Tokyo Narita Airport launch low-cost terminal in response to influx

Narita International Airport, NAA, in Japan, has confirmed that by the 8th of April 2015 – they will open their new low-cost airline terminal, in order to cope with the rapidly increasing number of low-cost carriers (LCCs) serving Tokyo Nartia.

The new terminal will be 66, 000 sq m, have a capacity for 7.5 million passengers a year and will cost an estimated 13 billion yen to build. The company’s President, Makoto Natsume said, ‘the new terminal will further expand the scope of options for users and make Narita airport more convenient.’

The terminal has been designed to accommodate low-cost airlines, and therefore limits the fees that they would normally have to pay. The development highlights the rapid influx within the Asian low-cost carrier market, which has taken dominant place in the last few years.

A recent report, released by the Centre for Asia Pacific Aviation,  revealed that in the space of just ten years, the low cost carrier’s share of the Asian region had soared from almost nothing to 58 per cent.

Social changes within Asia, particularly China and India, has meant that their will be a significant rise of the middle class. Forecasts suggest, that by 2030, Asia will be the home of 3 billion middle class people, which would be ten times more than North America, and five times that of Europe. This growth of wealth, will have a profound affect on the Asian aviation market, as the increase in wealth will allow people to become more mobile. Boeing recently announced that by 2032, almost half of the growth in airline passenger traffic will be attributable to transportation to, from, or within the Asia-Pacific region.

Questions will now focus on how low cost carriers will be able differentiate themselves in an industry which is becoming increasingly saturated. Is it going to remain a game of price? Or perhaps, they will have to focus their dedication on branding a better customer experience.

Join us at the World Low Cost Airlines Congress, Aviation Asia, to discuss the future of the low cost model.

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