ATAG Opposes Cross-Subsidization Plans for Japan's Airports

30 July 2002

The Air Transport Action Group (ATAG) expressed its opposition to the Japanese government's plans for privatizing Japan's three major airports and urged reduced charges to keep Japan's airports competitive.

Speaking at a conference in Tokyo ATAG Director Martina Priebe said that "only a user-driven approach to privatization will permit the development of an appropriate infrastructure and keep charges at levels which are acceptable. Privatization must not be an excuse to bail-out troubled airports at the expense of consumers and the airlines."

The Japanese Government is considering a privatization plan that would create three private companies to operate terminal buildings at Narita, Nagoya and Kansai while consolidating the land development function in a single public corporation. "Such a plan would see airlines landing at Narita, subsidizing facilities they are not using at other airports. This is clearly against internationally agreed principles and absolutely not acceptable," noted Priebe.

 As the Japanese Government is considering its 8th Five Year Airport Plan, ATAG urged that better demand forecasting practices be implemented. Failure to revise demand forecasts based on actual developments during the implementation stage of the planning has led to over-building of infrastructure in many areas.

"Previous airport development plans have run into severe cost and efficiency problems simply because they failed to estimate and adapt to changing market requirements." 

ATAG is a not-for-profit organization promoting the sustainable and efficient development of airport infrastructure. Its membership broadly represents all parts of aviation with funding mainly from the International Air Transport Association (IATA), Airbus, Boeing, CFM and Rolls Royce.