Japan and the USA agreed in September on a limited air services liberalisation that sets the stage for negotiations toward a larger loosening of restrictions.
The first major modification of the Japan/US bilateral since 1998 loosens some restrictions on airline pricing and codesharing and allows for an increase in charter and cargo flights. It falls short of allowing more passenger flights but contains a provision for further negotiations next summer.
The new pact expands codesharing opportunities for both passenger and cargo carriers. It also clears the way for airlines of both nations to operate as many charter flights as they wish on all routes except those to Tokyo's two airports. Negotiators from the two nations agreed to expand the limit for the number of charter flights to and from the Tokyo airports from 300 to 400 in 2008 and to 500 in 2009.
The two countries also agreed to liberalise air cargo carrier rights between the USA and the Japanese cities of Nagoya and Osaka to allow carriers to serve beyond points from those Japan airports. Express parcel carriers FedEx and UPS both welcomed the news.
Japan and the USA can still veto fares that passenger carriers set for flights originating in Japan. But the previous double-approval process, which required both nations to okay all fares, has been loosened.
Source: Airline Business
