HondaJet, a car and transfer service for local transportation
Honda will start a transportation service using the business jet "HondaJet" in Japan in 2023. In the past, it was mainly used by companies, etc. for their own business purposes by purchasing or leasing. It is characterized by being able to make reservations and payments all at once using a smartphone app, etc., as a set with a car or motorcycle. Aiming to use it between local airports where there are few regular flights, it is thought that it will be a convenient transportation for the region and lead to economic revitalization.
On the 21st, a briefing session for the new service was held in Kumamoto Prefecture and elsewhere. Demonstration tests will begin in October. Honda itself will be the business entity of the service, and will select the regions where it will formally provide the service by 2023, as well as the companies with which it will cooperate.
First, we will develop corporate demand. We will aim at group use for business trips and trips by companies and medical tourism sponsored by medical institutions. In the future, it is planned to be able to use it for personal travel. Partners are expected to be local railway and bus companies, tourism companies, and local governments.
Honda will start a transportation service using the business jet "HondaJet" in Japan in 2023. In the past, it was mainly used by companies, etc. for their own business purposes by purchasing or leasing. It is characterized by being able to make reservations and payments all at once using a smartphone app, etc., as a set with a car or motorcycle. Aiming to use it between local airports where there are few regular flights, it is thought that it will be a convenient transportation for the region and lead to economic revitalization.
On the 21st, a briefing session for the new service was held in Kumamoto Prefecture and elsewhere. Demonstration tests will begin in October. Honda itself will be the business entity of the service, and will select the regions where it will formally provide the service by 2023, as well as the companies with which it will cooperate.
First, we will develop corporate demand. We will aim at group use for business trips and trips by companies and medical tourism sponsored by medical institutions. In the future, it is planned to be able to use it for personal travel. Partners are expected to be local railway and bus companies, tourism companies, and local governments.
A transportation service that uses HondaJet can drive a car close to the aircraft (21st, prefectural parking apron adjacent to Kumamoto Airport)
In the case of domestic companies that rent business jets and provide services, the usage fee is 1 million to 1.5 million yen per hour. Honda aims to offer the product at a price below the competition. It is also considering introducing "dynamic pricing," in which prices change depending on the time of day and how busy it is. Chief Daisuke Inoue, who is in charge of the project, said, "We want to make the jet a more familiar vehicle."
It is the first time in Japan that a business jet is combined with a comprehensive transportation service (MaaS, Mars) that improves convenience by making it possible to make bulk reservations for cars, trains, etc. using an app. This service is still unique in the world. Starting in Japan, Honda is also looking to expand into Asia.
Jet reservations can be changed up to one day in advance, assuming that they will be accepted using a dedicated smartphone app. Reservations and payments can be made together with the company's car-sharing service "Everygo" and similar services for motorcycles. It is a mechanism that allows you to ride a jet for short and medium distances, and travel and sightsee outside the airport by car or two-wheeled vehicle.
In addition to owning its own jets, Honda's strength lies in its group companies' operations. In the case of other companies' jet charter services, the aircraft is outsourced or the flight is outsourced, so the reservation deadline is about a week before the use date, which is inconvenient.
In the HondaJet cabin, two people can sit facing each other with their legs stretched out.
At the briefing, reporters also experienced boarding. We traveled by car from Honda Kumamoto Factory (Ozu Town, Kumamoto Prefecture), a motorcycle manufacturer, to Kumamoto Airport (Tomomashiki Town), and then used a jet from the airport to Honda Aviation Oita Office (Kunisaki City, Oita Prefecture).
"It's already taken off." The sound is quiet, and even in the sky, you can hardly feel the shaking that is characteristic of small aircraft. It's narrower than a regular aircraft, but it's wide enough for two people to sit facing each other and stretch their legs.
I drove from Oita Works to Honda Taiyo (Hiji-cho, Oita Prefecture), an auto parts manufacturer. When traveling between the bases in Kumamoto and Oita by car, it usually takes a little over two hours, but it only took an hour and a half. Because of Japan's mountainous terrain and road detours, using a jet can often shorten travel times even for short distances. If you travel by scheduled flight, you will need to go through check-in procedures and security checks at the airport, but business planes do not.
The aircraft "Honda Jet Elite" used for the new service has a passenger capacity of 6 people. The cruising range is about 2,700 kilometers, but in actual operation it will be enough to traverse Honshu. A HondaJet costs 700 to 800 million yen to purchase. A total of 10 units have been sold so far.
According to Indian research firm Markets and Markets and Global Information, the global market for medium-sized business jets, including the HondaJet, will double from 2021 to $10.7 billion (approximately ¥1.5 trillion) by 2030. Expanding.
According to a survey by the Ministry of Land, Infrastructure, Transport and Tourism, as of the end of 2020, the United States owned about 22,000 business jets, Germany 783, and the United Kingdom 525. Japan has only 59 aircraft, and Honda believes that there is plenty of room for growth in the domestic market.
According to the Ministry of Land, Infrastructure, Transport and Tourism, there are 97 airports managed by the national government, companies, and local governments. However, due to the impact of the new coronavirus, the number of regular flights has decreased. According to the Ministry of Land, Infrastructure, Transport and Tourism, the total EBITDA (earnings before interest, taxes, depreciation and depreciation) of 19 airports managed by the government in fiscal 2020 will be in the red with a deficit of 53.3 billion yen.
Local governments aim to revitalize airports and regional economies by attracting business jets. Yamanashi Governor Kotaro Nagasaki said in late May that the prefecture would consider building a new airport dedicated to small aircraft. The prefecture does not currently have an airport, but plans to build a runway for takeoff and landing of small aircraft.
Kumamoto Prefecture, where the HondaJet took off this time, also said, "We would like to cooperate with companies to expand jet initiatives," said Yoshihiro Chika, assistant manager of the Transportation Policy Division.
According to a trial calculation compiled by the Ministry of Land, Infrastructure, Transport and Tourism in 2021, if the domestic business jet market were to double in size, the economic effect on related industries would reach approximately 740 billion yen. If we include tourism consumption and work efficiency by shortening travel time, the effect could be even greater.
Since its commercialization in 2016, HondaJet has cultivated business demand for short and medium distances around the world. It has sold more than 200 units in total, and will continue to hold the top spot for the fifth consecutive year until 2021 in the sales of medium-sized and smaller jets. The original design, such as placing the jet engine on the wing to secure a spacious cabin space, and the cost reduction techniques cultivated in the car came to life.
The world's aircraft and passenger services are in intense competition due to sluggish demand due to the corona crisis. If the base expands with new mobile services, it will also contribute to earnings. Honda's jet business is expected to return to profitability soon.
