The Move Towards Airport Privatization In Japan

Japan's aviation policy has been focusing on building more airports and expanding the network of routes. This policy of "building and expanding" was made possible by the airport development special account (so called "the pool system"), where revenues from all airports are collected into one account and then re-distributed. At present, there are 98 airports in Japan, among them 28 are controlled by the national government and the rest by the local governments.

The policy of "building and expanding" had a certain level of rationality during the period of population increase and rapid economic growth when the airport users were increasing. However, under the present circumstances, including Japan's declining population and low economic growth as well as the financial crunch of the country, a re-examination of the policy is unavoidable and necessary. The balance of income and expenditure of the 25 state-controlled airports indicates that 20 of them are running a deficit