Kansai prepares for better days

17-Jul-2003

The airport's landlord believes the 42% passenger traffic drop in June is as bad as it will get

Airport operator Kansai International Airport Co (KIAC) has expressed confidence that the decline in duty-free sales caused by the Iraq war and SARS outbreak has bottomed out at Osaka Kansai, Japan's second biggest airport. In June, the year-on-year decrease stood at 42%, the worst recorded fall since the beginning of the year. But KIAC director duty-free business division Takao Matsunami told TRW he expected rapid recovery from this month as the Japanese airline business returns to normal.

"Up to July 15, this month's sales were 33% down on last year, but we are anticipating rapid improvement and expect total July sales to be about 20% down year-on-year," he said. "Many flights that had been withdrawn are now being reinstated, although Japan Airlines has said it will take more time for a full recovery to take place." As a result of the leading carrier's troubles, retailers in Kansai's South Wing?heavily reliant on JAL passengers?are expecting a slower recovery than those in the North Wing.

The SARS-related downturn has not prevented KIAC from going ahead with its plans to create more brand boutiques at the airport, first revealed in DFNI July 1 2002. Matsunami said the plans had been approved and finalised, and added the authority was now in discussions with Kansai operators to decide who would operate the new boutiques.

In addition to creating new space, KIAC also plans to renovate its duty-free store in the South Wing, operated in partnership with JATCo. The refurbishment, due to begin in December, will involve the removal of larger brand showcases and the installation of smaller displays, allowing customers more space to browse and find their preferred brands.

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(3-May-2003) - JAPAN. The plan to create new retail space at Japan?s second biggest airport Osaka Kansai is to go ahead despite a severe drop in traffic at the location.
(6-Nov-2002) - JAPAN. The annual review of Osaka Kansai International airport?s duty-free business has revealed the impact of intensified competition from Tokyo Narita and the continuing economic downturn on retail sales at Japan?s second biggest airport. A dip in passenger numbers since April?when a second runway was added at Narita, increasing capacity and attracting travellers away from Kansai?resulted in a disappointing summer for retail at Osaka.
(15-Oct-2005) - JAPAN. Airport authority and retailer Kansai International Airport Co (KIAC) is in discussions to add 2,000sq m (21,520sq ft) of retail space in the central airside area of Osaka Kansai airport