"Japan to privatize 3 airports separately"

Friday, September 27, 2002

Gov't to privatize 3 airports separately
Japan - Kyodo


TOKYO, (Kyodo) - The transport ministry has given up a plan to create a
public entity in charge of the management of Japan's three main
international airports and is prepared to privatize the three airports
separately, ministry officials said Thursday.

The three airports are New Tokyo International Airport at Narita, Kansai
International Airport off Osaka, and the yet to be built Central Japan
International Airport on the outskirts of Nagoya.

Under the initial plan proposed in September last year by the Ministry
of Land, Infrastructure and Transport, the airports were to be
privatized in a consolidated manner -- the launch of a single public
entity to build and service all runways at the three airports and the
establishment of three private firms to separately manage the terminal
buildings.

The proposal, part of the government's reform of special-purpose public
corporations, has been criticized for aiming to rescue the money-losing
Kansai airport with revenues chalked up by the profitable Narita
airport.

Kansai International Airport Co. is saddled with liabilities exceeding 1
trillion yen. The debt would be inherited by an envisaged public entity
under the ministry plan.

The ministry, which has been reviewing the plan, has decided to
separately privatize the three airports and will unveil a new blueprint
in October to a ministry advisory council on transportation policies,
the officials said.

Under the new plan, the New Tokyo International Airport Authority would
be first transformed into a special company partially owned by the
government. The government would sell off its stake later to make it a
100% private firm.

As for Kansai airport, Kansai International Airport Co. would be
privatized but the new firm would be in charge of the management of the
terminal building only. The management of runways and repayment of its
huge debts would be undertaken by a new public entity.

Central Japan International Airport Co., already a stock company, would
continue to manage the airport, set to open in 2005.

The ministry is also considering using revenues from the future sale of
the government's stake in a planned Narita airport company in repaying
Kansai airport's debts, the officials said.


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