Japan Air System plans to transfer all international flight operations to its wholly owned subsidiary Harlequin Air by fiscal 2000 to allow JAS to focus on domestic flights, industrial sources said Wednesday.JAS decided to transfer its international flight services to the more cost-competitive subsidiary to cope with stiffening global price-cutting competition, the sources said.Harlequin, also based in Japan, is keeping its average wage level lower than its parent by employing many foreign pilots. The recession has sharply cut into the number of airline passengers industrywide, prompting airlines to cut fares even more.JAS initially plans to let Harlequin operate two regular flights from Narita airport to Xian and Guangzhou in China at the beginning of next March, the officials said.

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