Mixed Response To Us, Japan Aviation Deal

The Japanese government on Saturday hailed an aviation accord reached with Washington, but one major Japanese airline slammed the agreement for favouring US carriers.

The US and Japan announced on Friday a new aviation agreement to boost the number of flights and carriers serving the $10 billion a year air traffic market between the two nations.

Transport minister Takao Fujii on Saturday said the agreement would lead to improved service and remedy shortcomings in a bilateral aviation accord reached in the 1950s.

The agreement will help correct the unfair bilateral aviation situation, Fujii told reporters in Tokyo. Foreign minister Keizo Obuchi also praised the accord for helping improve economic relations.

 

I think the results of the accord will help promote a stable relationship between Japan and the US, including economic ties, Obuchi said in a statement.

But Japans largest overseas carrier, Japan Airlines Co, severely criticised the agreement, saying it would unfairly benefit US carriers.

This accord is a big disappointment. The benefits to US airlines far exceed any benefits for Japanese airlines, JAL president Akira Kondo said in a statement.

Kondo said the new agreement gives US carriers the right to pick up traffic in Japan and then fly on to other parts of Asia, which will hurt Japanese and Asian airlines.

There is no right in the US market of comparable value for Japanese carriers, Kondo said.

JALs main competitor, All Nippon Airways Co, is expected to benefit greatly from the new pact because it will be able to increase its flights to the US.

ANA officials said they are planning to launch 28 weekly round trip flights between Kansai international airport in Osaka and Honolulu, Chicago and New York, Kyodo News reported.

Travel officials said the accord should benefit consumers because it will lead to lower prices through increased competition, and increase the number of access points in Japan for overseas travel.

Under the deal, the so-called incumbent US carriers, who already enjoyed extensive rights under the original 1952 treaty, will gain full rights to offer service between any US points to any points in Japan.

Those incumbent carriers United Airlines, Northwest Airlines and Federal Express will also be entitled to fly beyond Japan to other points without any limitations.

ANA becomes the second Japanese carrier allowed unrestricted access to the US. JAL already enjoys such access.