Japan Plans More Overseas Flight Capacity - WSJ.com

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Effort at Haneda Airport May Intensify Alliance Talks at Japan Airlines

By YOSHIO TAKAHASHI By YOSHIO TAKAHASHI

TOKYO—Japan's transport minister outlined moves to open a second airport in the Tokyo area to international traffic, which could intensify airline competition over the skies of Japan.

Such a move comes at a crucial time for Japan Airlines Corp., which is restructuring under government supervision.

Tokyo's Haneda airport now serves mostly domestic flights, while international flights are routed through Narita airport in the Chiba Prefecture, west of Tokyo. A fourth runway being built at Haneda is expected to open up for some international flights.

Seiji Maehara, Japan's minister of transport, said most planes departing from regional airports in Japan now fly abroad via Incheon International Airport in South Korea, a major hub in Asia.

"We need to drastically review this. We have to create a hub airport in Japan, and Haneda would be one at first," Mr. Maehara said.

The fourth runway at Haneda will eventually have a capacity to handle about 110,000 departures and landings. Mr. Maehara said he hoped half will be used for international-flight services.

Domestic flights accounted for 97% of the overall 303,000 departures and landings at Haneda in the fiscal year ended in March, while 93% of Narita's operations were international flights.

Mr. Maehara said plans to restructure JAL are progressing more quickly than expected, though he declined to comment on details. An airline spokeswoman declined to comment.

JAL reported its largest-ever quarterly net loss of 99 billion yen, or about $1.1 billion, in the quarter ended in June, crippled by a sharp decline in global travel. The airline expects a net loss of 63 billion yen for this fiscal year through March.

Among its own revival initiatives, the Tokyo-based company began separate tie-up talks with Delta Air Lines Inc. and American Airlines parent AMR Corp., with the U.S. firms potentially investing in their Japanese peer to enhance their services in Asia.

But the Japanese airline likely won't conclude alliance talks with Delta and American Airlines until a task force finishes a review of its ailing financial structure, people familiar with the matter said earlier this month.