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editorial/ cover story - Air World

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AVIATION NEWS<br />

display at the Africa Aerospace<br />

and Defence (AAD) show at<br />

Waterkloof <strong>Air</strong> Force Base<br />

outside Pretoria.<br />

The aircraft in question has been<br />

brought especially for the event.<br />

It is equipped with the most<br />

advanced technologies and<br />

features the new Armonia cabin,<br />

designed for ATR by the<br />

prestigious Italian designer<br />

Giugiaro. The ATR 72-600 is the<br />

best selling regional aircraft in<br />

the world and offers the lowest<br />

seat mile cost and CO2 emissions<br />

in the regional market.<br />

Its presence is meant to showcase<br />

company's determination to meet<br />

growing demand in one of the<br />

world's most vibrant economies<br />

and its trust in the African<br />

regional aviation market<br />

potential.<br />

ATR has substantially developed<br />

its presence in the Africa and<br />

Middle East region, increasing by<br />

30% its fleet of aircraft as well as<br />

the number of its operators within<br />

the last three years. ATR counts<br />

today 35 operators in this region,<br />

operating more than 100 ATs.<br />

Their feedback is very positive<br />

and this let us believe that this<br />

market will keep growing in the<br />

near future. Our investment there<br />

is the proof of our confidence in<br />

this market.<br />

This also demonstrates how ATR<br />

is applying its regionalization<br />

vision to be close to its<br />

customers.<br />

As evidence in support, the<br />

company has recently set up a<br />

new training center in<br />

Johannesburg, South Africa, thus<br />

marking a new stage in its global<br />

training policy. It emerges as a<br />

center of excellence for not just<br />

South Africa but worldwide<br />

offering access to world-class<br />

training technology and solutions<br />

to commercial aviation industry.<br />

(Tokyo) - The International <strong>Air</strong><br />

Transport Association (IATA)<br />

called on Japan to capitalize on<br />

the economic benefits of air<br />

transport by improving the<br />

sector’s competitiveness.<br />

“I am a Japan optimist. And in the<br />

case of aviation, these last few<br />

years have seen some of the most<br />

promising changes in Japanese<br />

air transport,” said Tony Tyler,<br />

IATA’s Director General and<br />

CEO. Tyler’s remarks to the<br />

American Chamber of<br />

Commerce in Japan highlighted<br />

the opportunities that are being<br />

created with the introduction of<br />

new capacity into the long-underserved<br />

Tokyo market as well as<br />

market liberalization.<br />

Japanese aviation comprises the<br />

world’s third largest domestic<br />

market, about 5.5% of global<br />

traffic and 11% of global industry<br />

revenues. “Japan is important to<br />

global air transport. And air<br />

transport is critical to Japan.<br />

Could this island nation have<br />

grown to be the world’s third<br />

largest economy without<br />

effective air links? The answer is<br />

no. In fact, there is no clearer<br />

example of the aviation industry<br />

being a catalyst for economic<br />

growth than Japan where it<br />

provides vital—irreplaceable—<br />

links to global markets. But I<br />

believe that aviation could be an<br />

even more powerful force in<br />

Japan’s economy,” said Tyler.<br />

An Oxford Economics study<br />

revealed that aviation has a<br />

significant footprint in the<br />

Japanese economy, supporting<br />

0.7% of GDP (JPY 3.135 trillion)<br />

and 0.7% of the Japanese<br />

workforce (429,000 jobs).<br />

Including aviation’s contribution<br />

to tourism, the figures rise to<br />

1.0% of GDP (JPY 4.501 trillion)<br />

and 1.0% of the workforce<br />

(620,000 jobs).<br />

Comparing the impact of aviation<br />

on the Republic of Korea’s<br />

(Korea) economy to that of Japan<br />

illustrates the potential for<br />

aviation to play an even larger<br />

role as an economic catalyst in<br />

Japan. “In Korea, air transport<br />

and related tourism activities<br />

support 2.2% of GDP and about<br />

2.1% of the workforce. So,<br />

aviation has twice the impact on<br />

the Korean economy as it has in<br />

Japan. Aviation has the potential<br />

to deliver many more benefits in<br />

Japan,” said Tyler.<br />

Tyler focused on two findings<br />

from the <strong>World</strong> Economic<br />

Forum’s (WEF) Travel and<br />

Tourism Competitiveness Report<br />

to illustrate the need to focus on<br />

strengthening competitiveness:<br />

• Visa Requirements: When<br />

analyzing the number of<br />

countries granted visa-free entry,<br />

Japan ranked in 76th place while<br />

Korea ranked at sixth place<br />

alongside Malaysia, Singapore<br />

and Hong Kong. “This is a big<br />

handicap if Japan is to make its<br />

ambitious target to increase<br />

inbound tourism to some nine<br />

million visitors this year with an<br />

emphasis on attracting<br />

international meetings,” said<br />

Tyler.<br />

• Cost Competitiveness: Of<br />

the 139 countries in the WEF<br />

rankings, Japan ranked at 106 on<br />

airport charges and ticket taxes<br />

while Korea was 33rd. This<br />

corresponds to a Leigh and Fisher<br />

benchmarking survey of airport<br />

charges which found Kansai<br />

International <strong>Air</strong>port to be the<br />

second most expensive airport in<br />

the world and Narita to be the<br />

Strengthening Japan’s Aviation<br />

Competitiveness<br />

-Reducing Cost of Infrastructure<br />

sixth most expensive.<br />

The leakage of domestic transit<br />

traffic to hubs outside of Japan<br />

illustrates the impact of Japan’s<br />

high cost environment. While<br />

approximately 1.4 million<br />

travelers make<br />

d o m e s t i c / i n t e r n a t i o n a l<br />

connections at Narita annually,<br />

about 500,000 use Seoul’s<br />

Incheon airport as their transit<br />

point. “This is just one<br />

illustration that the negative<br />

impact of high costs on the<br />

aviation business in Japan is real<br />

and measurable. At a time when<br />

Narita is struggling to utilize<br />

capacity, it can ill-afford the lost<br />

business,” said Tyler.<br />

“There are opportunities for<br />

positive change. The New Kansai<br />

International <strong>Air</strong>port Company—<br />

the merged entity managing Itami<br />

AIR WORLD October 2012-14

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