The nation's aviation policy marked a turning point in October when Tokyo signed an agreement with the United States to fully liberalize their civil aviation markets in parallel with the resumption of full-fledged international operations at Haneda airport.

While the open skies treaty, which will allow low-cost airlines to fly to airports in Japan, is expected to benefit passengers with lower fares and more flights, domestic airlines and airports are expected to face fierce competition for survival as Japan seeks to conclude similar pacts with other markets.

"We hope to reach (open skies) accords with members of the Association of Southeast Asian Nations" and other Asian economies, Land, Infrastructure, Transport and Tourism Minister Sumio Mabuchi said recently.