IATA chief: Japan should enhance domestic air freight to increase GDP

INTERNATIONAL Air Transport Association (IATA) chief Tony Tyler, former CEO of Hong Kong's Cathay Pacific, has told Japan that it would be best advised to develop its domestic air transport sector to boost the nation's economy.

Mr Tyler said the local aviation market makes up the world's third largest domestic market, taking 11 per cent of global industry revenues and 5.5 per cent of global traffic.

Furthermore, the industry also contributes JPY3.135 trillion (US$40.27 billion) to Japanese GDP, he said, citing an Oxford Economics study.

Said Mr Tyler: "There is no clearer example of the aviation industry being a catalyst for economic growth than in Japan where it provides vital, irreplaceable links to global markets."

Mr Tyler suggested that Japan could help increase its competitiveness through facilitating its cost efficiency, reducing its current high-cost infrastructure.

"Cost-efficient infrastructure will be an even more important driver of the success of the many point-to-point airlines that it is trying to attract than it is for the network carriers," he added.