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    Recorded at CAPA LCCs In North Asia, 7-8 Jun 2016

    Kansai Airport CEO Update

    Osaka Kansai was the first airport to be privatised in Japan. Airport ownership was transferred with high momentum as Kansai posted 20% growth on the back of strong inbound demand for tourism. Kansai in 2012 opened Japan's first low-cost terminal and in early 2017 will conclude an expansion on terminal two to have dedicated space for domestic and international low-cost flights. Growth comes with pressure on infrastructure and Kansai is working with Japanese authorities and UK-based NATS to improve air space.

    Transcript

    Emmanuel Menanteau:As you probably hear today, these 2 airports from Kansai, who are some of the largest airports in Japan, have been privatized by the Japanese government. Kansai is a formidable— is a great region. Especially to attract tourism. The catchment area of Kansai has a great potential for tourism coming mostly from Asia, North Asia, China, Korea. Last year we achieved more than 20% growth, especially on the international traffic, linking together the whole region and of course attracting those people to visit the historical places of Kyoto, Osaka, Kobe, Nara. Kansai International Airport has been the first airport building an LCC terminal in 2012. We are now expanding thanks to this growth that I've just mentioned. We will achieve early next year our expansion of this so-called Terminal 2, where we will double the capacity and the size of this terminal with a dedicated space for domestic and dedicated space for international, connecting domestic and international under this LCC terminal. This is the result of growth, of course, for the last 5 years, and especially Kansai International Airport, KIX, has been growing very fast at a speed of more than 10 to 15% a year. Terminal 1, which is the legacy terminal on this island, has been welcoming more and more passengers, more and more airlines. And the result of that is true as some peak time reached some congestion about slots, availability of slots for air traffic movement, but slots also on the ground, parking slots. So we have been working with the civil aviation of Japan. We have been working also with UK civil aviation NATS. Together with the Civil Aviation of Japan to find new solutions in the air traffic systems, but also working with the authorities and ourselves to better manage the slots on the ground. So we are working on it. We have some congestion at the especially peak hours and during the day. And of course, we are looking at finding solutions in the near future. Kansai air traffic system is a little bit specific. Because there are 3 airports in a very close area of the Kansai Bay, which is Kansai International Airport, KIX, Itami Osaka Airport, the traditional, the original airport of Osaka, and Kobe. So the air traffic system is mixing, is merging within these 3 airports' air traffic management systems, and there are some restrictions. Within this airspace. Nevertheless, yes, we are working with the air traffic and the civil aviation to find new ways and technology especially to reduce what we call spacing between aircraft and reduce as well the time on the ground for the aircraft in order to increase the number of the frequencies. of landing and takeoff of the airport.

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