Dependence on Airlines and Risk of Tenant Vacancies and Declining Usage
First written in FY2016. 8 of 18 entries say "Mitigated", first in FY2018. Latest entry: FY2026.
The whole theme swung hardest in 2020: 29 of 92 companies on the "Worse" side.
- FY2026MitigatedAnnual report
「In particular, Japan Airlines Co.,Ltd. and All Nippon Airways Co., Ltd. are major tenants of the Group and, together with Japan Airport Terminal Co.,ltd., are also major customers for its heating supply, water supply, and drainage businesses. These 3 companies are important customers, accounting for 33.4% of the Group’s sales.」
The concentration of sales among the 3 important customers declined from 38.7% previously to 33.4%. Dependence remains evident, but the degree of concentration has declined from the most recent disclosure. - 2026-05-15WorsenedGovernance
「Approximately 22.3% of our consolidated sales depend on affiliated companies. However, with respect to contracts relating to our business between the Company and its affiliated companies, we apply the same approach as we do to transactions with other customers.」
The Company specifically disclosed that an affiliated company is both a major shareholder and an important customer, and that approximately 22.3% of consolidated sales depend on affiliated companies. The existing thread concerning dependence on airlines and other customers now specifies the relevant counterparty and proportion. - FY2025MitigatedAnnual report
「In particular, Japan Airlines Co.,Ltd. and All Nippon Airways Co., Ltd. are major tenants of the Group and, together with Japan Airport Terminal Co.,ltd., are also major customers for its heating supply, water supply, and drainage businesses. These 3 companies are important customers, accounting for 38.7% of the Group’s sales.」
The concentration of sales among the 3 important customers declined from 43.1% in the previous disclosure to 38.7%. Although dependence on important customers remains, the degree of concentration declined. - FY2024WorsenedAnnual report
「In particular, Japan Airlines Co.,Ltd. and All Nippon Airways Co., Ltd. are major tenants of the Group and, together with Japan Airport Terminal Co.,ltd., are also major customers for its heating supply, water supply, and drainage businesses. These 3 companies are important customers, accounting for 43.1% of the Group’s sales.」
The concentration of sales among the 3 companies increased from 41.8% in the previous disclosure to 43.1%, indicating greater dependence on specific customers. Responding to diverse needs and maintaining long-term business relationships are cited as measures to mitigate the risk. - FY2024-Q3MitigatedAnnual report
「In the water supply and drainage operations business, passenger numbers recovered and water supply and drainage usage was returning to pre-pandemic levels following the transition of COVID-19 to a Class 5 disease and other factors. Usage also increased following the full opening of Haneda Airport Garden in January 2023. The shared communications business also performed steadily. As a result, revenue was ¥2,258 million, up 31.6% year on year, and operating income was ¥283 million, up 132.7%.」
The impact of lower water supply and drainage usage arising from dependence on air travel demand and airport utilization was further mitigated by the recovery in passenger numbers and the full opening of Haneda Airport Garden, among other factors, resulting in higher revenue and operating income in the water supply and drainage operations business. - FY2024-Q2MitigatedAnnual report
「In the water supply and drainage operations business, passenger numbers recovered and water supply and drainage usage was returning to the pre-pandemic planned volume following the transition of COVID-19 to a Class 5 disease and other factors. The shared communications business also performed steadily. As a result, revenue was ¥1,506 million, up 34.7% year on year, and operating income was ¥213 million, up 161.7%.」
The impact of lower usage arising from dependence on air travel demand and airport utilization was offset by the recovery in passenger numbers and water supply and drainage usage, resulting in year-on-year increases in revenue and operating income in the water supply and drainage operations business. - FY2022MitigatedAnnual report
「In particular, Japan Airlines Co.,Ltd. and All Nippon Airways Co., Ltd. are major tenants of the Group and, together with Japan Airport Terminal Co.,ltd., are also major customers for its heating supply, water supply, and drainage businesses. These 3 companies are important customers, accounting for 41.8% of the Group’s sales.」
Concentration of sales among the 3 airlines and other companies remains an important risk, although the concentration ratio declined from 43.9% previously to 41.8%. Responding to diverse customer needs and maintaining business relationships are also explicitly identified as measures. - FY2022-Q2MitigatedAnnual report
「In the water supply, drainage, and other operations business, water supply and drainage usage recovered slightly compared with the same period of the previous year, when airport users had fallen sharply due to the spread of the novel coronavirus. Revenue was ¥977 million, up 7.2% year on year, and operating income was ¥10 million, compared with an operating loss of ¥64 million in the same period of the previous year.」
Although the impact of lower water supply and drainage usage resulting from the sharp decline in airport users remains, usage recovered slightly, and the water supply, drainage, and other operations business changed from an operating loss in the same period of the previous year to operating income. - FY2022-Q1MitigatedAnnual report
「In the water supply, drainage, and other operations business, water supply and drainage usage recovered slightly from the same period of the previous year, when airport users had fallen sharply due to the spread of the novel coronavirus, among other factors. Revenue was ¥461 million, up 5.3% year on year, and the operating loss was ¥9 million, compared with an operating loss of ¥46 million in the same period of the previous year.」
Water supply and drainage usage recovered slightly from the same period of the previous year, which was affected by a sharp decline in airport users, and the operating loss in the water supply, drainage, and other operations business narrowed from ¥46 million to ¥9 million. However, the business remains in an operating loss position. - FY2021-Q3WorsenedAnnual report
「In the water supply, drainage, and other operations business, the sharp decline in airport users caused by the novel coronavirus led to a continued substantial decrease in water supply and drainage usage. Revenue was ¥1,375 million, down 36.9% year on year, and the operating loss was ¥107 million, compared with operating income of ¥240 million in the same period of the previous year.」
The substantial decrease in water supply and drainage usage caused by the sharp decline in airport users continued, and the water supply, drainage, and other operations business changed from operating income in the same period of the previous year to an operating loss, with the impact of dependence on air travel demand increasing. - FY2021-Q2MaterialisedAnnual report
「In the water supply, drainage, and other operations business, the sharp decline in airport users caused by the novel coronavirus led to a continued substantial decrease in water supply and drainage usage. Revenue was ¥910 million, down 38.2% year on year, and the operating loss was ¥64 million, compared with operating income of ¥178 million in the same period of the previous year.」
The sharp decline in air travel demand and airport users led to substantial decreases in water supply and drainage usage and related revenue, turning this business into an operating loss. The risk of lower usage arising from dependence on the aviation industry has materialized in actual performance. - FY2020ReframedAnnual report
「In particular, All Nippon Airways Co., Ltd. and Japan Airlines Co.,Ltd. are major tenants of the Group and, together with Japan Airport Terminal Co.,ltd., are also major customers for its heating supply, water supply, and drainage businesses. These 3 companies are important customers, accounting for 43.9% of the Group’s sales.」
The disclosure has been organized from a focus on the concentration of trade receivables among certain major customers to an explanation that ANA, JAL, and Japan Airport Terminal Co.,ltd. are important customers accounting for 43.9% of Group sales. - FY2019WorsenedAnnual report
「As of the consolidated fiscal year-end, 42.3% of trade receivables were due from certain major customers.」
The concentration of trade receivables among certain major customers increased from 40.8% in the previous fiscal year to 42.3%, indicating greater concentration. - FY2018MitigatedAnnual report
「As of the consolidated fiscal year-end, 40.8% of trade receivables were due from certain major customers.」
The concentration of trade receivables among certain major customers is quantified, although it declined from 44.7% in the previous fiscal year to 40.8%. - FY2017-Q3RestatedAnnual report
「The Group’s purpose is to complement airport functions. Its principal businesses are leasing hangars and office space at airports and supplying heating and cooling services. As a result, sales to airlines, its principal tenants, account for a significant proportion of revenue, and changes in the environment surrounding the aviation industry are considered a factor that could materially affect the Group’s performance.」
The Group continues to clearly identify its dependence on sales to airlines and the risk that changes in the environment surrounding the aviation industry could materially affect performance. - FY2017-Q2RestatedAnnual report
「The Group’s purpose is to complement airport functions. Its principal businesses are leasing hangars and office space at airports and supplying heating and cooling services. As a result, sales to airlines, its principal tenants, account for a significant proportion of revenue, and changes in the environment surrounding the aviation industry are considered a factor that could materially affect the Group’s performance.」
The Group continues to clearly identify its dependence on sales to airlines and the risk that changes in the environment surrounding the aviation industry could materially affect performance. - FY2017-Q1RestatedAnnual report
「The Group’s principal businesses are leasing hangars and office space at airports and supplying heating and cooling services. As a result, sales to airlines, its principal tenants, account for a significant proportion of revenue, and changes in the environment surrounding the aviation industry are considered a factor that could materially affect the Group’s performance.」
The Group continues to clearly identify its dependence on sales to airlines and the risk that changes in the aviation industry environment could affect performance. - FY2016MaterialisedAnnual report
「The Group’s major customers are airlines and aviation-related companies. Accordingly, if airlines and aviation-related companies rationalize their operations or revise their business plans as a result of weak air travel demand or other factors, this could lead to lower occupancy rates at the Group’s properties and lower usage of its heating, water supply, and drainage services. As of the consolidated fiscal year-end, 51.5% of trade receivables were due from certain major customers.」
The departure of some major airlines from certain facilities has occurred and is cited as a factor behind lower revenue. The concentration of trade receivables among certain major customers is also quantified.