Monday, April 19, 2010

Hollowing of Japan's interior vs. air travel

Although personally I am a proponent of supporting Japanese regional economies, many regional airports and unprofitable air routes to these regional airports should be closed. There is simply not enough demand to support many of these regional flights. Japan Airlines has run these flights for the past twenty years as part of the greater bureaucratic and political horse-trading with regional prefectures. However, the bankruptcy of Japan Airlines most likely signals the end for many of these regional flights, and therefore, the regional airports. On the other hand, Japan Airlines turnaround is still mired with much politics and it is unknown how this re-structuring will end.

On the positive side, Japan boasts a vast and efficiently-run train system throughout the country, which compensates for lack of air demand. Secondly, there is an opportunity for low-cost carriers to emerge, although Skymark Airlines and Air-Do Airlines have struggled to build momentum since their inception.

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