Japan Expects US To Decide On Airline Pacts By Oct 2010
December 21st, 2009 | File Under : Airline Industry - Airline Service - Airlines Companies - American Airline - Delta Air Lines
Japan’s transport ministry expects the U.S. government to rule on two expected airline antitrust applications by October 2010 before enacting a landmark new aviation deal.
The ministry expects the applications involving Japanese members of two global airline alliances to be filed by mid-February, and called on its counterpart “to give expeditious consideration,” according to a letter sent to the U.S. State Department.
The Japanese timetable sets the stage for Japan Airlines Corp. (9205.TO, JALSY) to decide whether to stay in the Oneworld pact with existing partner American Airlines, a unit of AMR Corp. (AMR), or defect to the SkyTeam grouping led by Delta Air Lines Inc. (DAL).
The so-called side letter from Japan’s Ministry of Land, Infrastructure, Transport and Tourism accompanied the memorandum of understanding agreed upon last week by the two countries to liberalize their restrictive aviation pact.
The ministry said it would sign the open-skies deal when antitrust immunity is granted “on the terms that are acceptable to the Japanese delegation.” Keiji Takiguchi, deputy director general of civil aviation at the ministry, said in the letter that he “strongly urges” the U.S. to decide on the application from JAL and its partner by October next year, when a new runway at Haneda airport will see the Tokyo gateway expand international service.
A parallel application for immunity to coordinate flights, fares and marketing is expected from All Nippon Airways Inc. (9202.TO) and partners United Airlines, a unit of UAL Corp. (UAUA), and Continental Airlines (CAL).
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