Osaka's Kansai airport begins building budget airline terminal

Construction is under way at Kansai International Airport Wednesday for a terminal dedicated to budge airlines at a cost of nearly 10 billion yen.

The construction is due to be completed by autumn next year. The one-story terminal will have a floor space of about 30,000 square meters and can host nine aircraft.

"We hope to help promote the economic growth of the Kansai region (surrounding Osaka) by setting up Japan's first terminal for the exclusive use by low-cost carriers and creating further air travel demand," said Shinichi Fukushima, head of the airport operator, at a celebratory ceremony.

Peach Aviation Ltd., an Osaka-based carrier partially owned by All Nippon Airways Co., is expected to use the terminal. The company is due to go into service in March next year.