Policy Research Institute for Land, Infrastructure, Transport and Tourism. Ministry of Land, Infrastructure, Transport and Tourism

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The future of air transport markets and Low Cost Carriers in East-Asia

summary

As the globalization in economy and society has been progressing and the formalization of economic partnerships among countries has been spreading, air transport services, which is a field of industries and an infrastructure to assist economic and social activities, now faces a change.

Recently, inter-regional trade relationships have been becoming closer and the movements of people and goods have been expanding along with economic growth in East-Asia. In this situation, air transport services as an international infrastructure should be adequately supplied to handle a dynamic demand increase in the region in order to facilitate vigorous economic and social activities and enhance Japan's international competitiveness in the future. It is also important that air transport markets in East-Asia are liberalized step by step and that with more liberal environment airlines expand their service networks and offer various tariffs and services in a customer oriented manner.

In more liberal situation, Low Cost Carriers would be expected to have more influence on air transport markets in East-Asia as in Europe and America, which are predecessors in liberalization. Parties concerned in air transport in Japan, with precise comprehension of productivity improvement and creation of new passenger demand by Low Cost Carriers, should properly handle issues on the liberalization of air transport markets and the improvement of efficiency of air transport services in order to enhance the international competitiveness of Japanese airline industry and Japan itself.


Key words

Air transport market, East-Asia, Liberalization, Low Cost Carriers

issue

Reports No.74/2006 Oct.

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