A license to operate an air transport business may be granted only to enterprises where less than one-third of the voting rights are held by non-Japanese nationals and none of its  representatives  and  less  than  one-third  of  members  of  the  board  of  directors  are  non-Japanese. Cabotage and other domestic services using aircraft are reserved to national airlines.
"(Requirement for Registration)
Article 4 (1) Any aircraft owned by any person who falls under any of the following items shall not be eligible for registration.
(i) Any person who does not have Japanese nationality
(ii) Any foreign state or public entity or its equivalent in any foreign state
(iii) Any juridical person or body established in accordance with the laws and ordinances of any foreign state
(iv) Any juridical person of which the representative is any one of those listed in the preceding three items or of which one-third or more of the officers are such persons or one-third or more of voting rights are held by such persons
(2) Any aircraft which has the registration of any foreign state shall not be eligible for registration.
[...]
(License)
Article 100 (1) Any person who operates air transport services shall obtain a license from the Minister of Land, Infrastructure, Transport and Tourism.
(2) Any person who intends to obtain a license set forth in the preceding paragraph shall submit an application to the Minister of Land, Infrastructure, Transport and Tourism, describing the following matters:
[...]
(Licensing Standards)
Article 101(1) The Minister of Land, Infrastructure, Transport and Tourism shall, when there has been an application under the preceding article, examine whether it conforms to each of the following: [...]
(v) Any applicant shall not fall under any of the following categories:
(a) Any person listed in any item of Article 4 paragraph (1) [...]
(e) Any company whose holding company (any holding company under Article 9 paragraph (5) item (i) of the Act concerning Prohibition of Private Monopolization and Maintenance of Fair Trade (Act No.54, 1947) or affiliated company which is deemed to have effective control over the operations of the said company, as may be specified by Ordinances of Ministry of Land, Infrastructure, Transport and Tourism (hereinafter referred to as "holding company etc.") falls under Article 4 paragraph (1) item (iv)
(2) The Minister of Land, Infrastructure, Transport and Tourism shall, when he/she deems that the application conforms to the standards pursuant to the provision of the preceding paragraph as a result of examination under the provision of the same paragraph, issue a license for air transport services.
[...]
(Handling of Shares Acquired by Foreign Nationals etc,)
Article 120-2(1) Any domestic air carrier, which is a corporation issuing shares listed on a stock exchange or their quasi-shares specified by Ordinances of the Ministry of Land, Infrastructure, Transport and Tourism, and its holding companies etc. may, when it is requested by a person who has obtained its shares and falls under any of the categories listed in Article 4 paragraph (1) items (i) through (iii) (hereinafter referred to as "foreigner nationals etc." to enroll or register his/her name and address in the shareholders' list, refuse to enroll or register such name and address if the domestic air carrier has come to fall under item (iv) of the same paragraph by accepting such request.
(2) Any domestic air carrier, and its holding companies etc. set forth in the preceding paragraph shall notify publicly the percentage of foreign nationals etc. in shareholder voting rights pursuant to the provision of Ordinances of the Ministry of Land, Infrastructure, Transport and Tourism; provided, however, that the same shall not apply where the percentage falls short of the level specified by Ordinances of the Ministry of Land, Infrastructure, Transport and Tourism.
[...]
(Flights of Foreign Aircraft)
Article 126 (1) Any aircraft having the nationality of any foreign state, which is a Contracting State to the Convention on International Civil Aviation (hereinafter referred to briefly as "Contracting State") (except any aircraft which is used for the concerned services by any person who has obtained permission under Article 129 paragraph (1) (hereinafter referred to as "foreign international air carrier"), any aircraft which is used for the concerned transportation by any person who has obtained permission under Article 130-2, and any aircraft which is used by any foreign state, any public entity or any equivalent of a foreign state) shall, when it engages in any of the following flights, obtain permission from the Minister of Land, Infrastructure, Transport and Tourism; provided, however, that the same shall not apply to any flights operated along designated airways.
(i) Flight departing from outside of Japan and arriving in Japan
(ii) Flight departing from Japan and arriving at outside of Japan
(iii) Flight departing from outside of Japan through Japanese airspace without landing in Japan and arriving at outside of Japan
(2) Any aircraft having the nationality of a Contracting State, which is used by any foreign state, any public entity or any equivalent of a foreign state, and any aircraft having the nationality of any foreign state other than a Contracting State (except any aircraft which is used for the concerned services by any foreign international carrier or any aircraft which is used for the concerned transportation by any person who has obtained permission under Article 130-2) shall, when it engages in a flight listed in any item of the preceding paragraph, obtain permission from the Minister of Land, Infrastructure, Transport and Tourism.
[...]
(Use of Foreign Aircraft within Japan)
Article 127 No aircraft having the nationality of any foreign state (except for any aircraft which is used for the concerned services of any foreign international carrier or any aircraft which is used for the concerned transportation by any person who has obtained permission under Article 130-2 shall be used for any flights between points within Japan; provided, however, that the same shall not apply when permitted by the Minister of Land, Infrastructure, Transport and Tourism.
[...]
(International Air Transport Services by Foreign Nationals)
Article 129(1) Notwithstanding the provisions of Article 100 paragraph (1), any person listed to in (a) or (e) of Article 101 paragraph (1) item (v) may, upon permission by the Minister of Land, Infrastructure, Transport and Tourism, operate services for passenger or cargo transport through any flight listed in each item of Article 126 paragraph (1) (including flights between points in Japan which are made in connection thereof) for remuneration in response to demand of other persons.
[...]" (Civil Aeronautics Act (No. 231 of July 15, 1952), last amended by Act No. 61 of 2020, Articles 4, 100, 101, 120-2, 126, 127 and 129 [unofficial translation])
Civil Aeronautics Act (No. 231 of July 15, 1952), last amended by Act No. 61 of 2020, Articles 4, 100, 101, 120-2, 126, 127 and 129
[<a href="https://elaws.e-gov.go.jp/document?lawid=327AC0000000231">Act</a>],[<a href="http://www.japaneselawtranslation.go.jp/law/detail/?id=37&vm=02&re=02">Act_Eng</a>]