Osaka Kansai International Airport
- CAPA Analysis
- Schedule Analysis
- Cargo Analysis
- Route Maps
- Airport Charges
- Fast Fact Report
- IATA Code
- ICAO Code
- Corporate Address
- Kansai International Airport Building 1-banchi, Senshu-Kuko Kita, Izumisano-shi, Osaka 549-8501,
- Domestic | International
- Airport Type
- Other airports serving Osaka
- Osaka Itami Airport
Osaka Kobe Airport
Osaka Yao Airport
- 3500m x 61m
4000m x 60m
- Airlines currently operating to this airport with scheduled services
- Air Busan
Air Hong Kong
Air New Zealand
All Nippon Airways
Beijing Capital Airlines
China Cargo Airlines
China Eastern Airlines
China Southern Airlines
Delta Air Lines
Hong Kong Airlines
Japan Transocean Air
KLM Royal Dutch Airlines
Nippon Cargo Airlines
Spring Airlines Japan
Thai AirAsia X
Yangtze River Airlines
- Airlines currently operating to this airport via codeshare
- Air Canada
Hahn Air Systems
South African Airways
Kansai International Airport is one of three commercial airports serving Osaka, handling both domestic and international flights. Operated by Kansai Airports, a consortium that includes Vinci Airports and Orix, it is the main airport in the region for scheduled international passenger services. The airport opened in 1994 and is constructed on two man-made islands located 40km from the city centre. Kansai is an international hub for JAL and ANA and hosts over 40 airlines.
Location of Osaka Kansai International Airport, Japan
Ground Handlers and Cargo Handlers servicing Osaka Kansai International Airport
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Fuel & Oil Suppliers servicing Osaka Kansai International Airport
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66 total articles
For the first time in Northeast Asian aviation, low cost airlines are poised to overtake full service airlines in a significant way. The market concerned is that between Japan and Korea, where LCCs are rapidly growing, while full service airlines are decreasing capacity. Overall market size and visitor figures are at record highs. This refutes any legacy airline thinking that LCCs "steal" market share; LCCs are growing the market and becoming the future – as they already are in other parts in the world.
LCCs accounted for 1% of available seats between Japan and Korea in 2009, reached 37% in 2016, and so far in 2017 will account for 49% of the market. Limited airport data indicates that LCCs, operating at higher load factors, already transport more passengers than full service airlines, and by the end of 2017 LCCs should easily account for the majority of capacity.
LCCs already fly more airport pairs than their full service counterparts. The LCC development between Japan and Korea illustrates underlying LCC opportunity in Northeast Asia but also reflects on the importance of liberalisation, and for full service airlines to have efficient cost bases.
Japan-China is the third largest international country pair in Northeast and Southeast Asia. The market has expanded due to Chinese outbound visitor growth, with Chinese visitor numbers doubling from 2.4 million in 2014 to 5.0 million in 2015, and 9M2016 shows a further 30% expansion. LCCs account for approximately 10% of the market, and there are an expected three further LCC entrants in the Japan-China market: Peach Aviation, Jetstar Japan and China United Airlines. Their entry, however, comes after the major boom: eight airlines have entered the market since 2014.
The impact of the additional LCCs will be minimal in network size: Peach's four weekly Osaka-Shanghai flights are in addition to an existing 117 weekly flights. Over the long term there are strong opportunities for LCCs (as evidenced by the first mover Spring Airlines), but in the near future the greatest impact from additional LCCs will be in reminding Chinese full service airlines of alternative business models and their own need to reform. To a Chinese airline a Japanese LCC is almost paradoxical: an airline trying to be low cost in a high cost country with low population growth. Yet the relative success of Japanese LCCs provides a case study – and also market challenges.
The rapid growth of mainland China's HNA Group is resulting in companies being added ahead of integration. HNA's two Hong Kong-based airlines, Hong Kong Airlines and HK Express, are increasingly overlapping with each other. That their roles are undefined and uncoordinated risks the two fighting each other – rather than combining their different propositions to address multiple segments of the markets.
Hong Kong Airlines is rapidly growing in Tokyo and Osaka, and launching a new service to Seoul Incheon – its 11th new destination in 2016. These are strong O&D markets and present a change from Hong Kong Airlines' previous staple of connecting traffic from mainland China over Hong Kong, or competing mainly against Cathay Pacific in key regional Asian markets from Hong Kong.
Following Hong Kong Airlines' entry to Tokyo and Osaka it will further increase services to the point where Japan becomes a larger market for it than mainland China. This is of some concern given Hong Kong Airlines' still evolving strategy for Japan, and weakening of the market through the appreciation of the yen.
Jetstar Japan and Peach Aviation have received air traffic rights for China which, if utilised, would grow the Japanese LCC footprint in China – Japan's largest visitor source market. Spring Japan became the first Japanese LCC to serve China in Feb-2016. The absence of Japanese LCCs in China may seem surprising, but there are regulatory hurdles, market access questions and conservatism at Japanese LCCs. AirAsia Japan, launching in 2017, will likely leverage the group's China experience; it is the largest non-greater China airline group serving China.
The prospect of further growth comes as incumbents cite overcapacity. What was once a profitable market now only produces returns in the peaks. All Nippon Airways, the largest airline between Japan and China, reported lower revenue on the back of "a deterioration in the supply-demand environment". Spring China has told Bloomberg that some competitors "aren't well-prepared", and will be "phased out". Overall Japanese LCC routes and capacity may be small but will be watched by Chinese airlines, ever mindful of the need to find new business models.
Dual brand strategies are being put to the test as Hong Kong Airlines relaunches services to Tokyo and Osaka. Its last foray in these markets was before it separated from what became the robust and fast-growing LCC – HK Express. Tokyo and Osaka are HK Express' two largest routes and account for nearly a third of all seats. Ostensibly the two will focus on different market segments, but the core passenger group for each is the leisure traveller.
Hong Kong Airlines is preparing for significant long haul expansion, including codeshares to major Australian cities and its own deployment to North America and Europe. Tokyo and Osaka may indicate what premium traffic and discretionary premium leisure passengers it can win, as well as whether the market sees enough value and sophistication in Hong Kong Airlines or would rather pay more for established Cathay Pacific, or less for HK Express. Hong Kong Airlines and HK Express will jointly account for 24% of both Tokyo and Osaka capacity, compared with Cathay's approximately 43%. The LCC market between Hong Kong and Japan has grown rapidly to where LCCs account for 27% of the total market, including 23% to Tokyo and 35% to Osaka – all from near zero five years ago.
Northeast Asia is often thought of as a laggard for LCC development. After all, 11% of seats within the region are operated by LCCs compared with 56% in Southeast Asia and 40% in Western Europe. But attendees at CAPA's LCCs in North Asia summit at Tokyo Narita (7/8-Jun-2016) heard how these figures disguise significant inroads in certain markets: LCCs account for 40% of domestic Korea capacity, 38% of Japan-Korea and 30% of Taipei Taoyuan-Osaka Kansai.
CEOs from LCCs in Japan, Korea, mainland China, Hong Kong and Taiwan attested to their opportunities but also the challenges. Restrictive slots and traffic rights were a common theme and so too were protectionism, a slowly evolving regulator, and airspace constraints. Northeast Asian LCCs exclusively make up the U-Fly Alliance, while Northeast, Southeast and Australian LCCs are members of the Value Alliance. Southeast Asia is characterised by joint venture airlines operating with a single brand while Northeast Asia has more independent airlines.
LCCs gaining market share in the domestic China market will have the greatest impact on the region's overall share. Asia's airlines have varying strategies to access China growth. By deploying LCCs, Singapore Airlines serves more Chinese destinations than Cathay Pacific.