Geoeconomics of Air Transport

Preliminary Considerations on the Global and Japan-China Air Supply Chains in 2019 and 2023

Abstract

Analyses on the semiconductor industry, including that of Japan, and the impact of potential crises in Taiwan often focus on individual companies' strengths and government strategies, with little examination of the supply chain, including air transport. This paper aims to explore the potential of analyzing air traffic networks by understanding the extent to which Japan's current air network connects with other countries and airports. To highlight Japan's characteristics, China was chosen as a comparison, and data from before COVID-19 (2019) and after the pandemic (2023) were compared. The analysis revealed the following points:

1. Japan is connected to the world mainly through major airports in the United States and South Korea, and unlike China, Japan does not have a noticeable advantage in terms of global connectivity, suggesting the need for urgent measures.
2. A structural issue in Japan's air network is that it has shrunk by 6% since the pandemic, with Incheon Airport in South Korea becoming the main gateway to the world, while Narita's presence continues to decline. It is necessary to prepare a strategy to enhance the global competitiveness of domestic airports like Narita, considering contingency responses.
3. Japan needs to further align its economic security strategies with its allies and partner countries in Europe and the United States while strengthening its air network. It must strategically select and prioritize connections and usage of domestic airports.