OAMag-V7N4-Cover [Converted] - Orient Aviation

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Beijing Capital International Airport: will raise charges for domestic airlines to offset theheavy cost of its recent faceliftat other airports.He said a number of major airline customershad already lodged serious concerns with theACCC regarding SACL’s “lack of accountability,responsiveness and operational management”.Adding to the irritation of airlines is thatwhen the government privatised the country’sother major airports – Sydney is the onlyone remaining under state ownership – itintroduced a formula for aeronautical chargesdesigned to ensure fees were reduced.“It is incredible then that the only remaininggovernment-owned airport, Sydney, shouldexpect airlines to accept an increase in overallaeronautical charges,” said Mr Bennett.In 1998-99, Sydney Airport had a throughputof 21.8 million passengers (7.4 millionof them international, 13.1 million domesticand 1.3 million regional), with 281,300 aircraftmovements. More than 43 international and 13domestic and regional carriers operate throughthe facility.Forecasts suggest it will experience a 7.5%increase in international services during thefive-month period of the current schedule season,from November 1999 to March this year.Meanwhile, the International Air TransportAssociation (IATA) has said it is studying theproposed high percentage increase at SydneyAirport. “From a prima facie examination theproposal will be aggressively challenged bythe IATA Australia Task Force Group,” said anIATA spokesman.“More detailed information will be soughtfrom the SACL. Once the necessary informationhas been made available meaningful discussionswith SACL can then start. Depending onthe outcome of the discussions, further actioncould be taken.”February 2000 | Orient Aviation | 45
a i r p o r t sOver 100 flights a week to Japan’s airports withdrawn in last yearHigh costs taketheir toll in JapanBy Barry GrindrodPressure is mounting on the JapaneseGovernment from international andlocal airlines to slash its sky high aviationcharges “as a matter of priority”.Recently Finnair withdrew its servicesfrom Kansai, bringing the number of flightscancelled by international carriers at all Japan’sairports in the last year to more than100 a week.The 45-member Foreign Airlines Associationof Japan (FAAJ), which represents 56.2%of all international flights from Japan, hascalled for a 50% cut in charges. Collectivelythey are by far the most expensive in theworld.They include landing fees, navigationcharges, airport terminal rents, airportterminal common user charges and cargohandling fees.Japan Airlines (JAL), All Nippon Airways(ANA) and Japan Air System (JAS) are standingshoulder to shoulder with the FAAJ and arejointly petitioning the government to demandlower fees.A fuel tax of 26,000 yen (US$247) for every1,000 litres uplifted, levied specifically on thelocal carriers and totaling 100 billion yen a yearfor JAL, ANA and JAS, is an added “crippling”burden, according to a JAL spokesperson. TheU.S. is the only other country to impose such atax, but it is 17 times lower than Japan.Local carriers have also called for a reductionin the aircraft property tax.“The Japanese carriers have not changedor deviated from their mission of askinggovernment to reduce charges. We are at itevery day. Our president, Mr Isao Kaneko,is constantly referring to it in interviews,”he said.An added frustration for the industry,said sources, is that aviation issues are left tothe bureaucrats and little is done. “Politically,transportation, in the air or on the ground, isBritish Airways: pulled out of Osaka after 30 years.not seen as important,” said one source.Last year the FAAJ published a positionpaper which it called “a plea for help”.“In the past, although airlines complainedvigorously, the high charges could becovered by the generally higher market faresobtainable in Japan,” said the paper.“Until the opening of Kansai airport, therewere insufficient landing slots available nearthe main population centres of Japan. Anduntil recently, Japan’s Ministry of Transport(MoT) took steps to limit deviations from thefares approved and published by the JapanCivil Aviation Bureau (JCAB). That policy haschanged. The earlier attempts to influence themarket have ceased.“The airline community is happy to accepta free market for passenger tickets andairfreight prices in Japan, in common withmost other countries, (but) in the changedenvironment airlines find it increasingly difficultto pay the enormous cost of operatingto Japan.“The consequence of the high costs andchanged environment is plain for all to see.Formerly airlines were queuing up to be allowedto fly to Japanese airports. Landingslots were in short supply and rationed. Thisis no longer true.“In the last year, every internationalairport in Japan, including Narita, has hadservices withdrawn and cancelled. At least10 airlines have withdrawn completely fromKansai airport since it opened (in 1994).“Many airlines are wondering how longthey can afford to continue operating theremaining services.”Said the source: “Airlines are paying threetimes the global average in charges at Kansaiand Narita. Why? Because the MoT is stilllooking at it from an old-fashioned point ofview; that the airlines should pay. Airports arenot perceived as an economic engine for theeconomy as they are in other countries.”The FAAJ’s position paper said ticket pricesin Japan for some international destinationsare as low as 20,000 yen (US$195) for a roundtrip. This meant it would take 70 passengersto cover the landing fees and navigationcharges.The FAAJ’s position paper said becauseJapan’s charges were so much higher thanother countries, radical new approaches werenecessary to redress the problem.It was critical of practices and decisionsthat have burdened airlines with unnecessary46 | Orient Aviation | February 2000
Page 1 and 2: VOL. 7 NO. 4 FEBRUARY 2000MAGAZINE
Page 3 and 4: P U B L I S H E R ’ S L E T T E R
Page 5 and 6: N E W SRegional round-upMAS winging
Page 7 and 8: N E W Scarriers you can kiss your n
Page 9 and 10: and huge war chest, could be a new
Page 11 and 12: m a i n s t o r yBattlefield Austra
Page 13 and 14: e x e c u t i v e i n t e r v i e w
Page 15 and 16: A s i a n A e r o s p a c eAA 2000
Page 17 and 18: visits for DC-10, MD-11, A310 and A
Page 19: a i r p o r t smay be hit with fee
Page 23 and 24: a i r p o r t swould continue to ca
Page 25 and 26: g e n e r a l a v i a t i o nContam
Page 27 and 28: f e a t u r e25 years after the fal
Page 29 and 30: pick me up. I was never interviewed
Page 31 and 32: n e w sJapan Express: JAL is doubli
Page 33 and 34: s p e c i a l r e p o r tThe two ai
Page 35 and 36: the rest of its global business, th
Page 37 and 38: s p e c i a l r e p o r tImproved y
Page 39 and 40: - Qantas Airways, Cathay Pacific Ai

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