Here are two news items. The first is from Nikkei, reporting on the fiscal year 2012 financial results for 27 airports managed by the Japanese government.

24 airports, or 90% of the total, posted an operating loss, increasing by one compared to the previous year. The total deficit was 39 billion yen (approximately 390 million USD), an 8% reduction from the previous year. While revenue from landing fees increased due to the growth of LCCs (Low-Cost Carriers), costs rose by 9% due to factors such as restoration work at Sendai Airport following the 2011 Great East Japan Earthquake.

Among the 24 airports, Haneda recorded the largest deficit of 17.9 billion yen, primarily due to interest on loans for airport expansion. Additionally, the main reasons for the deficits at Naha Airport (5.8 billion yen) and Fukuoka Airport (3.6 billion yen) were lease payments for private land. However, looking at profitability indicators excluding depreciation and interest, Haneda posted a surplus of 66.6 billion yen, and Sapporo’s New Chitose Airport also posted a surplus of 11.1 billion yen.

The other item comes from Mainichi Shimbun via Yahoo Japan, reporting that the Japanese government plans to lease operating rights for Kansai and Itami airports to private companies through an open tender.

Details of the plan involve selling the operating rights for both airports for a period of 45 years starting from January 2016, for an annual fee of 49 billion yen and a total price of 2.2 trillion yen. Since the two airports currently hold a debt of 1.3 trillion yen, the government stands to gain 900 billion yen. The issue with Kansai Airport, which began operations in 1994, stems primarily from massive loans taken out for land reclamation; interest payments alone remain a massive burden on operations. Citing the British experience of leasing airport operating rights, the Japanese government has decided to implement a similar plan for Kansai and Itami airports.