U.S. shelves proposal in aviation talks with Japan

The demand would have specifically helped isles

From staff and wire reports

The United States has shelved, at least for now, a new demand in aviation talks with Japan that would have provided 56 new flights a week between regional airports in Japan to Hawaii and other U.S. destinations.

However, sources close to the bilateral talks that continued in Washington today said negotiators are likely to approve 90 Japan-U.S. flights a week to be shared by Delta, Continental and American airlines, 70 more than they currently have.

The rights for "incumbent" U.S. carriers United and Northwest airlines and Federal Express would also be increased.

Hawaii tourism is expected to benefit from the pact, although details have yet to be finalized. Continental, for example, said it is seeking three additional daily Honolulu flights from Japan - one from Tokyo where it already has one daily flight, plus one from Osaka and one from Sendai.

American said any Japan service it gets would not be through Hawaii and Delta officials could not be reached for comment.

But Delta has said in the past it wants a code-sharing agreement with All Nippon Airways that would boost Hawaii-Japan business. And ANA, which has been flying Nagoya-Honolulu daily for just under a year, has said it would like Osaka-Honolulu and Tokyo-Honolulu routes.

Japan Airlines, the only Japanese carrier among the incumbents (airlines that were part of the original 1952 U.S.-Japan aviation agreement) is also expected to get broader U.S. rights.

The 90 flights that are awaiting final approval are for the nonincumbents, those airlines flying under exemptions to the 1952 agreement. The United States had asked for another 56 flights a week for them.

Putting aside the request for the 56 flights, however, allowed the negotiators to concentrate on a big remaining issue, takeoff and landing opportunities at Japan's congested major airports.

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Bloomberg News and Kyodo News service contributed to this report.