DAVID KNIBB / SEATTLE
Time is running short for US and Japanese negotiators as they seek to liberalise their bilateral agreement. Unless they make a breakthrough by January, automatic provisions in their 1998 bilateral will take effect. Yet, after three rounds of talks, they are arguing about slots rather than principles and have nothing to show for their efforts.
In the 1998 bilateral both sides agreed to resume talks last year on "further liberalisation". The first round of these talks took place last November, followed by meetings this year in February and July, but none has proved fruitful.
Tokyo and Washington have widely differing views on the meaning of "liberalisation". The USA wants open skies - the Japanese want US cabotage; the USA wants more slots at Narita - the Japanese want more for their own airlines. Tokyo claims the opening of Narita's second runway in May marks its only chance to correct an historic imbalance in slots favouring US carriers. From its viewpoint, liberalisation means more equality of opportunity - not more rights for US airlines.
The automatic provisions set to take effect in January would favour "non-incumbent" carriers - those without grandfather rights under the original 1952 bilateral. These provisions would grant higher frequencies to American Airlines, Delta Air Lines, and All Nippon Airways. Yet carriers such as American still cannot operate all the frequencies they gained under the 1998 bilateral because of Narita's slot limits.
Some observers claim Tokyo has concluded that the automatic provisions are less onerous than Washington's more recent demands. Hence, in their view, Japan is willing to stall and let those automatic rights take effect as the lesser of two evils.
Source: Airline Business
