Alliance plans appear to have led to a softening of United Airlines' stance towards US bilateral talks with Japan, but there is little progress on open skies talks with the UK.
Formal bilateral negotiations between Japan and the US resumed in July, with Tokyo still rejecting the prospect of full open skies. The lack of progress over the past year has prompted United into a marked change of position. Previously it was holding out for open skies or nothing. Now the airline is calling for 'comprehensive liberalisation' and says that resuming talks increases the opportunities of gaining codeshare rights to 'virtually every city'. This position has prompted speculation that a Japanese carrier may join United's Star Alliance soon.
Northwest Airlines, meanwhile, is sticking to its position that only true open skies are meaningful. 'We are not in favour of an interim agreement,' says Northwest. At presstime, it appeared the two sides had made progress on further liberalisation and scheduled another round of talks in Tokyo for August.
Meanwhile, there had been no movement on open skies talks between the US and the UK up to mid-July. The lack of any timetable leaves American Airlines and British Airways kicking their heels over their proposed alliance. The US have made antitrust approval for the alliance contingent on open skies. In Brussels progress is held up by negotiations between London and Brussels over the number of slots the two carriers will have to give up at London/Heathrow in return for European approval of the alliance. A Brussels source says clearance is likely by October. But BA may walk away from the deal unless it gets US approval by then.
Airline Business staff
Source: Airline Business
