IATA calls on Japan to boost aviation competition
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The International Air Transport Association (IATA) called on the Japanese government to establish aviation policies that will strengthen the sector and contribute to a more competitive Japan.
“A national aviation policy focused on competitiveness could play a big role in recovering lost economic ground,” said Giovanni Bisignani, IATA’s Director General and CEO in an address to the Foreign Correspondents’ Club of Japan. He urged Japan to develop a more effective airport policy in Tokyo, a level playing field with more open markets for airlines to compete, and an approach to climate change commitments that includes sustainable biofuels.
“China’s growth is creating business opportunities and changing the competitive topography of the world,” said Bisignani. The 617 weekly frequencies between Japan and China show the depth of the Japan-China relationship. China is Japan’s biggest trading partner and its most important international destination. “The competitive challenges are enormous. Japanese labor costs are ten times those of China. Measured by purchasing power parity, the yen is 25% overvalued while the yuan is 70%undervalued. High productivity, high value-added international industries dependent on a competitive and healthy air transport sector has been the answer. Economic success means that Japan must squeeze every iota of competitiveness and innovation possible out of its economy
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