b. Approaches to consolidating the international competitiveness of the shipbuilding industry

To consolidate the international competitiveness of Japan’s shipbuilding industry and allow Japan to stay a first-class shipbuilding nation, the implementation of a policy package focusing on boosting Japan’s order-taking capacities and deployment into new markets and new segments of business, and assurance and cultivation of human resources, need to be propelled.

Starting from FY2013, support has been extended to shipbuilders, shipping operators and the like in their efforts to develop next-generation marine environment technologies that help enhance fuel efficiencies for their vessels with a view to reinforce Japan’s order-taking capacities. The Ministry is committed to realizing a desirable framework of international collaboration under cooperation between the public and private sectors and exploring, and promoting the diffusion of, energy-saving technologies for ships, natural gas-fueled ships and so on.

Approaches to the promising growth fields of marine resources development, renewable marine energy sources deployment and so on and to establishing a system of marine transportation on new routes of energy transportation will also be impelled. Specifically, the MLIT will seek to expand the horizons of business chances in the marine development field, as by supporting involvement in marine resources development projects taking advantage of Japan's strengths, supporting the development of marine resources-related technologies and promoting the training marine development engineers and, at the same time, consolidate the international competitiveness of the marine industries. In addition, the MLIT works on the formulation of safety and environmental guidelines for promoting the diffusion of floating marine energy power generation facilities. As for the availability of human resources in the shipbuilding industry, the utilization of foreign human resources ready for work will be pursued as an emergency and temporary response (scheduled for expiry in FY2020) while adhering to the key principle of seeking human resources from within Japan. Furthermore, specific measures have been explored in an integrated industry-academimic-government effort to develop domestic human resources to back up management.

The Ministry has also embarked on deals to combat fake ship machinery products and works to consolidate the engineering capabilities of smaller shipbuilders through the promotion of energy saving ships by Japan Railway Construction, Transport and Technology Agency (JRTT), the commercialization support of evolving technologies and so on.

## 4 Trends in Air Transport Business and Measures

Despite sharply declining crude prices since late 2014, increases in fuel spending caused by their secular upsurges and other conditions have left airlines stuck in a harsh climate. According to Japan’s air transport results, the number of domestic air passengers, which had move downward after peaking in FY2006, turned for an increase from FY2012 on, with impetus from demand for restoration from the Great East Japan Earthquake, increased demand encouraged by the entry of LCCs and so on, reaching 92.48 million in FY2013 (up 7.5% from a year earlier level).

The number of international passengers also turned for the increase, reaching 15.08 million (up 6.2% from a year earlier level),

same as the domestic passengers.

Since Peach Aviation, Japan’s first full-scale LCC, came into service in March 2012, Jetstar Japan and AirAsia Japan (Vanilla Air at present) followed suit in July and August, respectively, and Spring Airlines Japan in August 2014.

LCCs have been expanding their business activities, with Peach Aviation operating 12 domestic routes and seven