Japan's wasteful infrastructure spending

Ibraki airport

Just days after we reported how Japan Airlines are struggling with bankruptcy and increases in losses, comes the news that the country has opened its 98th airport... however it only offers one flight a day.

The Ibaraki airport cost $220 million to build and due to its 'limited' services, it has been blasted as a massive waste of public expenditure, especially as it's 50 miles north of Tokyo. It was conceived as a hub for budget carriers but cutbacks worldwide meant that the airport was practically deserted on its first day.

It's only service was a flight to South Korea, however a flight to the city of Kobe is expect to begin next month

Wasteful expenditure

In order to cope with the global recession, Japan has thrown itself into infrastructure spending in order to keep the economy afloat. Unfortunately this has seen a host of pointless constructions such as bridges that lead nowhere, "unneeded dams" and the airport.

Ironically the new government came to power last year after criticising links between the previous conservative administrations and the construction industry, as well as promising to cut wasteful spending.

The main question is where are they getting the money from? Japan Airlines lost US$1.99 billion (177.9 billion yen) in the last nine months of 2009, an increase from the 1.9 billion yen lost a year earlier, forcing the company to cut back on routes. So why open new airports if there no plans to land there?

The only two carriers reported to be operating from the airport are Asiana Airlines Inc., South Korea’s second-largest carrier, and Skymark Airlines Inc, but with Ibaraki being home to over 3 million people, why aren't the nation's two largest carriers operating out of the site?

As of today, there are no plans for Japan Airlines Corp. and All Nippon Airways Co. to use the new airport.

Relevant articles:

Japan Airlines: Bankruptcy and loss | Qantas dropping first-class seats? | China's high-speed rail hurting air travel?

Timon Singh

Timon Singh is a graduate of Liverpool University where he received a degree in Social and Economic History. He has previously worked for BBC Magazines on BBC Who Do You Think You Are? Magazine, the publication for the popular genealogy show.

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