A law aimed at utilizing business management know-how from the private sector to operate Japan's airports has entered into force. Under the law, the central and local governments may entrust airport management to private companies while retaining ownership. We urge the central government to select an airport to apply the new management method to at an early date so its effectiveness can be evaluated.
Under the law, central and local governments will continue to own airports for national security reasons and to ensure they can be used during large-scale disasters. Leasing airports for 30 to 50 years, private-sector bodies will manage airports' central functions, including runways, as well as other facilities such as airport buildings and parking lots. They will be allowed to set landing fees as they see fit and pay rent to the central government.
According to accounting settlement analyses by the infrastructure and transport ministry for fiscal 2011, only nine airports were able to generate enough profits from landing fees to cover the expense of runway maintenance. When profits from airport building and parking lot operations were included, the number of airports regarded as operating in the black doubled.
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