Deal Removes Restrictions On International Flights

Secretary of Transportation Ray LaHood today announced that the United States and Japan reached agreement on the text of a landmark Open-Skies aviation agreement, liberalizing U.S.-Japan air services for the carriers of both countries. The agreement was reached after five rounds of negotiations focusing on Open Skies, beginning in May of this year.

“Achieving Open Skies with Japan, a major U.S. transportation and trade partner, has been a long-standing U.S. goal and is good news for air travelers and businesses on both sides of the Pacific,” said Secretary LaHood. “Once this agreement takes effect, American and Japanese consumers, airlines and economies will enjoy the benefits of competitive pricing and more convenient service.”

Under the new agreement, 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. It would remove restrictions on capacity and pricing, and provide unlimited opportunities for cooperative marketing arrangements, including code-sharing, between U.S. and Japanese carriers.

Although the 1952 U.S.-Japan aviation agreement was greatly expanded in 1998, many U.S. carriers serving Japan were still subject to restrictions on capacity, routing, pricing, and code-sharing. Delta, Continental, United, and American have all issued statements of support for the new agreement.

"By their nature, bilateral agreements create a system in which some airlines receive aviation rights while others do not," said Will Ris, American Airline's Senior Vice President - Government Affairs. "Open Skies agreements, on the other hand, end discriminatory aviation policies and are in the best interest of American and Japanese people as well as the nations' airlines."

The agreement also would provide opportunities for growth of U.S. carrier operations at Tokyo’s Narita Airport and ensure fair competition regarding the new opportunities at Tokyo’s close-in Haneda Airport.  Once the agreement is finalized, Japan will become the 95th U.S. Open-Skies partner. Both the United States and Japan must affirmatively act in order to put the agreement into effect.

FMI: www.DOT.gov