US, Japan relax limits to forge broader open skies agreement
Source: Agencies |
December 13, 2009, Sunday
|
Print Edition
Print Edition
The United States and Japan have reached a landmark agreement to relax limits on flights between the two countries, opening up the possibility of wider cross-border airline alliances and more options for air travelers.
Under the Friday agreement, which still must be finalized by both governments, airlines from each country 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 countries or the number of flights they 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. But 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 US-Japan agreement likely will also prompt Japan Airlines to seek a joint venture with a US carrier.
The US-Japan agreement also would 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.
American Airlines has a code-sharing agreement with Japan Airlines, while United Airlines has a code-sharing agreement with All Nippon Airways. Delta Air Lines is seeking to lure Japan Airlines away from American and into Delta's SkyTeam alliance.
A joint venture allows airlines to share cost and revenue on certain flights regardless of which airline owns or flies the aircraft. It differs from a code-sharing agreement in which one airline bears all the cost but another might share the revenue for booking customers on a flight.
Under the Friday agreement, which still must be finalized by both governments, airlines from each country 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 countries or the number of flights they 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. But 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 US-Japan agreement likely will also prompt Japan Airlines to seek a joint venture with a US carrier.
The US-Japan agreement also would 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.
American Airlines has a code-sharing agreement with Japan Airlines, while United Airlines has a code-sharing agreement with All Nippon Airways. Delta Air Lines is seeking to lure Japan Airlines away from American and into Delta's SkyTeam alliance.
A joint venture allows airlines to share cost and revenue on certain flights regardless of which airline owns or flies the aircraft. It differs from a code-sharing agreement in which one airline bears all the cost but another might share the revenue for booking customers on a flight.
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