Airlines

While COVID and its effects have subsided, the airline industry continues to face challenges. This is true not only in Japan, but also globally. During the COVID, flights to and from Japan were more than halved. Today, we are seeing inbound traffic that is more or less back to pre-COVID figures. Unfortunately, the outbound traffic from Japan to Europe is still only 65% of what it was pre-COVID 2019.  The drop in international travel among especially older Japanese travellers is significant. To fewer illustrate the drop I outbound traffic, 30% of Japanese citizens held a passport in 2019. Today that figure is only 20%. It is difficult to say whether this will be the new norm, or whether the situation will revert to what it was five years ago.

Airport fees, particularly in Tokyo continue to be high in comparison to regional competitors in Asia which is also an issue when airlines evaluate expansion. Higher fees were recently introduced for Haneda airport (HND. The recent agreement concluded between IATA (International Air Transport Association) and Narita Airport (NRT) is satisfactory in that fees remain status quo, but there continues to be unusual charges such as a parking fee structure which does not conform to international norms. The EBC recommends refraining from any increase in airport related fees. In addition, the cost of the continued improvement of security needs to continue to be borne by airport operators and government.

On a more positive note, the EBC recognises and appreciated that MLIT (Ministry of Land, Infrastructure, Transport and Tourism) and Ministry of Justice have implemented to facilitate the increased passenger traffic to Japan. With allocated slots to European airlines through better access to HND, and through increases passport control officials at the airports. We also appreciate the engaging approach by the Narita Airport officials who are listening to and working closely with the airline industry. The EBC hopes that this can serve as a blueprint for all airports.

European airlines have taken numerous measures to lessen their impact on the environment, including the purchase of new fuel- and noise-efficient aircraft, more efficient navigation technology, and bio-fuel testing. It follows that the EBC fully supports the opening of new approach and departure patterns at HND in order to reduce fuel consumption and increase cost efficiency. In line with this, the EBC recommends abolishing the early “gear down” policy at NRT, which unnecessarily increases not only fuel usage, but also noise for local residents.

To support the transition to a more sustainable aviation sector, both airlines and governments are introducing and promoting the use of Sustainable Aviation Fuel (SAF). Achieving carbon neutrality will require an estimated 450 million kilolitres of SAF, yet only 300,000 kilolitres were utilised in 2022. A major obstacle to achieving this target is the limited supply of SAF. The EBC believes the Japanese government must take a more proactive approach by presenting a comprehensive roadmap that addresses supply chain challenges and outlines how these targets will be met.

Key issues and recommendations

 

Chairman

Mr. Lawrence Ryan
Senior Director, Sales Japan & Korea
Lufthansa Group Airlines
3-1-13 Shibakoen
Minato-ku, Tokyo 105-0011
Tel: +81-3-5402-5201

Upcoming committee meeting schedule

Please contact the EBC ( ebc@ebc-jp.com ) to confirm the meeting location prior to attending

DATETIMELOCATION
2025