JAPAN. Narita International Airport Corporation (NAA) is committing to an ambitious programme of improvements in commercial services as it pursues rapid revenue growth.
As reported in The Moodie Davitt Report May 2016 print edition, NAA is targeting duty free, speciality retail and food & beverage revenues of JPY150 billion (US$1.36 billion) by fiscal 2018.
NAA’s Mid-Term Management Plan outlines the policy of opening shops “with innovation and contemporary flair, and shops that project the distinctive character of Japan and Narita Airport” to help achieve its financial target.
NAA is seeking to match product selection to customer wants, and include products exclusive to the airport.
Current commercial projects include the expansion of Terminal 2’s Narita 5th Avenue precinct, and renovation of the landside food court on the fourth floor of Terminal 1.
After fiscal 2016 the developmental focus will be on new airside shops, mainly on T1’s third floor, and continued renovation of T2’s landside Airport Mall.
The Mid-Term Management Plan sets out the goal of providing attractive retail spaces and enhancing the pre-boarding experience so passengers can make more enjoyable and meaningful use of their time at the airport.
NAA aims to improve Departures processing time to enable passengers to reach duty free shops area within ten minutes.
The plan anticipates a more competitive environment for air services in Asia, alongside strong growth in international passenger traffic to Japan.
As reported, in April NAA was on track for JPY116.6 billion (US$1.08 billion) in retail and food & beverage sales for FY2015 – up approximately +20% from the previous year.
Narita International Airport: Strategic targets (in fiscal 2018)
Revenue from airport duty-free shops, merchandise outlets and restaurants: JPY150 billion
Financial Targets (in fiscal 2018)
- Consolidated operating profit: JPY49 billion or higher
- Consolidated return on assets: 5.5% or higher
- Consolidated long-term debt: Low JPY450 billion
- Ratio of consolidated long-term debt balance to consolidated operating cash flow: 6.2 or less
Source: NAA
