Aviation Market Analysis

Japan International Transport Institute Impact Study

Posted on Nov 12th, 2015

The Japan International Transport Institute, USA (JITI), is an independent research institute that studies US-Japan and international transportation issues. TWG has provided research and analytics consulting support to JITI for more than a dozen years, including conducting comprehensive analyses and studies, participating in or moderating industry study group meetings sponsored by JITI, and preparing materials for or participating in industry conferences or seminars hosted by JITI in Washington and Tokyo. Recent studies have covered the growth and impact of the regional airline industry, strategies for maximizing the potential of multiple-airport markets, trends in airline alliances, antitrust immunity in airline mergers, and the impact of Open Skies Agreements on the US-Europe and US-Japan markets.

An example of TWG’s research and analytics work for JITI is a study of the Low Cost Carrier (LCC) sector in the US. The assignment included reviewing the key prior studies conducted on the development, history and impact of LCCs, and then designing and conducting a new, unique and comprehensive study of the impact of LCCs on 344 US. commercial-service airports over a 30-year period. TWG looked in detail at the impact on traffic and service patterns as the LCC sector matured, and analyzed the effects on both aeronautical and non-aeronautical revenues at airports of different sizes and varying service profiles. TWG also assessed how LCCs change their service patterns over time, and how airports tend to respond to such changes. This study highlighted implications for both airlines and airports where LCCs serve, and offereds insight into how the LCC sector’s development might proceed in Japan, given its history elsewhere. The work culminated in JITI hosting a major aviation seminar on the topic.