Japan: Sendai Airport set to be privatised on Friday

Sendai Airport in Miyagi Prefecture is set to be privatised on Friday. It will be the first among state-managed airports in the country that switches to private-sector operations. Sendai International Airport Co. will operate the airport located between the cities of Natori and Iwanuma under the contract of up to 65 years. The company was set up jointly by railway operator Tokyu Corp., construction company Maeda Corp., trading house Toyota Tsusho Corp. and three other firms. The airport operator aims to attract foreign visitors partly by expanding international flights through such measures as reducing landing fees and setting up new boarding facilities. Inbound demand is increasing in many parts of Japan, but is not so robust in the Tohoku northeastern region including Miyagi. The amount of international passenger traffic at Sendai Airport in fiscal 2015, which ended in March, fell 5% from the previous year to some 160,000, due to the suspension of some routes, according to a preliminary report. Still, the number of foreigners who stayed overnight or longer in the six prefectures in Tohoku last year surged 44% from 2014 to 510,000, rising back above levels before the March 2011 earthquake and tsunami that hit the region, according to the Japan Tourism Agency. In 2010, the number of such foreigners totaled 500,000.<br/>