SESSION 5: Physical and Environmental Constraints Capacity Constraints in Japan and their implications for Liberalization MORISHIGE Toshiya Director, International Air Transport Division Civil Aviation Bureau, Japan Seminar “Aviation in Transition: Challenge & Opportunities of Liberalization

Introduction Capacity Constraints Removal of Constraints Types, major reasons and influence. Removal of Constraints Mitigation of Constraint defects Constraints and Liberalization Seminar “Aviation in Transition: Challenge & Opportunities of Liberalization

Environmental Constraints Airport Constraints Physical Constraints Airspace Constraints Capacity Constraints Environmental Constraints Seminar “Aviation in Transition: Challenge & Opportunities of Liberalization

Physical Constraints(1) Airport Runways Number of Runways Physical Conditions (Length, Taxiways, etc.) Parking Spots Terminal Buildings Cargo Facilities Seminar “Aviation in Transition: Challenge & Opportunities of Liberalization

Narita Airport 11 Residence of Landowner Runway B 2180m Passenger Terminal 2 Original plan 2500m Cargo facilities Runway A 4000m Passenger Terminal 1 Seminar “Aviation in Transition: Challenge & Opportunities of Liberalization 11

Physical Constraints(2) Airspace Airspace near airport Complexity of airspace Neighboring airports Enroute airspace Environmental requirements Oceanic or remote airspace Lack of effective C/N/S performance Seminar “Aviation in Transition: Challenge & Opportunities of Liberalization

Complex Airspace Narita Airport Haneda Airport Seminar “Aviation in Transition: Challenge & Opportunities of Liberalization

Environmental Constraints Noise Type of aircraft Number of operations Operation procedures (Noise Abatement) Emission TV interference Neighboring residential perception Seminar “Aviation in Transition: Challenge & Opportunities of Liberalization

Example at Narita airport Provisional second runway opened (April 2002) TO/LD capability increased 1.4 times. Services by 11 new entrants including services from 5 new countries Almost fully utilized after 9 months. Expansion of Frequencies and Network has been limited. Seminar “Aviation in Transition: Challenge & Opportunities of Liberalization

Removal of Constraints (1) Physical constraints - Airport Improvements of airport facilities Runway / Terminal Bldg / Cargo area New airport constructions Kansai / Central Japan (2005/03) etc. Seminar “Aviation in Transition: Challenge & Opportunities of Liberalization

Image of Central Japan (Chubu) International Airport Runway (3,500m） Access Road Access Railway Passenger Terminal Building Kansai International Airport (Phase 2) Kansai International Airport Master Plan (conceptual drawing) Airport island of the 1st Phase Runway B (4,000m） Runway A（3,500m) Annex to the Passenger Terminal Building Satellite Passenger Terminal Building（phase 1） Access Taxiway Access Bridge Railway Station Airport island of the 2nd Phase Image of Central Japan (Chubu) International Airport Seminar “Aviation in Transition: Challenge & Opportunities of Liberalization 5

Removal of Constraints (2) Physical Constraint - Airspace Restructuring of airspace Multi-airport approach controls Coordination between operations Air Space Management (Civil / Military) New Air Navigation Facilities Satellite based technology Seminar “Aviation in Transition: Challenge & Opportunities of Liberalization

Removal of Constraints (3) Environmental constraints Source Noise / Emission Certificate Noise abatement procedures / Curfew Airport facilities Noise insulation belt / Air Navigation facilities Surrounding area Noise proofing of houses Seminar “Aviation in Transition: Challenge & Opportunities of Liberalization

Introduction of Satellite based Technology Current System After the introduction of the satellite ＭＴＳＡＴ ＧＰＳ ＨＦ communication 50～100 NM 30 NM maximum 10 minutes or 15 minutes 80 NM or 120 NM 4 minutes 30NM（initially 50 NM） Seminar “Aviation in Transition: Challenge & Opportunities of Liberalization

Mitigation of Constraint Defects Objectives accommodate traffic demand ensure adequate market access ensure transparency Slots Management Utilization of less congested airports Air Traffic Management Seminar “Aviation in Transition: Challenge & Opportunities of Liberalization

Constraints and Liberalization Characteristics of Air Transport Scale economy Tendency of oligopoly or monopoly Irreversibility of Business Less effectiveness of ex-post solutions Services under constraints Excessive advantage of carriers with vested rights Fair competitive environment is crucial. Seminar “Aviation in Transition: Challenge & Opportunities of Liberalization

Present framework unfettered ordered & gradual Scale economy Physical constraints Vested rights Irreversibility Toward Liberalization unfettered ordered & gradual oligopoly or monopoly loss of services & network flexibility to the market adequate participation balanced development of network Seminar “Aviation in Transition: Challenge & Opportunities of Liberalization

Conclusion Variety of Constraints Unfettered rapid Liberalization – 　Expanding wide variety of network and Consumer Interests hindered With Constraints, Ordered and Gradual Liberalization needed Seminar “Aviation in Transition: Challenge & Opportunities of Liberalization