日本におけるビジネス機の在り方を考える

Global Development

1.Global reshaping of aviation industry was initiated by deregulation in USA in 1978.

2. 35 years later ended in 3 consolidated US airliners with American/USAir merger.

3. EU also grouped around 3 major airliners Air France/British Airways/ Lufthansa.

4. Globally, 3 mega-alliances Star Alliance, One World, and Sky Team were formed.

5. LCC appearing in horizon in 1978 became a major force throughout the world.

6.ABACE , Dubai Air Shaw in 2013 demonstrated emerging power of BRICs

7. Continued weak economy polarized business aircraft users between “Rich” and more economy conscious common users.

8. “Rich” kept purchasing business aircrafts above $20MM.

9. Common users are seeking business aircrafts as low as $1~5MM.

Japanese Development

1. Global restructuring obliged Japanese flag carrier JAL to file chapter 11 in 2010.

2. JAL emerged after 2 years with strengthened balance sheet.

3. ANA joined Star Alliance in 1999 while JAL joined One World in 2007.

4. Japan was late in allowing LCC in 1998.They were LCC of Australia, Korea, China.

5. ANA and JAL started LCC operation in collaboration with foreign LCC in 2012.

6. LCC none-the-less, face trouble securing needed slots in congested airports.

7. Korean and Chinese LCC command advantages in Western Japan due early start.

8. Various deregulation measures for business aviation were completed during 2013.

9. There is never a perfect deregulation but current achievement is what one can best hope today which will be described later.

Brief Chronology of Deregulation

1.In 1989 American business aircraft supplier initiated marketing effort in Japan.

2 .Initial works were through sales agent who were major Japanese trading houses.

3. NBAA, American Embassy and US Chamber of Commerce also collaborated.

4.These early efforts resulted in establishment of JBAA (Japan Business Aviation Association) in May 1996.

5.JCAB (Japan Civil Aviation Bureau) allocated 3 slots in Narita for business aircraft.

6.By mid-2000, except Narita, Haneda, all airports were opened for business aircraft

7.Capacity expansion during 2009~10 allowed slots be expanded at Narita and Haneda

8. There were step-by-step gradual other deregulations mostly fulfilled by end 2013.

9.Despite, this will not result in immediate use of business aviation.

Slots at Airports Available for Business Aircrafts

1. Cause of business aircrafts not used in Japan was attributed to lack of slots.

2. JCAB therefore allocated 3 slots in Narita in autumn 1996.

3.Statistics reveal no Japanese business aircraft left Narita during past several years

4.3 slots were also allocated at Haneda in 2010.

5.Only 1~2 Japanese business aircraft left Haneda during FY 2011/2012.

6. Less than 10 Japanese business aircraft left Japan to overseas in any year.

7. Reason is plain and simple. There was no aircraft capable to make overseas flight.

8. 24 Light jets were available 5 owned by news media 10 by individual rural owners.

9. None are used outside of Japan and none is even interested in use outside of Japan.

10 .There are one Citation CJ2, 4 Citation 560 which cannot fly long distance.

11. Availability of slots for foreign visiting business aircrafts are obviously good news.

12.None-the-less, in 2012 only 363 (USA) and 77 (Europe) aircrafts visited Japan

13 .In 2012,total foreign visiting flights to Haneda was 587 and Narita 247.

14. 12 slots allocated in Narita and 3 in Haneda can receive 4,380 and 1,090 flights/y.

15. More than 1.6MM/y American visits Japan only scant few use business aircrafts.

16.Slots allocated in 1996 and then-after were grossly underutilized to this date.

14. Though availability of slots were widely cited as culprit, it was never a real cause.

Other Regulatory Issues

1.High user fee for Haneda ($6,500 for G-550) is to be reduced by 50% for next year.

2. Privileged few who use business aircraft pay much more to cover empty leg cost.

3. Heavy jets are available from Guam, Philippines, China by footing empty leg fee.

4. Restrictions on providing pre-notice, parking regulation etc. were greatly reduced.

5. Most of the further hurdles can be resolved by use of secondary airport Ibaragi.

6. Despite Ibaragi airport opened in 2010, nobody seems to pay serious attention.

7.JCAB from out-start in 2010 is recommending use of Ibaragi for business aviation.

8.JCAB lifted cabotage restriction for foreign flights visiting other Japanese airports

9. Crowning touch was introduction of Japanese FAR Part 135 equivalent duing 2013.

Where To ?

1.Above chronology and step-by-step improvement is obviously welcome.

2. On the other hand, it has ironically revealed the “True Cause”

3. All the regulatory issues undoubtedly important, was not the true critical issue.

4. Plainly, cost difference of commercial airline v.s. business aircraft is prohibitive.

5 Outlined in following column, difference is so great to defy any serious comparison.

6.Strict feasibility evaluation was averted in fear to scare away potential customers

7. Marketing was handled by hardware agents with conspicuous absence of users.

8. NBAA represents broad user /customer interest which was not the case in Japan.

9. Chartering fee was jealously guarded secret not to let potential users to turn away.

10. Japanese operators of low cost aircrafts never participated in the process.

11. As result, there is not a single aircraft above $18MM owned by civil sector.

12. Mid~Heavy Business Jets are all owned by public sector or military use.

13 Civil sector own 24 light jets 2 being micro-jets incapable of flying overseas.

14.Mid~Heavy Jets are called in from neighboring countries if necessary.(very rare)

15.Civil sector own more than 1,000 light fixed wing aircrafts and rotorcrafts

16.Price of these aircrafts on average are between $0.3~1.5MM

17. Even in EU,USA market is splitting to over $20MM and $1~5MM below.

18. Among various business uses, passenger transport is least popular usage.

19. Reason being availability of other competitive means of transportation in Japan.

20. Reluctance to disclose true cost slowed or stalled the process.

Price Consideration

1. Business aircraft was in use in Japan well before establishment of JBAA

2. Cost of these aircrafts were between $0.3~1.5MM as already stated.

3. There were several heavy jets, which all moved out of Japan by mid~2000.

4. American business aircraft supplier/agents scoffed off low cost aircraft as kid’s toy.

5. Heavy jets of Boeing, Gulfstream, Bombardier are available from neighboring area.

6. Handful of light jets cater inland transportation for visiting foreign passengers.

7.Japan being egaritarian society, there are very few “privileged”/“Super Rich” users.

8.Rescue or emergency medical use will pay higher cost for need to save human life

9.Businessmen must assess cost evaluation with competing means of transportation

10. Airfare between Tokyo-New York is 50~100 times higher using business aircraft.

11. Commercial airfare business class is $4~8,000 v.s.$350~400,000 for business jet.

12. Domestically, business jet costs 50~100times higher than commercial airline fare.

13.Light jet cost of $12~15/㎞contrast with commercial airline fare of $0.12~15/㎞

14 Most expensive ground transportation taxi cost $3.30/㎞ v.s. light jet of $12~15/㎞

15.There is no way to justify use of business jets with this overbearing cost difference.

16. During 2012, 363 USA and 77 European business jets visited Japan.

17. They carried fraction of several hundred thousand business visitors to Japan.

18. Overwhelming majority of Western business people use commercial airlines.

19.Illusion of global trotters flying business jet freely need to be rectified and restated

Possible Alternatives

1. Engage “broadly defined business aircraft operators” operating light aircrafts.

2.98 airports are available in Japan all served by much inexpensive commercial lines.

3. None-the-less, commercial airlines fly radial routes from major cities.

4. Horizontal moves between regional airports require general aviation.

5. Meanwhile, 789 rotorcrafts connects 30,000 heliports throughout Japan.

6.541 out of above 789 can be categorized as “broadly defined business aircraft”

7. Eurocopter and Robinson completed full service line facilities in Japan.

8. Bell is well established in Japan catering to broad customer base.

9.Bell,Eurocopter,Robinson are all developing light rotorcraft targeting around $1MM

10. Emergence of Garmin avionics made IFR possible for light aircraft and rotorcraft.

11. It requires JCAB to permit IFR possibly by foreign assistance of FAA,HIA etc.

12.Part 135 new general aviation rules offer incentive for fresh review of light aircraft

13.2020 Tokyo Olympic necessitate serious use of secondary airports Ibaragi/Yokota

14. Other neighboring airports require rotorcraft transport services to Tokyo.

15.This in turn would necessitate Tokyo to build heliports within metropolitan Tokyo

16. There are 3 civil heliports within metropolitan Tokyo requiring several more.

17.Heliports built can serve near-by Kanto area with GDP exceeding UK or France

18. Key to success is cross industry collaboration aiming loose central operation

19. Central purchase/maintenance/operation to achieve better economy is essential.

20. Concept of centralized operational system is not new but need to be implemented.

21Japanese model of business aviation will be different from America or Europe

22.

Inexpensive light aircrafts supplementing highly developed transportation system.

23.Japan is small mountainous nation population inhabiting within size of Delaware

24. No need of high speed long distance flying expensive aircrafts.

25.Japan is covered by sophisticated public/civic transportation including air service.

26.Dense population allows high utilization resulting in low transportation fare.

27.Users flying overseas enjoy low airfare as fruit of mass transportation.

28.Japan is connected to all major global cities by major international airlines

29 Japanese use commercial airlines to reach major cities picking connecting flights

30.If required, local business aviation is used to reach area of poor access.

31That is the established business customs for past quarter~half centuries.

32.Many overseas Japanese business people own or charter local business aircrafts.

33.Japanese chartered or owned business aircraft overseas for past 25~50 years

34.Image of Japanese not benefiting from business aviation is misconception.

35.Domestic flight cost is only $0.12~0.15/ ㎞,super-express train $ 0.15/㎞.

36.In contrast, even light jet cost $12~15/㎞that preclude any further consideration.

37. There is no way business jets can match available competitive transportation. 38.General aviation will serve horizontal transportation in rural area and as short hop air taxi near city area.

39.One missing factor is method to measure manpower cost saved by use of business aviation, something like NBAA’s Travel$ense software that need to be developed

40.Japanese model is different in comparison to continental nations with much less densely populated country such as Australia/Brazil/Canada/China/EU,/India/Russia and USA

41.Japan can be a model of smaller countries with dense population requiring relatively inexpensive low cost business aviation.

42.Rotorcraft qualify as low cost hardware, short distance carrier requiring only helipad to land, occupying small space. Land and space is scarce, expensive and hard to come in Japan.