Japan to Maintain Rule on Unused Slots at Narita Airport

Tokyo, March 16 (Jiji Press)--Japan's transport ministry has
decided to maintain and apply a rule that unused slots held by airlines at
Narita International Airport near Tokyo are declared forfeit, to allow their
use by other airlines, Jiji Press learned Monday.
The decision came after opposition to a suspension of the rule from
All Nippon Airways <9202>, which is believed to be operating international
flight services more efficiently than rival Japan Airlines <9205> and is
looking to increase its number of slots, informed sources said.
Under the rule, the Ministry of Land, Infrastructure, Transport and
Tourism can declare forfeit a landing slot held by an airline at Narita if
the utilization rate falls below 80 pct.
JAL, which has three times more international flight services than
ANA, is expected to face a tough decision about whether to satisfy the
required utilization rate even if it suffers losses or to give up some of
its unused slots, the sources said.
Depending on the decision, JAL may end up suffering further
earnings deterioration and reducing or closing additional numbers of
unprofitable domestic flight services, the sources said.
Earlier this year, the ministry started considering a temporary
suspension of the rule as a support measure for airlines, with demand for
international flight services down by 20 to 30 pct year on year because of
the global economic slowdown, the sources said.
In the past, the ministry has suspended the rule as an exceptional
measure.
Such suspensions include those in response to sharp falls in demand
following the Sept. 11 terrorist attacks on the United States in 2001 and
after the outbreak of severe acute respiratory syndrome, or SARS, in Asia,
and the breakout of war in Iraq in 2003.
In the face of the deepening global financial crisis, the ministry
planned to include a temporary suspension of the rule among support measures
for the airline industry it will compile in late March, the sources said.
But ANA expressed strong opposition to a suspension as it is
leading JAL in efforts to boost profitability on international flight
services and looking to increase its number of slots from the medium- and
long-term perspective, the sources said.
Given that a temporary suspension of the rule basically requires
the consent of the airlines involved, the ministry eventually decided not to
introduce the measure, the sources said.