To implement the programs outlined above, investments likely to be required during the plan periods are estimated below:
Unit: \ 100 mil.
1) Airport construction 28,270 (of which investment relating to disaster prevention measures) (630) (1) Construction of hub airports in major metropolitan areas 21,890 (of which investment relating to disaster prevention measures) (70) New Tokyo International Airport 4,090 Offshore expansion of Tokyo International Airport 5,920 Kansai International Airport (2nd Phase) 7,230 Chubu International Airport 2,650 Tokyo Metropolitan Airport 2,000 (2) Construction of regular airports etc. 6,380 (of which investment relating to disaster prevention measures) (560) 2) Environmental measures for areas surrounding airports 3,370 (of which investment relating to disaster prevention measures) (70) 3) Installation of air safety facilities 4,850 (of which investment relating to disaster prevention measures) (420) Total 36,490 (of which investment relating to disaster prevention measures) (1,120)
(Appendix) Items to note on future airport development
As pointed out in Section I, the primary issue facing airport development in Japan, is the construction of key airports in metropolitan areas that will also function as international hub airports. To assure continuing stable economic and social growth in Japan and to assure a certain level of standing for the country in the world, the important issue is not to miss the timing of airport development. Smooth implementation can only be assured by a careful study of airport development policies, including the choice of a suitable method for such development projects and strict curbs on investment overruns through careful review of project costs. Only upon completion of such reviews, we should start exploring options for financing airport development projects.
When it came to development of new airports, requiring massive investment, Japan has basically stuck to the principle of "user's cost", since demand for air transportation service was growing continuously. But unlike the past, since continuing economic expansion can no longer be taken for granted, it is doubtful whether the conventional approach to airport development will work in the future. In Japan, while airport landing and other charges are important from the standpoint of financing airport development, it is becoming increasingly difficult to hike such charges since they are nearing viable limits.
Moreover, long-term borrowing in the Airport Development Extraordinary Account was introduced in view of the massive investment required for offshore expansion of the Tokyo International Airport as the project got underway. Among the other major considerations for the choice of this approach was the need to smooth out peaks in investment levels and to split the burden between present and future users. However, the borrowing in this account has already reached a massive scale and there is a strong possibility that easy access to borrowed funds will have a negative effect on the soundness of the said extraordinary account. It may even mean leaving a heavy burden to the next generation.
We shall now review the outlook for airport development financing against the backdrop of the above mentioned factors:
- (1) In the future development of key airports in major metropolitan areas will represent a significant percentage of the total airport development costs in Japan.
- (2) The primary factor behind the exceptionally heavy costs of the development of key airports in metropolitan areas is the high population density in Japan. This means that the offshore airport is likely to be the only way out of the noise pollution problem.
- (3) The areas thus reclaimed will form a part of the national landscape and as a social capital, in the form an airport, the entire society will benefit from it.
In view of these consideration, financing for airport construction should, among others, also come from the general account. Since development of a major airport brings about significant economic benefits to the surrounding communities, including increase in employment and economic development, the surrounding regions benefiting from the airport should be asked to share a part of the costs, preferably reflecting the level of such benefits.
Special landing fees, introduced in 1975, were intended to finance noise pollution measures made necessary with the introduction of jet aircraft. Now that the switch over to jet aircraft is almost complete and that environmental measures have become an integral part of airport development (as is evident from offshore airport development projects), the significance of splitting landing fees between regular and special fees is loosing significance. A review of the concept of airport fees is recommended at the earliest possible opportunity in view of these factors.
Note: Parentheses: Indexed to 1994 = 100
Fiscal 1994
(Actual)Fiscal 2000
(Forecast)Fiscal 2005
(Forecast)International (Passengers) 38.86milion people(100) 5.5milion people(142) 6.44milion people(166) (Cargo) 1,997thousand ton(100) 2,540thousand ton(127) 3,050thousand ton(153) Domestic (Passengers) 74.55milion people(100) 92.00milion people(123) 104.20milion people(140) (Cargo) 746thousand ton(100) 910thousand ton(122) 1,080thousand ton(145)
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