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Budget carriers gives a new impulse for competition at Osaka Kansai airport

Following the decision of Kansai Airport’s authorities to lower passengers taxes for passengers flying out of its new budget terminal, more airlines are expected to move into the new facility which would stimulate a declining traffic at the airport.

OSAKA – Once upon the time, Kansai international airport, Japan’s second largest international gateway after Tokyo- was predicted a bright future. The new airport built by world acclaimed architect Renzo Piano on an artificial island at large of Osaka Bay and opened in 1995 with much fanfare was seen as the alternative to a crowded Tokyo Narita airport, plagued then by physical –and political- constraints. In 2000, Kansai reached a record of over 20 million passengers a year, including close to 13 million international passengers. Last year, Kansai received again 13.5 million passengers. However, this was the cumulated figure for domestic and international traffic. In just a decade time, the pride of Western Japan has lost close to 35% of its passengers output. International traffic at Kansai was last year below 10 million.

The announcement last year of the establishment of Peach, a home-base low cost carrier, a subsidiary of All Nippon Airways, as well as the construction of a budget terminal is likely to turn around the airport’s fortune. With the new budget terminal due for opening next October, Kansai International Airport will slash its facility usage fees — the highest in Japan – by around 40 % to ¥1,500 (US$ 19) for international passengers who fly out of the new facility. Current departure tax for international passengers stands at ¥2,650 (US$ 34).

The airport’s operator, New Kansai International Airport Co., also looks at expanding the terminal because it is already occupied mostly by Peach Aviation Ltd., which is based there. It might be necessary as Jetstar Japan Co. just announced to move into Osaka and use Kansai as its second base from October. The low-cost-carrier indicated  recruiting pilots, cabin attendants and aircraft maintenance engineers for its Kansai-based operations, according to the Japan Times.

A subsidiary of Japan Airlines and Qantas, Jetstar announced will inaugurate also its first flight between Kansai and Naha, Okinawa on October 28, 2012. It already fly from Kansai to Tokyo Narita, Sapporo Chitose and Fukuoka. The airline indicated to also plan international flights services in 2013.

The airline will operate up to ten round-trip services on four different routes by December 2012, according to Miyuki Suzuki, Jetstar Japan President. Ms Suzuki also informed Kansai Airport president, Keiichi Ando, of the need to develop more low-cost carrier facilities at the Osaka airport.

Competitor Peach Aviation opened recently flights to Seoul and Hong Kong. It will commence in September flights to Taipei. The airline already serves out of Kansai domestic routes to Fukuoka, Sapporo Chitose, Kagoshima and Nagasaki. Flights to Okinawa will also start on October 18.

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Luc Citrinot a French national is a freelance journalist and consultant in tourism and air transport with over 20 years experience. Based in Paris and Bangkok, he works for various travel and air transport trade publications in Europe and Asia.

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