Ground_Support_SeptemberP2019 - 44

GROUND SERVICE
PROVIDERS

next several years.
Implementation of these plans, however,
will also depend on the ability of the state plans
to stimulate competition in the industry, which
is still restricted by the ongoing domination of
the largest domestic players, as well as strict
rules for doing business in the country, not
to mention high tariffs for ground handling
services in the local market.
Swissport's Kaeser also adds the "potential
growth can be constrained by the capabilities
of a tight labor market as well as the infrastructure at airports as they work to find solutions
to deal with the increase in tourists."
Kaeser, however, expresses his hopes that
the current situation in the industry may
improve soon, due to the recent talks between
the Japan Civil Aviation Bureau (JCAB), ground
handlers and airport authorities, "which are
aimed at understanding the challenges and
developing plans for overcoming them."
In the meantime, representatives of Univer-

sal Aviation remain more pessimistic.
"We think the current condition of the Japanese market of ground handling services is
still in the early stage of development," says
Shinsuke Honda, manager, strategic and marketing for Universal Aviation Japan.
"As there will be some international events
like the Imperial Enthronement Ceremony
(October 2019) and the 2020 Olympics Games
and the strong backing of the Japanese state, we
predict it will grow in near future."
In regard to local airports, their market
share in the field of ground handling remains
insignificant, as the majority of them have
never been actively involved in the provision
of such services in the past.
Despite the ongoing domination of
both Japan Airlines and All Nippon
Airways in the local market, many
local analysts believe their activities
are not associated with any threats of
monopolization. This is mainly due

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44 GROUND SUPPORT WORLDWIDE

SEPTEMBER 2019

to the fact that the number of ground handlers operating in almost each large airport of
Japan, is usually varied in the range of four to
five companies. The list of major independent
ground handling providers includes Showtoku
Corporation, Japan Airport Service Corporation, Kansai Air Cargo Center, Haneda Air
Ground Handling and some others.
According to analysts, the problem of
monopolization remains more pressing for
some smaller airports of the country, as the
level of competition in their ground handling
sectors often remains low. Currently Japan has
76 airports with domestic service, including 29
airports with international service.

ABOUT THE AUTHOR:

Eugene Gerden is an international freelance writer, who specializes in covering
the global aviation and ground handling
industries. He has worked for several
industry titles and can be reached at
gerden.eug@gmail.com.
http://www.weg.net http://www.AviationPros.com/21080084
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