Air Transport World

U.S.-Japan bilateral jousting continues.

U.S.-Japan bilateral jousting continues

There was never any doubt that Japan's Nippon Cargo Airlines would operate allcargo service to the United States. The only question was whether U.S. negotiators could extract several concessions in return for NCA's entry from the Japanese (ATW, 10/84).

The U.S. did well for itself. In return for NCA's startup May 8 the U.S. received: 1) Three new routes between Japan and the U.S., or new service to an existing point beginning April 1, 1986; 2) alternatively, one of the three services can be used for small package operations, but can't begin until 1987 (small packages are defined as 70 lbs. maximum); 3) new service from Guam and Saipan to several points in Japan and additional capacity to current points.

Work had already begun on full-scale revision of the U.S.-Japan bilateral when the issue of NCA arose. Japan has complained for years that the bilateral is unbalanced, and reflects the attitude of a military victor over an enemy. As in other trade matters, the U.S. wasn't happy with Japan and the commerce across the Pacific warranted more traffic rights and more flexible pricing. So it was in the interests of both sides to revise the bilateral. …

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