transportation routes are promoted. As for the availability of human resources in the shipbuilding industry, the utilization of foreign human resources ready for work has been pursued as an emergency and temporary response (scheduled for expiry in FY 2020) while adhering to the key principle of seeking human resources from within Japan. For domestic human resources, specific measures are being implemented with industry-academia-government collaboration, which include promotion of internships for high school teachers and students to deepen their understanding on appeals of shipbuilding.

In addition to building on efforts made up until now, we will take various measures in a comprehensive manner to drive forward production reforms that increase product/service capabilities, ability to develop new business areas and shipbuilding capability/talent through innovations in the maritime industry by utilizing rapidly advancing information technologies, thereby contributing to stronger economy and regional revitalization.

## (4) Ocean industries

The marine resources development, represented by subsea oil and natural gas production, is an area where medium- to long-term growth is expected. Since many types of ships are used in this area, it is hoped that the Japanese maritime industry expands into this area, leveraging technologies and experience accumulated, and taps global growth for the economic growth of Japan. To this end, we are promoting efforts toward establishment of consortiums for training engineers in this area through industry-academia-government collaboration, in addition to supporting technological development relating to marine resources development, in order to enhance international competitiveness of Japan's ocean industries.

## 4 Trends in air transport business and measures

In regards to circumstances surrounding the aviation industry, demand was robust overall due to, among other factors, a moderate recovery in domestic and overseas economies, cheaper oil prices and a rise in the number of inbound foreign visitors. According to Japan’s air transport results, the number of domestic air passengers, which had moved downward after peaking in FY 2006, turned for an increase from FY 2012 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 95.19 million in FY 2014 (up

2.9% from a year earlier level). The number of international passengers also turned for the increase from FY 2012, reaching 16.45 million (up 9.1% from a year earlier level), same as the domestic passengers.

Since March 2012, LCCs entered the Japanese market one after another with four LCCs operating as of March 2016. LCCs have been expanding their business activities with Peach Aviation operating 13 domestic routes and nine international routes; JetStar Japan, 17 domestic routes and five international routes; Vanilla Air, three domestic routes and three international routes and Spring Airlines, two domestic routes and two international routes.

In the meantime, Skymark Airlines filed for the commencement rehabilitation proceedings under the Civil Rehabilitation Law on January 28, 2015. Court-led proceedings are now underway.