Tokyo and Washington agreed Friday to liberalize their civil aviation markets under an open skies accord, the first of its kind for Japan with another country, the two governments said in a statement.
They reached the deal at the end of the latest five-day round of bilateral negotiations in Washington. The pact will allow Japanese and U.S. air carriers to apply for antitrust immunity.
The move is certain to heighten the fierce competition between U.S. air carriers Delta Air Lines Inc. and American Airlines Inc. as they try to woo cash-strapped Japan Airlines Corp. into their respective folds.