Beijing to serve the growing Chinese market.