The U.S. and Japan reached a landmark agreement Friday to relax limits on flights between the two countries, opening up the possibility of broader cross-border airline alliances and more options for air travelers.
Under the agreement, which still must be finalized by both governments, airlines from both countries would be allowed to select routes and destinations based on consumer demand for both passenger and cargo services without limitations on the number of U.S. or Japanese carriers that can fly between the two countries or the number of flights they can operate.
The agreement also would remove restrictions on capacity and pricing, and provide unlimited opportunities for cooperative marketing arrangements between U.S. and Japanese carriers.
Delta and United Airlines are already allowed to serve Japanese cities, and Delta's acquisition of Northwest Airlines last year increased its Asian presence. But U.S. passenger airlines have been generally limited in the routes and number of flights they can operate to Japan.
United CEO Gle-nn Tilton said his airline soon would file an antitrust immunity application for a trans-Pacific joint venture with All Nippon Airways and Continental Airlines. The U.S.-Japan agreement likely will also prompt Japan Airlines to seek a joint venture with a U.S. carrier.
The U.S.-Japan agreement also would provide opportunities for growth of U.S. carrier operations at Narita Airport near Tokyo and ensure fair competition regarding the new opportunities at Tokyo's Haneda Airport, which is close to the city center, according to a statement from the U.S. Department of Transportation. ...
