With the opening of the new Kobe airport Thursday, air carriers are set to wage a battle against railways, especially for business travelers, between Tokyo and Kobe.
The new airport, the third in the Kansai region after Itami and Kansai International, is on a man-made island off Kobe, easily accessible from the center of the city -- as fast as 16 minutes by Kobe Portliner trains.
Startup carrier Skymark Airlines Co., which is banking on the new airport, shocked the industry when it announced a regular low fare of 10,000 yen one way, including airport facility fees, between Tokyo's Haneda and Kobe.
"Taking into account the competition with bullet trains, we would like to continue offering this price for the first year after the opening," Skymark President Shinichi Nishikubo said in November.
The current regular fare on Japan Railway's Nozomi bullet trains linking Tokyo and Kobe stands at 14,670 yen.
Nishikubo reckoned that given the advantage of the new airport's location coupled with a population of more than 1.5 million in the Kobe area, there should be sufficient demand to turn a profit.
Japan Airlines Corp. and All Nippon Airways Co. are offering special introductory rates in some circumstances for the Tokyo-Kobe route, ranging from 10,700 yen to 13,700 yen for March. The two established airlines' regular prices for the month are set at 19,200 yen to 21,200 yen.
Experts say the airport poses a very real threat to Central Japan Railway Co. (JR Tokai) and West Japan Railway Co. (JR West), which run bullet trains between Kobe and Tokyo.
"If the air carriers offer cheap rates and convenient timetables, I think there is a big chance that bullet train users will switch to airlines," aviation analyst Kazuki Sugiura said.
He said the number of flights at Kobe is surprisingly large for a regional airport: The three airlines will operate a combined 27 daily round-trip flights through Kobe, with 11 of them flying to and from the nation's capital.
Skymark will operate seven daily round-trip flights between Tokyo and Kobe, while JAL and ANA will have two flights each. The earliest flight from Kobe to Tokyo leaves at 7:05 a.m. and the last one at 9 p.m. Passengers can catch a flight leaving Tokyo for Kobe at 6:45 a.m. at the earliest and 8:10 p.m. at the latest.
"Many passengers in a hurry may prefer airlines over bullet trains, which take nearly three hours from Tokyo to Shin-Kobe Station," Sugiura said, while by air it will take only 75 minutes from Haneda to Kobe.
Companies based or with facilities in Kobe have high expectations for the new airport.
Kobe Steel Ltd., which is headquartered in both Kobe and Tokyo, recently lifted its internal regulation to use only bullet trains and will now allow employees to take to the air for business trips to Tokyo.
"Besides the head office, we have several manufacturing facilities in Kobe, and the opening of the new airport will definitely be convenient for us," Kobe Steel spokesman Hiroyuki Yabuki said.
The firm purchases about 1,100 bullet-train tickets a month for business trips between Tokyo and the Kansai region, Yabuki said, adding that for a company like Kobe Steel, which has many frequent travelers between the two locations, Skymark's 10,000 yen ticket is looking very attractive.
Isamu Kurosaki, honorary German consul general of Kobe and a frequent business traveler to Tokyo, said he plans to switch from rail to air.
"It's only about 30 minutes from where I live, near Rokko Station, to the new Kobe airport. So I plan to use the Kobe-Haneda route as long as it is convenient," Kurosaki said. "At the moment, it is also cheaper than the shinkansen."
To counter airlines offering cheaper and faster travel, JR Tokai and JR West reduced reserved-seat fares for Nozomi bullet trains between Tokyo and Shin-Kobe stations by as much as 16 percent, charging 12,300 yen one way. The cut is only for frequent travelers who are on a membership program.
The two railways are also adjusting their timetables, gradually increasing the number of Nozomi runs on the Tokaido and Sanyo Shinkansen lines. Last March, the number of Nozomi runs between Tokyo and Shin-Kobe stations was raised to 90 a day from 76.
Both are planning to increase the number to 93 beginning in March. In addition, the timetable adjustment in March will enable the earliest Nozomi to arrive at Tokyo from Shin-Kobe at 9:06 a.m., 24 minutes earlier than the current timetable. Meanwhile, the last Nozomi will leave Tokyo for Shin-Kobe 22 minutes later, at 9:03 p.m.
Industry officials and watchers say some hurdles must be cleared if Kobe airport is to expand.
Classified as a regional airport and having a single 2,500-meter runway, it is only allowed to handle domestic flights, and the Land, Infrastructure and Transport Ministry is limiting flights to 30 a day for safety reasons -- its proximity to the two other airports could make for some crowded skies. In addition, the airport can only be used from 7 a.m. to 10 p.m.
"If the airport could be open from 6 a.m. to 11 p.m., we would be able to respond better to the needs of (business passengers) because we believe there is strong demand for late-night flights," said ANA spokesman Fumiyoshi Fukumori.
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