Ministry of Land, Infrastructure, Transport and Tourism (MLITT) in Japan has selected a consortium led by Hokkaido Airport Terminal as the preferred bidder for the contract to operate seven airports on Hokkaido island. The consortium will now enter exclusive talks with the ministry.

The project includes privatization and operation of New Chitose, Wakkanai, Kushiro, Hakodate, Asahikawa, Obihiro and Memanbetsu airports on Hokkaido island which at the moment are operated by the national or local government. Sapporo Chitose Airport is the main international gateway to Hokkaido. It is the third busiest in the country, behind Tokyo's two airports and is served by major airlines from across East Asia. The only other airport with an international destination in the tender bundle is Hakodate, which serves Taiwan. The concessionaire will be responsible for the operation of the runways, terminal buildings and car parking facilities of the airports.

The consortium led by Hokkaido Airport Terminal Co. consist of 20 companies and among them includes Mitsubishi Estate Co., Tokyu Corp., Development Bank of Japan, North Pacific Bank, Mitsui, and Hokkaido Electric Power Co. Hokkaido Airport Terminal Co is an operator of New Chitose Airport’s terminal buildings.

The consortium will begin operating the seven airports in stages starting in 2020, the 30-year concession contract is expected to be signed in October 2019.

The winning consortium was competing with other three bidders who featured Vinci Airports, Orix, Aeroports de Paris, Tobu Railway and Kamori Kanko.

New Chitose airport is the only profitable airport in the concession package (it is the second most profitable airport in Japan after Haneda airport in Tokyo), the other 6 airports are unprofitable. Hokkaido island attracts summer and winter tourists. Passenger traffic in New Chitose airport increased to about 3.2 million in 2017, tripling from 2014. To improve the profits of the 6 underperforming airports the consortium will need to boost passenger numbers through developing regional tourism.