United Airlines wasted no time in declaring that it will seek antitrust immunity for a joint venture with Continental Airlines Inc. and Japan's All Nippon Airways in which the three would work together to set prices and flight schedules on trans-Pacific routes.
But the real drama concerns the next deal. Japan Airlines, that country's largest carrier, is likely to seek antitrust immunity with Delta Air Lines Inc. or American Airlines, the two largest U.S. carriers.
Delta and American are already waging an unusually public fight over Japan Airlines. After Delta pledged $1 billion to prop up financially troubled JAL, American and its partners said they would invest $1.1 billion. The U.S. carriers are attracted by JAL's strong routes in Japan and China.
The aviation deal reached late Friday by the U.S. and Japan came together during an intense round of talks this week. It still needs formal approval by both nations, and no date was announced for its implementation.
The agreement would relax limits on passenger and cargo flights between the two countries. U.S. Transportation Secretary Ray LaHood called it "good news for air travelers and businesses on both sides of the Pacific."
"Once this agreement takes effect, American and Japanese consumers, airlines and economies will enjoy the benefits of competitive pricing and more convenient service," LaHood said.
Japanese transport minister Seiji Maehara also welcomed the agreement, calling it "extremely meaningful," as air traffic connecting the two countries provides the biggest aviation market for Japan.
"I hope Japanese and U.S. aviation industries would actively take advantage of the scheme to provide better service and benefits for passengers and shippers and help promote further development of Japan-U.S. aviation ties," Maehara said in a statement.
The U.S. already has so-called open-skies treaties with about 90 countries, including European Union members and Australia. The agreements are designed to increase competition and cut fares by giving airlines more power to pick routes and set prices.
The U.S.-Japan agreement would give American carriers the chance to expand at Narita Airport outside Tokyo and compete at Haneda Airport near downtown Tokyo, according to the Transportation Department. The deal would replace a 1950s treaty that gives Delta and United more access to Japan than other U.S. carriers.
