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EXCLUSIVE: Japan eyes basic policy to help airlines

  • February 17, 2021
  • , Jiji Press , 1:28 p.m.
  • English Press

Tokyo, Feb. 17 (Jiji Press)–The Japanese government will draw up a basic policy to support domestic airlines during crises such as a pandemic, Jiji Press learned on Wednesday.

 

Under the policy, the government will extend public support to airlines flexibly while requiring them to promote reforms.

 

The initiative will be included in a bill to revise the aviation law. The government will adopt the bill in March and submit it to the ongoing session of the Diet, Japan’s parliament.

 

The government presented the initiative at a meeting of the ruling Liberal Democratic Party on Wednesday.

 

In return for support from the government during crises, airlines and airport operators will be required to submit business improvement plans and report on progress in the implementation of the plans.

 

For the coronavirus pandemic, improvement plans are expected to include a passenger demand outlook as well as a fleet management plan during a recovery phase.

 

Japanese airlines are working to reduce labor and other costs for survival as they are struggling with the fallout from the coronavirus pandemic.
 

ANA Holdings Inc. <9202>, the parent of All Nippon Airways, anticipates a record net loss of 510 billion yen for the year ending next month.

 

Rival Japan Airlines <9201> expects a net loss of 300 billion yen for the year. Budget airline AirAsia Japan scrapped all of its four domestic and international routes.

 

The government included 120 billion yen in funding for airline industry support measures in its fiscal 2021 budget plan, including reductions in landing fees and aircraft fuel tax and zero-interest loans to airport operators.

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