High costs at Japanese airports and new Tourism Tax proposal

Committee:
Airlines
status:
Some progress
Published:
Operating costs at Japanese airports continue to be high in comparison similar airports. While demand for outbound travel to Europe is strong, it is the commercial viability of flights that determines the addition of capacity. Recent negotiations with NRT held the line on prices. Added to such cost issues, the Government continues to require airlines to file published fares and surcharges for approval prior to sale – a time-consuming and costly exercise not required in other major markets.

Recommendations

  • The EBC recommends that airport fees be temporarily reduced to support short term cost reduction for airlines. This will encourage airlines to ramp-up capacity and frequencies at a faster pace. Current airport fees are too high, particularly in comparison with other airports in the region.
  • The decision by the Japanese Government to reduce specific fees at domestic airports in Japan to further encourage travel should be used as a template to lower fees at international airports.
  • The EBC urges the Government to reconsider the value to consumers of insisting that airlines file published fares and surcharges for approval prior to sale.
  • The EBC was against the implementation of the new Tourism Promotion Tax as it burdens the airlines to collect it and raises costs for the consumers. In the implementation phase, the EBC requests clarification of data requirements which may be in conflict with EU data protection laws and prohibit EU airlines from delivering it. Also needed is a transparency of usage for the collected revenue.