Narita International Airport Today and Outlook for the Future TFWA Asia Pacific Exhibition & Conference Workshop A : Rediscovering Japan 8 May, 2017 Hideki Hayashida Senior Vice President and Executive Divisional Director, Marketing Division Narita International Airport Corporation (NAA) Table of Contents 1. Narita Airport Today 2. Air Transport Demand in Asia 3. Becoming an Advanced Tourism Country 4. Further Function Enhancements at Narita Airport 5. Air Route Network Expansion Initiatives 6. Creating Attractive Retail Spaces 7. ʻOmotenashiʼ at Narita Airport 8. Anime Tourism 2 1
1. Narita Airport Today 3 Overview of Narita Airport Runway B (2,500m) Terminal 2 (Oneworld) Terminal 3 (LCCs) Terminal 1 North (SkyTeam) Terminal 1 South (Star Alliance) Passenger Numbers (Actual in FY2016) No. of Pax : 39.6 million p.a. Int'l Pax : 32.4 million p.a. Dom. Pax : 7.2 million p.a. Runway A (4,000m) 4 2
Narita Airport - Continued Growth Since Opening Pax (x 10,000), Cargo (Kilotonnes) 4000 3500 3000 2500 2000 1500 1000 Pax (x 10,000) On dom. flights (x 10,000) Cargo (kilotonnes) On intn'l flights (x 10,000) A/c movements (Thous.) 2002 (Interim) Runway B commissioned Sep 2001 US terrorist attacks Mar 2011 Great East Japan Earthquake 2003 Iraq war WHO warns of SARS 2008 Global economic crisis 2012 Emergence of LCCs 250 200 150 100 50 A/c Movements (Thous.) 500 0 0 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 5 Narita's Route Network List of Cities on Narita Airport's Network (Including transit points) Total125cities (108 overseas and 17 in Japan) No. of destinations cities is accurate as of April 2017 Pax numbers on individual routes are outbound in FY2015 6 3
Ratio of International Services Operated by Each Alliance Narita John F. Kennedy Charles de Gaulle Intn'l: 75% Dom: 25% Intn'l: 42% Dom: 58% Intn'l: 90% Dom: 10% Other 22% Star Alliance 34% Other 35% Star Alliance 15% Other 33% Star Alliance 11% oneworld 25% SkyTeam 19% oneworld 22% SkyTeam 28% oneworld 5% SkyTeam 51% Incheon Hong Kong Changi Intn'l: 98% Dom: 2% Intn'l: 100% Dom: 0% Intn'l: 100% Dom: 0% Other 33% oneworld 3% SkyTeam 37% Star Alliance 27% Other 29% Star Alliance 13% oneworld 46% SkyTeam 11% Other 55% Star Alliance 28% oneworld 8% SkyTeam 9% Source: Compiled by NAA from Sabre MI/GDD schedule data for the period 7 to 13 November 2016 7 Growing Ratio of LCC Flights Global LCC Market Share by Region Ratio of LCC Services at Narita Airport Operating LCCs 60% '01 '13 40% 38% 30% Seat-kilometer based ratios for international and domestic routes 58% 34% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Ratio of Passenger Flights 27.8% 25.1% 20.6% FY2014 FY2015 FY2016 20% 0% 18% 5% 16% 9% 16% 0% 0% 3% 0% 3% 0% 11% 30.0% 25.0% 20.0% 15.0% Passenger Ratio 22.3% 17.3% 25.3% 10.0% 5.0% *Source: Ministry of Land, Infrastructure, Transport and Tourism (Compiled by the Basic Policy Committee of the Aviation Section of the Council of Transport Policy) 0.0% FY2014 FY2015 FY2016 8 4
Terminal 3 Terminal 3 Opened 8 April 2015 Terminal Concepts Casual More accessible air travel Functional Simple and easy to use Exciting Relaxation in a comfortable environment 5 Airlines in Terminal 3 Domestic airlines: Jetstar Japan, Spring Japan, Vanilla Air Overseas airlines: Jetstar, Jeju Air (As of April 2017) 9 2. Global Air Transport Demand 10 5
Global Air Passenger Traffic Forecasts (2016-2035) Growth in demand is particularly strong in the Asia-Pacific, Middle East and Latin America regions. The key to growth is finding ways of tapping into the growing demand in Asia. Europe 1,5 98 3,2 99 Annual avg. +3.7% Middle East 594 2,0 82 Asia- Pacific 1,9 94 6,313 Annual avg. +5.9% North America 1,6 03 2,7 62 Annual avg.+2.8% (Units: Billion pax-kilometers) Annual avg. +6.5% Africa 144 370 Worldwide Annual avg. +4.7% Latin America 34 91 7 9 Annual avg.+4.8% Annual avg. +5.0% Source: Compiled from Japan Aircraft Development Corporation and MLIT data 11 3.Becoming an Advanced Tourism Country 12 6
New Government Goals for Becoming an Advanced Tourism Country Tourism Vision to Support the Future of Japan: Key Policies No. of Visitors to Japan 2020: 40 million 2030: 60 million (About double 2015 figures) (About triple 2015 figures) Spending by Visitors to Japan 2020: 8 trillion yen (More than double 2015 figures) 2030: 15 trillion yen (More than quadruple 2015 figures) Larger than the value of Japan's automobile exports (Value of automobile exports in FY2015: 12 trillion yen) 13 4.Further Function Enhancements at Narita Airport 14 7
5.Air Route Network Expansion Initiatives 15 Air Route Network Expansion Initiatives Narita Hub Promotion Incentives (1 April 2015 to 31 March 2018 (3 years)) To develop new networks To boost existing services Int'l International network expansion discount Additional international tonnage discount If both apply, landing charges are discounted up to 100% Dom Domestic network expansion discount Additional domestic tonnage discount If both apply, landing charges are discounted up to 100% 16 8
Narita Airport Marketing Incentives (1 April 2017 to 31 March 2019 (2 years)) With recent improvements in aircraft performance, airlines are rapidly reorganizing their routes and introducing direct flights between Asia and North America. This has resulted in an escalation in competition between airports to obtain routes for their networks. To maintain and increase passenger and cargo traffic at Narita Airport To expand airport retail sales Introducing the Narita Airport Marketing Incentives Based on the number of passengers or volume of cargo, NAA will subsidize part of the expenses for marketing activities (shop sales promotions, etc.) Strengthen Marketing activities by the airlines 17 6.Creating Attractive Retail Spaces 18 9
Airport Retail Revenue and Ratio of Non-Aeronautical Revenue Trends in Duty Free, Merchandise & Food and Beverage Sales at Narita Airport Revenue ( JPY100million) Duty free, merchandise and 1,400 免税店 物販店 飲 店売上 food and beverage revenue No. of pax 1,429 ( 10,000) 1,290 1,400 Greater Ratio of Non- Aeronautical Revenue FY2015 1,200 1,000 800 600 国際線外国 旅客数 No. of international non-jjapanese pax 928 793 807 850 855 824 842 593 757 1,064 924 1,169 (+20%) 1,200 1,000 800 600 Non-aeronautical Revenue 55% Aeronautical Revenue 45% 400 200 0 674 701 765 854 768 701 705 599 679 844 972 400 200 0 Non-aeronautical Revenue 34% FY2004 Aeronautical Revenue 66% 19 Creating Attractive Retail Spaces 301 food & beverage, merchandising and duty free shops opened in total 20 10
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2017/7/14 Terminal 1 Narita Dining Terrace 23 24 12
Arrival Duty Free Shops * Images are illustrations. 25 7.ʼOmotenashiʼ at Narita Airport 26 13
Refurbishment Offers Clean, Comfortable Toilet Areas Recipient of Toilet of the Year Award 27 Narita TraveLounge (Pay Lounge) 28 14
Kabuki Gate (Gallery & Shop) 29 Interior Decorative Exhibitions Express the Traditions and Seasons of Japan 30 15
Promotion of Fast Travel Ongoing Moves to Shorten Processing Times Illustration 1 Easy to understand information displays 2 Self check in kiosks1 3Bag drop kiosks1 4 More advanced, streamlined security screening 1 5 Improved dwell environment before boarding The IATA Fast Lane program recommends the automation of passenger procedures (self-service) and the introduction of common-use facilities. Strategic Targets (by end of fiscal 2018) Usage of procedure automation services 80% or higher Processing time (Departure) Within 10 minutes* * From the departure lobby to the duty-free area 31 Deployment of leading-edge ICT - Smart Airport 1 Introduction of the worldʼs highest standard of free public wireless LAN (WiGig ) 2 Installation of nextgeneration interactive digital signage with capacity for automatic responses in several languages 3 Introduction of advanced autonomous mobile robots with anti-collision functions Surprise and impress passengers 4 Development and introduction of robots that assist in work activities 5 Development of route guide service using precision position finding technology 32 16
8.Anime Tourism 33 Narita Airport is the Gateway ~ The Starting Point for the Anime Pilgrimage ~ ʻSilver Spoonʼ (Obihiro City, Hokkaido) Niigata City Manga House (Niigata City, Niigata) * Images are illustrations. Ishinomori Manga Museum (Ishimaki City, Miyagi) ʻHyoukaʼ(Takaya ma City, Gifu) Aruaru City (Kitakyushu City, Fukuoka) Gosho Aoyama Manga Factory (Hokuei-cho, Tottori ) ʻGIRLS und PANZERʼ (Oarai-machi, Ibaraki) ʻSummer Warsʼ (Ueda City, Nagano) Narita Airport Yanase Takashi Memorial Anpanman Museum (Kami City, Kochi) ʻHand Shakersʼ (Osaka City, Osaka) Kyoto International Manga Museum (Kyoto City, Kyoto) ʻNeon Genesis EVANGELIONʼ series (Hakone-machi, Kanagawa) 39 17
* Images are illustrations. Your Name. LoveLive!Sunshine!! GIRLS und PANZER Hyouka Bungo Stray Dogs Tamayura Neon Genesis EVANGELION Hand Shakers 35 * Images are illustrations. 36 18
* Images are illustrations. 37 19