Four Corners
Our high-flying columnists come from the four corners of the globe. In Japan we look back in time, India is concerned with a challenging present and Australia ponders the future
JAPAN History of the Narita Airport 3 Tim Zandbergen
manager sales and marketing TFK Corporation
“The Japanese
authorities limit the number of flights
airlines can operate, making the airport
expensive for airlines and passengers”
iNDiA Challenging times for full service carriers Zafar Siamwala
chief operating officer Oberoi Flight Services
Doha, India and Mauritius “Low cost carriers’
growth in India has tapped 60% of total domestic travel,
proving to be more robust and easier to sustain in downturns”
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www.onboardhospitality.com
India is the ninth largest aviation market in the world, driven by a boom in tourism and increasing levels of disposable income. Government support and private participation, coupled with the availability of skilled manpower and a favourable business environment positions India as an attractive investment destination. The latest IATA report shows
India’s domestic aviation market has tripled in five years and is expected to show more than 16% compound annual growth 2010-2013. Low cost carriers’ growth in India
has nearly tapped 60% of total domestic travel, proving to be easier to sustain than full-service carriers during downturns, even coupled
with volatile fuel costs. For the first time, domestic traffic
in a month has registered 5.5 million passengers carried, with all three airlines, Jet Airways, Kingfisher Airlines and IndiGo, carrying more than one million passengers each this May. Domestic capacity is also projected to grow by 12-14%. Market share statistics for May indicate Kingfisher and IndiGo are neck-to-neck, with 20 and 19.9% of market share respectively. Jet Airways leads with 26.1%. The remaining market shares belong to Air India (13.2%) Spice Jet (14.2%) and Go Air (6.6%). The recent orders placed by IndiGo for 180 Airbus 320 aircraft means India is the fastest growing
commercial aviation market in the world, with the largest ever commitment for new Airbus equipment. The airline has completed its five years of trading necessary to secure an international license and plans to become one of India’s top operators in the international market. The first stage of its international expansion will be links between Bangkok, Dubai and Singapore, from September. With a one type fleet of Airbus
320 models, the carrier will be able to keep its cost structure low and compete strongly on price. Its international growth will be
targeted on South East Asia and the Middle East, the regions holding the largest traffic share from India.
In addition to its rolling countryside, Narita is distinguished for two things, its 1300-year-old Buddhist temple and its international airport. The airport was finally opened on May 20, 1978 but instead of the five runways originally envisioned it had only one runway, until a second shorter runway of 2,180 metres (now extended to 2,500 metres) was opened in 2002, in time for the World Cup. The fact that only one runway was used for 14 years at one of the world’s busiest international airports is truly astonishing, given the volume of flights and numbers of passengers. A third cross runway (and a bullet train line) has been put on hold indefinitely due to continued land ownership issues
and required negotiations with surrounding municipalities. There are many negative connotations connected with Narita Airport. It has been criticised, from it inception, for its distance from central Tokyo and points further west of Tokyo such as Yokohama. Arguments over slots and landing fees have plagued it and as so many airlines want to use it, the Japanese aviation authorities continue to limit the number of flights each airline can operate, which makes using the airport expensive for both airlines and passengers. Most recently, Narita Airport has
faced strong competition, not only from the re-opening of international routes from Haneda, but by well-
planned regional hubs such as Incheon and Hong Kong. Nevertheless, there are many
reasons that indicate Narita is unlikely to lose its position as Japan’s #1 airport. The demand in the Tokyo area is enormous and Narita is the perfect transit point to other Asian destinations for transpacific flights. Narita itself continues to expand both its slot capacity and infrastructure and is looking at diversifying by becoming a terminal for LCCs and business jet traffic. Lastly, with so much capital and energy invested into the airport, it is highly unlikely for the foreseeable future that any Japanese government will diminish in any way its use and central role.
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