subcommittee came up with a report in July 2014, which pledges to take these approaches.

Approaches to resolving a short-term undersupply of pilots will include using Self-Defense Force pilots or foreign pilots or hiring active pilots under enhanced health management, etc. to secure pilots ready for work.

Solutions to address a middle- or long-term under-supply of pilots will include fostering pilots efficiently at airlines, expanding the supply capacities of private training institutes, such as private colleges and making more resort to the Civil Aviation College to expand the supply of young pilots.

Furthermore, the Aircraft Pilot Training Liaison Conference launched in August 2014 to promote collaboration among stakeholders concerned, including airlines and training institutes, and probe and resolve the various challenges of training and securing pilots, etc.

## (2) Enhancement and optimization of airport operations

### a. Driving airport management reforms

Using the “Act on Operation of National Airports Utilizing Skills of the Private Sector (Private Utilizing Airport Operation Act), the MLIT is committed to driving airport management reforms at national airports and the like to suit specific local conditions through utilization of private-sector capabilities, integrated management of airline and non-airline businesses and so on in order to expand the amount of population who are engaging in domestic and international interactions, etc. on the support of the airports and thus to encourage regional revitalization. In the meantime, procedures are underway at Sendai Airport for publicly seeking and selecting the Operating Right Holder with a view to commencing the Airport Operating Business by the holder within FY2015.

### b. Encouraging LCC entry

An LCC originating from Japan went into service in March 2012. As of March 2015, Peach Aviation operated 12 domestic routes and seven international routes, JetStar, 19 domestic routes and one international route, Vanilla Air, three domestic routes and four international routes and Spring Airlines, three domestic routes as of March 2015.

The accelerating entry of LCCs could create new demand for aviation by attracting more tourists visiting Japan, expanding domestic tourism and so on. Government-set goals dictate that “domestic LCC passengers account for 14% of the total number of airline passengers in 2020, with international LCC passengers accounting for 17%.” Various measures have been taken by Japan and at the individual airports to encourage the entry of LCCs.

Two principal governmental measures being implemented or explored are summarized below. The first measure is the lowering of the landing fees during FY2013 with regard to mainly used equipment (up to 100 tons) aimed at revitalizing local communities by maintaining local routes and supporting LCCs, and FY2014 as well.

The second is the promotion of airport management reforms. Many of Japan’s airports are managed by the central and local governments, contemplating the keep their runways and airport buildings under integrated management and launching strategic airfare plans and sales campaigns in conjunction with private businesses in a bid to attract LCCs. In addition to these measures, each individual airport has also taken two key steps to create an environment for hosting LCCs. One is the construction of LCC terminals. FY2012 witnessed the launch of an interim LCC receiving facility at Narita International Airport, Japan’s first LCC terminal (T2) at Kansai International Airport and an interim LCC terminal leveraging existing facilities at Naha Airport. Terminal 3 (LCC terminal) at Narita International Airport is scheduled to