The airline industry in Japan is characterized by a steady duopoly with All Nippon Airways (ANA) and Japan Airlines (JAL). In addition, the sector is registering a strong development of the low-cost carrier (LCC) sector which focuses on the cities of Osaka, Fukuoka, Sapporo and Naha. Mainly with the 2020 Tokyo Olympic and Paralympic Games being planned in this country, the budget carrier businesses are projected to be thriving here in the future.
In this article, our company formation consultants in Japan cover a few aspects related to opening a business in the aviation industry in Japan.
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Obtaining the aviation operating license in Japan
According to the Civil Aeronautics Act, the aviation transport business represents the activity of transporting individuals or cargo by aircrafts against a fee.
To open an aviation transport business in Japan, a permit from the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) is required.
The application for this type of permit has to declare the applicant’s name and address, its representative director’s name, the items which will be transported by aircraft, the maintenance, as well as the all the details and entire amount connected to the funding and financing of the business.
Next, the MLIT will research if the business plan is appropriate to satisfy the public safety, if the applicant is competent to manage an aviation transport business and if the applicant might be disqualified because of certain reasons listed in the Civil Aeronautics Act.
This type of business is not available for foreign companies and individuals. Our company registration advisors in Japan can offer more details related to this matter. We also provide assistance in setting up a company in this industry in Japan.
There is a certain application fee and the usual processing period is of two months after the MLIT has obtained all the required documents.
How can a foreign entity open an aviation business in Japan?
A foreign company or individual can open an aviation business in Japan by obtaining the permission from MLIT to undertake an international aviation transport business in this country.
A foreign company or individual who invests in Japan must do so in accordance with the Act of Foreign Exchange and Foreign Trade. Our Japan company formation agents can offer more information on this legislation.
According to this law, a foreign company which intends to invest in manufacturing of aircrafts, effectuating air transport or utilizing aircrafts, has to give prior notification to the Ministry of Finance and the ministry which has jurisdiction over that specific activity – in this case, the MLIT.
In case you have further questions about the aviation transport business in Japan, or for help in starting a company in Japan, please feel free to contact us.