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Japan eyes 70-b.-yen aid to airlines in FY 2022

  • December 9, 2021
  • , Jiji Press , 10:32 p.m.
  • English Press

Tokyo, Dec. 9 (Jiji Press)–The Japanese government plans to provide aid totaling 70 billion yen in fiscal 2022 to domestic airlines, which has been hit hard by the novel coronavirus pandemic, informed sources said Thursday.

 

Specifically, the government will reduce their burdens of airport usage fees and the aviation fuel tax, the sources said.

 

The government decided that it needs to continue its management support for airlines to maintain aviation networks.

 

Still, the scale of government aid in fiscal 2022, which starts in April next year, will be reduced from 120 billion yen in fiscal 2021 as domestic passenger traffic is on a recovery trend.

 

Of the planned fiscal 2022 aid, 51 billion yen will be used to lower airport usage fees, including landing charges for domestic flights. The rate of reduction will be cut from some 90 pct at present to about 60 pct.

 

The government will also reduce airlines’ payments of the aviation fuel tax, imposed in accordance with the amount of fuel they use for domestic flights, by 19 billion yen.

 

In the business year through March next year, Japan Airlines <9201> is bracing for a group net loss of 146 billion yen, while ANA Holdings Inc. <9202>, the parent of All Nippon Airways, is projected to suffer a net loss of 100 billion yen. Both are expected to log red ink for the second straight year.

 

At a time when the recovery of passenger traffic remains slow, Japan’s airline industry also faces growing uncertainties due to the global spread of the omicron variant of the novel coronavirus.

 

The Scheduled Airlines Association of Japan was calling on the government and ruling camp to keep state financial support for airlines in fiscal 2022 unchanged from the previous year at 120 billion yen.

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