Deal to relax limits on flights between US, Japan

[unhappycamper]

Deal to relax limits on flights between US, Japan
By DAVID KOENIG and HARRY R. WEBER
AP Airlines Writers
Dec 12, 7:54 AM EST

An aviation agreement between the U.S. and Japan could usher in a new period of closer alliances among the major carriers in both countries.

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.


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