Regulatory Developments A range of issues and factors accounts for the slow development of business aviation in Japan. These include restrictive Extended-range Twin-engine Operational Performance Standards (ETOPS) requirements, a lack of suitable airports and infrastructure, difficulties in obtaining slots for landing at Haneda and Narita (Narita has just 5 slots a day allocated for business aviation), high landing fees and navigation costs, the lack of FBOs (Fixed Base Operators), and a lack of understanding within businesses and the government about the efficiency gains that can be achieved by using private aviation. Nevertheless, general interest in business aviation is gradually increasing in Japan. Discussions on deregulation with the Japan Civil Aviation Bureau (JCAB) of MLIT are ongoing in the areas of operating certificates, continued airworthiness certificates, airport slot allocations, and landing and navigation fees. Although the problems faced by the industry are generally understood, progress is very slow and in some cases the business environment is deteriorating. The lack of a prosperous business aviation industry puts Japan at a relative disadvantage in relation to other global financial centres. A more prominent business aviation industry would not only generate considerable revenue opportunities within Japan, but also make Japan much more accessible to foreign businesses and governments. Given the nature of the firms using corporate jets, Japan could be losing a major business opportunity every time a decision is made not to fly to Japan because of Japanese flight restrictions. More importantly, the relatively small business aviation industry also translates into a disadvantage for any global business based in Japan. Furthermore, Japanese corporations cannot use private jets for their operations to the same degree as their overseas competitors. Prospects for EU-Japan Economic Integration The business aviation industry is experiencing growth worldwide and forecasts indicate that the demand for business aircrafts will continue to rise. With new airline safety and security requirements in place at all international airports, many business people and governments are chartering aircrafts or considering buying a corporate jet to increase the efficiency of their respective operations. Nevertheless, there are relatively few business aircrafts in Japan considering Japan's position in the global economy. In 2005, close to 1000 flights were registered in Japan, 30% of which came from the USA, 30% from China, 10% from Europe, and the rest from other countries in Asia, while only 38 flights were operated by Japanese registered aircraft. Priorities:
Key Issues and Recommendations ■ Creation of a regulatory framework for business aviation Yearly status report: limited progress. Japan does not have a regulatory framework specific to business aviation and on-demand charter flights. Instead, rules and standards for scheduled airlines are applied, without consideration of the special nature of the business. The application of complicated and strict rules created for operations involving several hundred passengers to operations requiring high flexibility is excessive and effectively hinders the development of business aviation in Japan. Japanese operational requirements for charter operators follow Federal Aviation Regulations (FAR) Part 121, rather than FAR Part 135, even though the latter standard was developed and is used for chartered and private flights globally. The Japanese situation is unique in that Extended-range Twin-engine Operational Performance Standards (ETOPS) requirements are applied to privately owned jets. This results in Japan-registered airplanes having to make detours while others can fly direct. Such excessive regulations force Japan-based operators to fly their aircraft under foreign registrations. Recommendation:
■ Infrastructure for business aviation Yearly status report: no progress. The requirements of business aviation are different from those of other airlines. VIP clearance, direct access to the aircraft, separate customs and immigration counters, fixed-base operators, and the availability of hangars are just a few of the factors that contribute to the efficiency of business aviation. These requirements are commonly met around the globe, but are not available in Japan. Recommendation:
■ Maintenance and airworthiness Yearly status report: limited progress. Certificates of airworthiness need to be renewed every year in Japan, irrespective of the number of hours flown, requiring a plane to be on the ground for about a month every year at high cost. Other countries have established programmes with aircraft manufacturers and are using progressive inspection schedules, which guarantee that the aircraft is always airworthy and not grounded for a "one-month" inspection. Such progressive inspections are tied to hours flown and ensure that aircrafts are repaired when necessary. Furthermore, Japanese maintenance requirements are out of line with international practice, exemplified in the type-certified mechanics system. Moreover, replacement parts have to be pre-certified making maintenance very slow, especially overseas, where Japanese certified parts are not accessible. Unnecessarily rigorous and Japan-specific regulations increase costs to such an extent that it makes little economic sense to own a business aircraft in Japan. Recommendation:
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