Negotiators are pressing to meet a self-imposed deadline of 30 September for a Japan-US bilateral deal. Both sides know a failure to settle their differences could set off a round of sanctions.
At presstime, a second round of talks had been scheduled for the end of August - following inconclusive talks earlier in the month in Tokyo - in an effort to close the gap still separating the two sides. Some ground has been conceded after Washington backed off its insistence on instant open skies when the Japanese made it clear they would not accept such a deal.
The US focus is now on what transportation secretary Rodney Slater terms 'a fully liberalised open skies regime in a reasonable time frame.' Tokyo remains intent on equalising what it has long viewed as an unbalanced bilateral.
Japan has floated proposals to break the long-standing impasse over US fifth freedoms. According to a Ministry of Transport official, Tokyo is willing to grant fifth freedoms, tied to increases in traffic, for the restricted MoU carriers, if Washington will agree to placing a cap on the unlimited fifth freedoms claimed by the three US incumbents, FedEx, Northwest and United.
Indeed, United has already shifted its stance on its claim to unlimited fifth freedoms and chief executive Gerald Greenwald is now much more interested in gaining codesharing rights. There is speculation that United is looking for an alliance with ANA, but the latter already has a deal on hold with Delta Air Lines.
Japan Airlines, the only Japanese incumbent, has unveiled plans with American Airlines for a broad alliance, including codesharing, pending a new bilateral.
David Knibb
Source: Airline Business
