Paul Lewis/SINGAPORE

JAPAN HAS GIVEN THE US Government until 27 July to respond to its formal demand for talks to begin on a new passenger bilateral air-service agreement, or face possible retaliatory measures.

The Japanese transport ministry delivered the ultimatum to the US embassy in Tokyo, after the USA failed to respond to repeated unofficial requests for fresh talks. Under the existing accord, Washington must reply within 60 days.

If the USA fails to take action, Japan would consider "retaliation", says a Government official. Tokyo has hinted in the past that it would revoke unilaterally the existing 1952 bilateral treaty, unless the USA renegotiates what Japanese airlines consider to be "gross inequalities" in the deal.

Privately, however, Japanese sources play down the chance of any serious retaliatory action being taken. "It is unlikely that Japan would plan any sanctions other than symbolic," suggests one airline official. Pressure on the US Administration has also come from within the USA, led by American Airlines and the Access-Japan group.

The two sides recently signed a new bilateral air-cargo agreement, and Japan is keen to follow up quickly with fresh talks on the more vexing issue of passenger services. The USA has been demanding that all outstanding, individual, airline claims be resolved first, before any official negotiations start.

Japan is hoping that these issues will finally be cleared up during informal talks planned for 3-4 June. Residual disputes include Northwest Airlines' application to launch a new three-times-weekly service between Seattle and Jakarta, via Japan's Kansai Airport, from 3 July.

A lasting agreement also needs to be reached on Japan Airlines' Tokyo-Kona, Hawaii, route and United Airlines' daily Kansai-Seoul service. A temporary deal, allowing the two to operate to the new destinations, expires on 26 October (Flight International, 8-14 May, P8).

Source: Flight International