Japan’s transport ministry is to convene an “expert’s conference” on the country’s domestic airline sector to address issues such as “changes in demand structure”, as well as macroeconomic challenges.
The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) says the meeting will take place on 30 May in Tokyo, bringing together seven experts from academia.
The meeting takes place as the ministry warns that stability in the domestic operating environment is “becoming difficult”, due to pandemic-led demand shifts, as well as “foreign currency-dominated costs such as maintenance costs and fuel”.
“If the situation continues, it may [have a negative impact] on the domestic aviation network, which is an important means of transportation that supports the livelihood [of many] and is essential [to] regional revitalisation and attracting inbound travellers to regional areas,” the ministry adds.
The “council of experts” will discuss and propose measures for the stability and growth of the domestic aviation sector, says MLIT.
Japan’s two largest carriers Japan Airlines and All Nippon Airways saw healthy traffic and revenue growth on their domestic networks for the year to 31 March, amid measures such as “enhanced revenue management”.
Skymark Airlines, a Tokyo-based domestic carrier, reported a drop in its operating profit for the year to end-March, despite seeing a rise in passenger revenue, as it was impacted by a spike in costs exacerbated by foreign exchange losses.
