FOR IMMEDIATE RELEASE
Monday, March 16, 1998
Contact: Bill Mosley
Tel.: (202) 366-5571
DOT 49-98
U.S. CITIES AND AIRLINES RECEIVE
106 NEW WEEKLY FLIGHTS TO JAPAN
The Department of Transportation today tentatively awarded six U.S. airlines 106 new weekly flights to Japan from 13 U.S. cities under the new U.S.-Japan air services agreement, and made a final award for new code-share services beyond Japan. This prompt action recognizes the strong public interest in quickly permitting U.S. carriers to initiate the wide range of services available under the new agreement.
The agreement was signed March 14 by U.S. Transportation Secretary Rodney E. Slater and Japanese Transport Minister Takao Fujii. It was provisionally effective on Jan. 30, upon the signing of a framework agreement.
U.S. carriers tentatively gaining new rights under today’s action are American Airlines, Continental Airlines, Delta Air Lines, Hawaiian Airlines, Northwest Airlines and Trans World Airlines (TWA). Cities in the United States tentatively receiving new service to Japan are Atlanta, Boston, Chicago, Dallas/Fort Worth, Detroit, Houston, Maui, Hawaii, Los Angeles, Newark, N.J., New York, Portland, Ore., San Francisco and St. Louis.
"We knew our carriers were eager to gain this new authority and that the communities they would serve were just as eager to see us respond quickly. We thus acted swiftly to move the selection process forward," Secretary Slater said. "This is an example of government, industry and public working together for the good of all. Our action lays the groundwork for airlines, travelers and communities soon to enjoy the enormous benefits that this ground-breaking agreement will bring."
In today’s order, the department tentatively awarded 64 new weekly flights to American, Continental and Delta. These new services are all proposed to begin this year. The department also tentatively chose TWA and Hawaiian as new carriers in the U.S.-Japan market and tentatively awarded them each the seven weekly flights they had requested. In addition, DOT tentatively granted the initial 28 weekly flights for U.S.-Japan code-share services equally to TWA for its services with Delta and to Continental for its services with Northwest.
The department today also took final action to grant the initial 21 weekly flights for code-share services to Continental for its services with Northwest for service beyond Japan to Seoul, Korea (or, alternatively, Taipei, Taiwan), Singapore, and Bangkok, Thailand. There were no competing applications for these services.
Flights not awarded in this proceeding are reserved for allocation in the future.
The U.S. government estimates that, as a result of the agreement, U.S. passengers will enjoy gains of $1.2 billion over four years, measuring the value of additional service in a more competitive market. U.S. carriers will enjoy additional revenue of just over $4 billion over four years, due in part to an increase in U.S.-carrier market share. In addition, U.S. exports of aviation services will enjoy a net increase of almost $4 billion over the four-year period.
Carriers receiving awards and cities covered by the tentative decision would be:
A final decision on the tentative awards will be made only after a comment period in which any interested parties may file objections with the department. Objections are due in 10 days, and answers to objections seven days thereafter.
In addition to these new services, the new agreement allows for the first time extensive code-sharing between U.S. carriers, U.S. and Japanese carriers, and U.S. and third-country carriers on services between the United States and Japan and beyond Japan. The agreement removes all restrictions on the U.S.-Japan services of United Airlines, Northwest Airlines and Federal Express, who may operate from any U.S. gateway point to any point in Japan and beyond Japan to third countries without limitation on the number of flights.
All-cargo carriers Polar Air Cargo and United Parcel Service also gained new operating flexibility, creating valuable opportunities to transport cargo to destinations beyond Japan. In four years, an additional U.S. all-cargo company will be allowed to open service to Japan and to a point beyond Japan.
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