## ③ Encouraging the entry of LCCs

An LCC originating from Japan, Peach Aviation went into service in March 2012; Jetstar Japan Co., Ltd. followed suit in July of the same year and AirAsia Japan Co., Ltd. did so in August.

The entry of these LCCs is expected to create new demand by encouraging more foreign tourists to visit Japan than before, expanding the sphere of domestic tourism and so on. The Comprehensive Strategy for the Rebirth of Japan (approved at a Cabinet meeting on July 31, 2012) pledges to "elevate the underlying demand for aviation by stimulating new demand to expand the presence of LCCs in domestic and foreign air travelers transportation to equal the U.S. and Europe (about 20 to 30%) by 2020."

Two major measures have been taken in Japan to facilitate the entry of LCCs.

Source) MLIT

The first is to review the way technical regulations relevant to safety should be. The way technical regulations (laws, notifications and administration) relevant to aviation safety should be was reviewed with advancements in aviation technology, governing international standards, etc. taken into account from viewpoints of responding to a new form of business operation that addresses evolving in aviation technology and user needs, in line with the Ministry of Land, Infrastructure, Transport and Tourism Growth Strategy (May 2010). More specifically, responses to 100 out of 120 items of requests, such as refueling with passengers on board and skill testing by way of simulations, were decided. It is expected to add to user convenience, simplify the flow of business operation, contribute to recruiting and developing of human resources, and cut costs to, opening a way for the entry of more LCCs.

The second is the development of an LCC terminal, etc. Japan’s first LCC terminal (Second Terminal) came into service on October 28, 2012. At Narita International Airport, interim LCC reception facilities were constructed on the southern and northern sides of the existing Second Passenger Terminal, which came into service on September 12 and October 23 of the same year, respectively. In addition, the development of an LCC terminal is in progress for completion within FY2014. At Naha Airport, an interim LCC terminal built by leveraging an existing facility came into service on October 18, 2012. An LCC terminal made available for a cost lower than an existing terminal and other environmental prerequisites in place could accelerate the inauguration of LCC services.

## ④ Accelerating the reception of business aviations

A business jet is a small aircraft with the capacity to hold a few to more than a dozen passengers at the most. Business aviations are typically used by businesspersons valuing time because they are able to adjust times according to their schedules or utilize the plane as a secure space to carry on business meetings and such on board.

Business aviations have become a means of global corporate activity in the U.S. and Europe. As Japan’s economy goes on global, the need to attract investment from overseas is beginning to win wider recognition than before, instead of conducting a one-sided exchanges, such as building a plant overseas. Hence, the importance and potentials of business aviations in Japan will grow from a viewpoint of consolidating economic growths in the Asian regions from now on.

Comparisons of the status of business jet ownership by country, however, show that only 62 business aviations are registered in Japan (in 2011), against the largest owner U.S. with about 1,900 business aviations registered in the same