Man on a mission

Written by Geoff Tudor Monday, 18 August 2008 09:22

Tokyo Narita CEO, Kosaburo Morinaka, talks to Geoff Tudor about his development plans for Japan’s international gateway to the world.

Kosaburo Morinaka, president and CEO of Tokyo’s Narita Airport since June 2007, is a man of decision and action.

A few month ago, prompted by an article critical of his airport written by a Tokyo-based British journalist in a Japanese magazine, he contacted the writer directly and visited him in his office in central Tokyo.

Fearful of an unpleasant confrontation at the meeting, the NAA staff accompanying their new boss need not have worried. Morinaka simply wanted the writer, who had complained about Narita’s distance and access from downtown Tokyo, to learn that the airport authority was hard at work on improvements to make the gateway more user-friendly, such as the new high-speed rail link opening in 2010.

He achieved his goal and the atmosphere at the 30-minute meeting was described as “positively congenial”.

Such a visit by an airport boss would be considered unusual anywhere in the world, and in Japan it was exceptional. But it is a good illustration of Morinaka’s individual management style and how he is trying to motivate staff and change the corporate culture at Japan’s biggest international air gateway.

In May this year Narita commemorated 30 years of operations. A month later Morinaka completed his first year as the airport’s president and CEO. By his own account his first year has been a busy one.

“Up to joining NAA, I had been involved in the private sector in the Sumitomo Trading group for 40 years, specialising in basic infrastructure business such as construction and management of power generating plants and desalination plants. The air transport business is another world and the first 12 months went by very quickly,” admits Morinaka.

“However, I have used the airport more than 1,000 times in the past 30 years and that experience has been very useful to me in my new career, although managing the airport needs a totally different perspective.

“Narita has always been an exciting place for me as a traveller and still is, even though I now manage the place. The experience is uplifting. I’m enjoying it,” says Morinaka, his jovial features emphasising his enthusiasm for a job he obviously relishes.

From power plants to airports may seem a big change, but Morinaka doesn’t think so. “Power plants and airports are simple in concept but are actually immensely complex entities needing highly skilled operational managements,” he explains.

“They are both long-term projects not only in the construction phase but also in subsequent operation. And both airport and power plant managements must be environmentally aware and community-friendly.”

The fact that Morinaka was brought in from the private sector seems to demonstrate that there is a certain degree of pressure to open up Japan’s aviation policy.

“As an island country, Japan cannot open up so easily, but I would like to find out what the basic problems are in aviation policy and tackle them as they occur and affect Narita,” he says.

“And I would like also to explore what I can do to co-operate and work together with other airports in the world, especially in the Asia-Pacific region, and with the global network of airlines.”

Asked if he had any preconceptions about the airport business that he has now revised, he points out that the role of Tokyo Narita as a major gateway to Japan has not altered significantly although there are policy changes in the wind.

Says Morinaka: “Since I joined NAA, the general climate surrounding Japan’s national aviation policy has changed, as what is known as the ‘Asia Gateway Plan’ has come into focus. Accordingly, what used to be Japan’s basic airport policy, that Narita should remain the nation’s main international airport, has converged into a ‘metropolitan’ airport plan for the Tokyo region and a form of integration concept for Narita and Haneda.

“In 2010 we will complete the extension of Narita’s second runway, allowing 20,000 more annual slots. At about the same time Haneda’s expansion will be finished enabling 122,000 additional annual slots there, of which up to half could be used for international flights.

“Haneda is facing the probability of fewer domestic passengers in future as the national high-speed train system is extended and becomes increasingly competitive with medium- to long-haul domestic flights. This helps to make a case for increasing international flights there, to use that capacity.”

Indeed Morinaka believes that a “limited number” of international flights could be operated out of Haneda to short- to medium-range destinations in north-east Asia.

He admits that this would even be good for some locals, especially those living in the area south-west of Tokyo, but he is absolutely adamant that this should not involve competing with Narita.

“Narita and Haneda should complement each other with the majority of international flights remaining at Narita,” states Morinaka. “Competing directly against each for business makes no sense.”

Morinaka is, however, modest when pressed for what he hopes to achieve at Narita in future.

“My main concern is how we at NAA can deliver good results and good feelings to our stakeholders, that is our passengers, local communities, employees, airlines and shippers. If we can achieve that, then it follows that our efforts will be seen as good for the country and good for the people in the Narita region.”

On changing the corporate culture of the NAA, Morinaka has made some progress, say colleagues and observers.

“I started off with the intention of continuing with my own original private sector management style and I came up against a brick wall,” admits Morinaka.

“In Sumitomo I had built up a team over nearly 40 years and I knew every detail myself. Narita was built up under the control and management of the Ministry of Transport (now MLITT) and a bureaucratic system, whether good or bad, was well established. What I am thinking now is to use the good points of both systems, to make NAA a more socially acceptable organisation.”

Throughout Narita’s history, he points out, the environment was always a critical issue – it was an important premise to maintain workable relationships with local communities.

“We call ourselves a ‘green airport’ that means we are an environment conscious airport and at the same time we are conscious of the farmers who are living around us,” says Morinaka. “We made public a declaration in 1998 to become an ‘eco airport’ and I am confident that Narita is one of the leading airports in the world from an environment viewpoint.

“For example, back in 2005, we established a noise-based landing charges structure. This is just one example of our environmental initiatives and was basically designed to benefit all parties concerned – airlines, passengers and local communities.

“The principle is that quieter aircraft pay less and as a result noise reduction has progressed and of course together with the current fuel prices crisis, airlines have pressed forward with downsizing aircraft. As a result, landing fee revenue has decreased, but I think this charges system is good for everyone, especially for the local residents.”

The sensitive relationship with the local community has been a fundamental element in the NAA story. Morinaka thinks that the relationship today has never been better.

“Community relations are currently very good and have been for the last five or six years,” he enthuses. “Before dialogue between the airport and the communities got started in the 1990s, the NAA was quite at odds with the local community. But since the dialogue started, both sides have benefited and steadily contact and communication has improved.”

As an example of the good relationship, earlier this year NAA issued a statement to explain that movements at Narita could be increased by 50% – from the present 200,000 to 300,000 – within current operating hours.

The increase was not dependent on technical issues alone, such as air traffic management (ATM) improvements and new taxiways, but crucially needed the agreement of the local communities and residents.

The statement came in response to enquiries by a group of local leaders from the nine townships neighbouring the airport. These leaders have formed a council to inject growth and prosperity in the local communities in conjunction with the growth of Narita in the global air transport network. It illustrates how the relationship has moved forward.

“We have tried to compromise as much as we can and our efforts have been accepted and appreciated. Now more than 99% of the local community are very friendly to and supportive of us,” he says proudly.

“They want us to succeed in increasing aircraft movements and improving convenience and in developing our business in future, because we are such a key part of the local economy. But there are still some who oppose us. We must continue with our efforts to communicate.”

One of the main tasks that Morinaka was expecting to handle soon after taking the helm was the Narita initial public offering (IPO). The NAA was privatised four years ago, but the government holds all the shares and, due to other political issues, the IPO has been put on the back burner and could take place in late 2009 or even 2010, depending on legislation.

“I have told our team to make the necessary plans and preparations so we can go ahead as soon as the government decides,” reveals Morinaka.

In June, the aviation fuel price crisis prompted IATA to write to individual airports requesting cooperation in tackling the issue. Morinaka, elected to the Asia-Pacific board of ACI earlier this year, is sympathetic, to a degree.

Says Morinaka: “As a player in the air transport industry I realise that airlines are suffering from the severe impact of the fuel price increase. But I just want to reiterate that airports are affected just as badly by higher fuel costs and at the same time by downward fluctuations in passenger and cargo demand, which result from economic, political and security inspired instability.

“These factors have a very negative impact on airport revenues and profits. I do understand the sentiment of the airlines and offer my sincere sympathy. But if they ask for one-sided relief, that may be a little off the point.

“From now, I believe, each individual airport will try to have discussions with the airlines concerned and will try to find a suitable solution.”

Morinaka for one admits that he is looking forward to a “sincere discussion” with Narita’s airline customers when NAA begins its own consultation process on landing fees later this year.

I wonder if the airlines are looking forward to the discussions with such enthusiasm?

Asia-Pacific Airports 2008 Issue 2

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