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. The Act on Management of Privatized Airports enforced in July 2013 is expected to stimulate aviation demand by leveraging the resources of private sectors.

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. Year 2012 witnessed the launch of an interim LCC receiving facility at Narita International Airport, Japan's first LCC terminal at Kansai International Airport and an interim LCC terminal leveraging existing facilities at Naha Airport. In addition, the construction of LCC terminals is being contemplated for Narita International Airport for completion by the end of FY2014 and for Kansai International Airport for completion by the end of FY2016. The feasibility of constructing a low-cost terminal is being explored at Chubu International Airport as well.

The second is the reduction of the airport facility fees, including landing fees. Efforts that began in FY2012 continued into FY2013 to mark down or review the airport facility fees, including landing fees at Narita International Airport and Kansai International Airport.

### c. 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 55 business aviations are registered in Japan (in 2013), against the largest owner U.S. with about 19,000 business aviations registered in the same year. Business aviations are, thus, yet to be popular in Japan.

Hardware has been developed and regulations eased to get better prepared for hosting business aviations flying into Japan as explained below.

Ongoing efforts made at the metropolitan airports in pursuit of better user convenience include constructing new routes to trim the time and distance business jet passengers take to complete arrival/departure procedures and to gain access to the terminal buildings.

In October 2013, a step was taken to hasten the entry of business aviations into Japan by authorizing foreign-registered business chartered planes flying into Japan to conduct air services between the domestic flight sectors that connect to their routes if they meet a certain set of conditions. Further, a comprehensive review standard relating to flight operations was enforced in December 2013.

The Ministry will consider phasing in measures designed to accelerate the reception of business aviations at the airports nationwide, as they are practicable, with reference to the measures taken in overseas while exploring measures to consolidate the usage of business aviations, such as disseminating information proactively and easing regulations relevant to business aviations.