Narita to Welcome More Business Jets

The government of Japan will launch a package of new policy to stimulate growth of economy, one of them is dealing with Narita International Airport for its deregulation and construction of exclusive facilities for smaller business jet aircraft.

The idea behind this new policy is to make it easier for global business leaders to convene conferences in Japan or for affordable people to come over here to undertake medical services, thus pushing Japan's economic boost.

Narita's new exclusive terminal for business jets will be completed by March 2013 while the current regulation of parking a business jet on its tarmac of maximum seven days to longer or abolished.

Landings of business jets at Narita totaled 2,100 and 500 at Haneda, closer to central Tokyo, both are incomparably fewer than 255,000 at six airports around New York.

Japanese Ministry of Land and Transport estimates Japan has lost as many as 4,000 flights by business jets as the country's poor infrastructure for corporate business jet incoming flights; the loss of opportunity were compensated by organizing the original conferences in other countries.

Haneda can accommodate business jets but the airport regulates prior application by seven days while parking is limited up to five days. Deregulation at Narita ahead of Haneda; as hub function at Haneda is given more priority, Narita has a fear of losing its significance as gateway to Japan as it was originally designed.

The number of business jets are on rise since 9-11 as security of business elites are of greater concern and U.S. general aviation forecasts it will grow as many as 20,000 in 2016 from 12,000 in 2006.

ANA Posts Biggest Deficit

All Nippon Airways (ANA, Tokyo Stock Exchange stock code #9202) has announced its latest consolidated financial closing with a loss of 57.3 billion yen (about 0.6 billion US dollars), surpassing 4.2 billion yen deficit at a year ago as its biggest deficit in a single year.

 The deficit should be attributed to sluggish growth of passenger revenue which came from fewer passengers by bad economy as well as new type of flu last year. Fewer business class passengers as well as intensive competition lowered average price of seat in every flight; domestic seat price was reduced by 3.3% from previous year while 30.1% drop was seen in international flights.

As for the coming year ending March 2011, ANA expects gross sales revenue of 1,360 billion yen or 10.7% higher than this year with final profit of 5 billion. ANA counts on recovery of traffic demand and more revenue as expansion of its slots at Tokyo's two international airports at Haneda and Narita.

Its rival Japan Airlines will withdraw from 45 air routes in this year in both domestic and international market. ANA does not think it will benefit from JAL restructuring. Volcanic effect of Iceland in April is believed to lower ANA passenger revenue by 1 billion yen and 0.5 billion yen in profit.