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Kansai Airport chief pledges to implement landing fee cut.

TOKYO, Dec. 20 Kyodo

The head of Kansai International Airport, the gateway to Japan's second largest metropolitan region centering on Osaka, on Wednesday pledged to cut landing fees for international flights from next spring, despite no financial support from the central government.

At a news conference in Tokyo, Kiyoyasu Mikanagi, president of Kansai International Airport Co. (KIAC), said the airport authority will go ahead with the reduction as scheduled, but the cut will be slightly smaller than planned.

For a limited period of two years from next fiscal year, beginning April 1, landing charges at the airport will be lowered by 200 yen per ton, resulting in a fee of 830,000 yen per landing for a jumbo jet, from the current 910,000 yen, according to Mikanagi.

Initially, the reduction was to be financed by sharing an estimated cost of around 2.5 billion yen. The central government and the KIAC would provide a combined 2 billion yen, while local governments would jointly offer 500 million yen, according to the initial proposal.

But the Finance Ministry, in announcing its budget draft for next fiscal year on Wednesday, proposed no appropriations for the landing charge reduction at the airport, saying it would be tantamount to providing a state subsidy.

In view of the decision against support by the central government, the local governments concerned, including Osaka Prefecture, may back down from the cost-sharing plan, industry sources said.

Mikanagi said KIAC alone will provide the 2 billion yen by streamlining its operations.

Narita and Haneda airports, both serving Tokyo, and Kansai airport are claimed to be the world's most expensive international airports to operate into, according to the Foreign Airlines Association in Japan.
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Publication:Japan Transportation Scan
Date:Dec 25, 2000
Words:282
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