Elimination of double- and triple-track standards
The standards used for introducing the double- and triple-track system have been gradually lowered since the system's introduction to promote domestic air competition and increase benefits to consumers. The standards as of 1986 were 700,000 passengers per annum for double-tracks and 1 million passengers per annum for triple-tracks. The first review was conducted in 1992. In 1996, when the airfare band system was introduced to ease airfare regulation, the requirement for double-tracking was lowered to 200,000 passengers per annum, and triple-tracking to 350,000 passengers per annum. Amidst intensifying calls for deregulation, including the elimination of the supply-demand adjustment regulation, the double- and triple-track standards were removed completely in April 1997. This has allowed all air carriers, including newcomers to the industry, to service any domestic routes in principle.
Elimination of the supply-demand adjustment regulation for domestic air service
In December 1996, the Ministry of Transport decided to abolish the supply-demand adjustment regulations in any transport industries until 1999. The objective was to promote industry competition, which should lead to the development of cheaper, affordable and diversified services and the construction of a more transparent industry structure. The supply-demand adjustment regulation for domestic air services was originally introduced under the Civil Aeronautics Law to regulate the supply of transportation capacity to the level of market demand and prevent excessive competition. The abolition of this regulation will bring several changes to aviation administration. The requirement to obtain a license to operate each route will be replaced by the system requiring authorisation for each business; airfares will also be liberalised. In preparing to eliminate the supply-demand adjustment regulation, the Council for Transport Policy and other committees are studying related issues, including how to maintain air service to remote islands and the rules for distributing departure / arrival slots at congested airports. The civil Aeronautics Law Amendment of 1999 will be enforced in February 2000.
