On August 20, 2024, Toki Aviation Capital, a company affiliated with the start-up airline Toki Air, issued a statement denying allegations that it misused Sado City’s employment opportunity expansion subsidies. The allegations were first reported by The Asahi Shimbun earlier that day.
According to The Asahi Shimbun’s report, the company submitted documents stating that it increased employment in Sado but does not have any employees living on the remote island. The Asahi Shimbun, citing people involved in the matter, said The Cabinet Office is investigating the matter and considering ordering Toki Aviation Capital to return the full amount, approximately 8,000,000 yen (approximately $55,000).
“The subsidy was introduced to Toki Aviation Capital by Sado City and we have been complying with all its requirements based on the law. Going forward, we will continue to take all necessary actions as directed by the relevant authorities,” said Toki Aviation Capital’s statement.
After multiple delays, Toki Air started commercial operations at the end of this January. Since then, it has expanded its network to include double daily flights from Niigata to Sapporo and Sendai. The airline was also planning to operate a training flight to Nagoya Chubu earlier this month in preparation for the launch of its next scheduled route but the plan has been postponed indefinitely.
In addition to connecting its base, Niigata Airport, with other cities on the mainland, the ATR turboprop operator is also planning to bring air service back to Sado, a remote island off the coast of Niigata.
Both Toki Air and Toki Aviation Capital are led by the same president, Masaki Hasegawa.