Abstract

Airport management in Japan must pursue efficiency and transparency. This research focuses on the allocation scheme of aviation fuel tax to local governments as an original revenue source for airports. In view of governance, after reviewing the current practice and issues, we discuss a favourable model for promoting transparency, followed by tracing up the current officially-available figures to find out the allocation amounts for each airport of aviation fuel tax, we conduct trial calculations under several assumptions to reveal how changes to the allocation scheme affect the revenue source proportion for each airport. Based on the results, we conduct another trial calculation of the financial balance for state-owned airports and introduce an airport facility charge to clarify the tax scheme to show options for better airport management in Japan.

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