US and Japan sign Open Skies deal

Way open for closer co-operation - JAL

JAL: closer co-operation

The governments of the US and Japan have signed an Open Skies deal.

Japan Airlines (JAL), which is being courted by two US airlines, said the agreement would open the way to closer co-operation with American carriers.

Ray LaHood, the US transport secretary, said the deal would provide benefits for both countries' consumers, airlines and economies.

The deal is expected to open up the transpacific routes from the US to Tokyo.

This has been dominated by four carriers, United Airlines, Northwest Airlines (now merged with Delta Air Lines, JAL, and All Nippon Airlines (ANA).

Among those expected to benefit is American Airlines which is a fellow member of oneworld with JAL and one of the carriers, along with Delta, hoping to invest in JAL.

 The US -Japan deal has some similarities to the EU-US Open skies deal whose first phase opened up London Heathrow to all European and US airlines for transatlantic flights.

Previously only four had been allowed to fly this route from the hub.

The loss-making JAL, which is undergoing a government-led restructuring plan, said it welcomed the deal and looked for to an expansion of passenger traffic between the two countries.

It said under the agreement, "American and Japanese carriers will be able to apply for anti-trust immunity (ATI) with each other.

"This will pave the way for closer cooperation between partner airlines, allowing both to more efficiently plan routes and flight schedules".

Both American and Delta have made offers top invest substantial sums into JAL to help ease it through its current financial woes.

Delta has made its offer conditional on JAL quitting oneworld and joining it in the rival SkyTeam alliance.

JAL has yet to make a decision on the rival offers.

www.jal.com   www.aa.com  www.delta.com   www.dot.gov