The US and Japan reached a landmark agreement 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 reached on Friday, which must still 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 US 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 US 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. However, US passenger airlines have been generally limited in the routes and number of flights they can operate to Japan.
United CEO Glenn 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 agreement will likely also prompt Japan Airlines to seek a joint venture with a US carrier.
The US-Japan agreement would also provide opportunities for growth of US 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 US Department of Transportation (DOT).
American Airlines has a codesharing agreement with Japan Airlines, while United Airlines has a codesharing agreement with All Nippon Airways. Delta Air Lines is seeking to lure Japan Airlines away from American and into Delta’s SkyTeam alliance.
The DOT said the text of the so-called “open skies” agreement between the US and Japan has been set, although there is no specific timetable on when the agreement will take effect.
The US has open skies agreements with other countries, including the EU and Australia.
Continental, based in Houston, said one key part of the open skies agreement is that it provides the US airline industry guaranteed access to Haneda airport for the first time. That could spur sales on US carriers flying to Japan because of how close the airport is to the center of Tokyo.
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