Japan looking at privatization for airports


Koizumi's popularity has fallen as he pushed reforms, with the privatization plan drawing the ire of Chiba politicians

TOKYO, Japan -- The Japanese government plans to privatize three airports in the 2004 business year.

The Ministry of Land, Infrastructure and Transport has already settled on a privatization plan for the Tokyo, Osaka and Nagoya airports, according to one source.

But the plan has drawn criticism from some analysts. They view it as a scheme to rescue the troubled Osaka airport.

The Tokyo airport, Narita, is based in Chiba prefecture and is ready to expand. But the Osaka hub, Kansai International Airport, has a heavy debt load.

Politicians in Chiba have voiced disapproval of the plan to privatize the Narita airport, fully known as New Tokyo International Airport.

Chubu also on the drawing board

The other airport on the drawing board for privatization is the Chubu International Airport in Nagoya. It is not yet completed but will also compete with Narita for international traffic.

Sources in the transport ministry say that the government will offload its ownership share of the airports after taking them public, according to news agency reports out of Japan, citing the Nihon Keizai Shimbun.

The ministry anticipates setting up a public company to monitor development of the three airports, however.

That company would budget land development and oversea the funding of airport development.

Panel looking at plan

Prime Minister Junichiro Koizumi's administration has targeted numerous state-owned companies in Japan for privatization, notably the post office and home-loan state companies (full story).

The transport ministry pushed forward six of its companies for privatization (full story).

But few deadlines were set for the moves. The transport ministry still has to forward its airport privatization plan to an advisory panel for further inquiry.

The airports in Japan face mounting pressure from air hubs in nearby South Korea and China.