TokyoTomo Travel Guide

The International Air Transport Association (IATA) reported that the international passenger traffic results worldwide in the month of November 2009 rose by 2.1 percent compared to the same month a year earlier in terms of revenue passenger kilometers (RPK) with an average seat load factor of 75.4 percent, which is a pre-economic crisis level. Although the passenger demand in November rose 6.4 percent compared to the lowest level seen in the first quarter of 2009, it is still 6.4 percent below the peak recorded in the first half of 2008. Also compared to the previous month, the passenger demand actually declined by 0.7 percent in November. “Passenger traffic demand continues to grow,” said Giovanni Bisignani, IATA’s Director General and CEO, but warned that the airlines can not anticipate any significant improvement in yields within the next several months.

By regions, Asia-Pacific carriers saw its demand grow 5.1 percent in terms of RPK (revenue passenger kilometers) with a seat load factor of 76.0 percent, driven by the economic recovery and its growth within the region with the exception of Japan, IATA observed. Latin America carriers also enjoyed an 8.2 percent increase in RPK, revenue passenger kilometers with an average seat load factor of 75.8 percent. Middle East carriers also had an increase of 16.5 percent in RPK, which is the highest in the region. Its growth is attributed to the robust travel demand in Asia and the region’s growing capacity offer, said IATA. The seat load factor of the Middle East carriers averaged 73.9 percent, but available seat kilometers (ASK) soared by 15.4 percent, outpacing the other regions where the growth was either negative or nominal. Meanwhile, European and US carriers posted a decline of 3.0 percent in RPK, revenue passenger kilometers, registering a seat load factor of 74.7 percent and 78.1 percent respectively.

Source: Travel Vision

Travel Vision Inc. provides information on the travel industry in Japan via "Daily Travel Vision", a Japanese-language e-mail newsletter, and the "Travel Vision" website. There are nearly 110,000 people working in the Japanese travel industry, and Travel Vision is proud to be bringing travel news to more than 30,000 people through Daily Travel Vision.

The International Air Transport Association (IATA) reported that passenger demand rose 0.5 percent worldwide year-over-year during the month of October. It represents an increase of six percent compared to the month of March, which was considered to have hit the lowest point. It also showed a gradual recovery trend with the average seat load factor of 78 percent returning to the level prior to the global economic downturn.

IATA analyzes, however, that adjustment of seat capacity by reducing 3.3 percent actually helped the seat load factor to go up in October. The yields yet remained sluggish. The industry saw a “modest fare increase”, but, in real terms, air fares went down by about 20 percent compared to the same month a year earlier. “The global economic crisis has cost the airline industry two years of growth,” commented Giovanni Bisignani, IATA’s Director General and CEO.

Airlines serving in Asia-Pacific managed a traffic increase of 0.9 percent, although it is lower than the 2.1 percent achieved in September. Meanwhile, Middle Eastern carriers, posting the region’s highest traffic increase of 14.3 percent, continue to enhance capacity offer. The month of October alone saw a capacity increase of 15.3 percent, reported IATA.

Source: Travel Vision

Travel Vision Inc. provides information on the travel industry in Japan via "Daily Travel Vision", a Japanese-language e-mail newsletter, and the "Travel Vision" website. There are nearly 110,000 people working in the Japanese travel industry, and Travel Vision is proud to be bringing travel news to more than 30,000 people through Daily Travel Vision.

According to International Air Transport Association (IATA), seven countries including United States, endorsed by the European Commission, declared on November 16 to waive the national ownership requirements pertaining to the bilateral air service agreements. Currently, a bilateral air service agreement must be concluded between the two countries concerned to start new scheduled services. The national ownership requirement forms part of the bilateral air service agreement, limiting a traffic right to an airline in effect owned by a government or its nationals. If, for instance, Japan concludes a bilateral air service agreement with a certain country, Japan reserves the right to limit a traffic right to the airline owned by the counterpart or its nationals holding more than half of its capital.

The countries that signed the documents other than the United States and the European Commission are Chile, Malaysia, Panama, Singapore, Switzerland and the United Arab Emirates. The declaration reads that each state should respect the policy of other countries in seeking to encourage foreign investment in their airlines and, accordingly, should waive the national ownership requirements or otherwise should not exercise rights under the existing bilateral air service agreements. In another words, it implies that an airline, even if bought by a foreign capital, can still maintain its own flight operations. A buy-out by foreign capital, therefore, will become easier.

IATA, who is of the opinion that the restrictions including the national ownership requirements weaken an airline’s financial structure, considers that the waiver of the national ownership requirements should lead to a cross-border formation of an airline group, thus propelling a possible restructuring of the airline industry. The declaration is non-binding, but it is a fact that those seven countries and the European Commission who signed the declaration represent some 60% of commercial aviation worldwide. It is indeed a strong message, as IATA indicated, that the declaration shows a future direction to which the airline industry is expected to go. Remaining
countries may simply not be able to ignore their future direction. IATA intends to call for even more countries to join the agreement also in the future.

In Japan, in terms of project approval, foreign investment is limited to a capital ratio of one-third. From the fiscal year 2007 to 2008, the “KISEIKEN,” the “Study Group on Government Regulations and Competition Policy” under Japan Fair Trade Commission (JFTC) held series of discussions regarding the application of the antitrust law to the existing aviation service agreements, but it turned out to be a dead issue amid the severe aviation environment faced by the airlines.

Also, the declaration emphasizes “Freedom to access market” and “Freedom to set fares.” In terms of the freedom to market access, the airlines concerned consider, in the declaration, “waiving the provisions in the existing air service agreements that limit the number of airlines with or without restrictions imposed on the respective market infrastructures.” Equally, in terms of the freedom to set fares, they also consider “waiving the provisions which require the filing of tariffs” and also “waving or otherwise abstaining from the provisions which interfere with pricing policies made in accordance with the market mechanism.”

Source: Travel Vision

Travel Vision Inc. provides information on the travel industry in Japan via "Daily Travel Vision", a Japanese-language e-mail newsletter, and the "Travel Vision" website. There are nearly 110,000 people working in the Japanese travel industry, and Travel Vision is proud to be bringing travel news to more than 30,000 people through Daily Travel Vision.