Japan’s Domestic Airlines Get Approval to Coordinate Domestic Flight Schedules

The Yomiuri Shimbun

Domestic airlines will be allowed to coordinate their domestic flight schedules with each other to increase the passenger load factor of each flight and maintain unprofitable routes by adjusting flight times.

The Land, Infrastructure, Transport and Tourism Ministry announced its approval at a meeting of a panel of experts on Friday after taking into account the views of the Japan Fair Trade Commission.

Domestic airlines currently create their schedules independently due to concerns about violating the antitrust law. As a result, airlines are forced to compete, as they operate the same routes at the same times. But many domestic routes are not profitable.

To prevent a decrease in available flights, airlines will be required to maintain their number of flights while coordinating their schedules based on agreement.

The JFTC will monitor whether any airline makes excessive profit and provide guidance if violations are found.

By adjusting flight times, the ministry aims to help maintain routes to and from regional areas and remote islands. Regional routes already only have a few flights, concentrated in the mornings and evenings to accommodate tourists and those traveling for work.

It may prove to be more convenient for travelers if airlines had more flights during the day, when there tends to be fewer flights. In addition, airlines are expected to make more profit if the passenger load factor of each flight increases.

The ministry gave its approval due to rising labor and maintenance costs affecting the profitability of domestic routes.

According to the ministry, the domestic operations of Japan’s six major airlines collectively posted a net loss in operating profit, which reflects the earnings of the company’s core business, for fiscal 2024, excluding such public assistance as a reduction in airport fees.

The ministry established the expert panel in May to discuss the necessary measures to maintain the domestic flight network.