Nagoya Chubu Centrair International airport is evaluating whether to build a new terminal that would likely cater to the growth in low-cost traffic.

In 2013 the airport cancelled plans to build a dedicated low-cost terminal, after AirAsia and All Nippon Airways dissolved their Japanese joint venture. AirAsia is however in the process of relaunching AirAsia Japan, and has announced Nagoya as its base.

Speaking to Flightglobal at Routes Asia in Manila, the airport’s head of route development Takashi Hashimoto says he expects a decision to be made within the year, on whether to build a new terminal, and if it will be a dedicated low-cost facility. Should it decide to proceed, it would take approximately three years for the terminal to be operational, he says.

Last year, the airport handled 10 million passengers, with low-cost carriers accounting for about 20% of total traffic. China’s Spring Airlines, for one, is operating 24 flights a week to Nagoya.

The airport’s currently capacity stands at 17 million per annum, and the target is for traffic to hit 15 million by 2020.

Going forward, the airport is also targeting more growth of international traffic, especially on long-haul routes to the US and Oceania.

“Nagoya is a base for many global companies so we are seeing high-yield corporate traffic. Our challenge however, is that we need to improve the awareness of Nagoya as a tourist destination and bring in more tourism,” says Hashimoto.

Source: Cirium Dashboard