Japan Grants Landing Rights to United
The State Department announced Saturday that Japan will allow full landing rights in Tokyo to United Airlines, thus removing the last major obstacle to United’s $715-million takeover of the Pacific routes operated by Pan American World Airways.
United is expected to begin its new service Feb. 11, U.S. officials said.
Secretary of State George P. Shultz said Saturday’s agreement concluding the delicate negotiations with Japan was made just three days after President Reagan personally acted Wednesday to break a deadlock in the talks by meeting with Japanese Finance Minister Noboru Takeshita.
Reagan, during a largely social visit while Takeshita was in Washington, appealed for prompt resolution of the landing-rights issue. The Japanese had been reluctant to sign the accord on grounds that United’s new operations, which include plans for an 18% expansion of capacity, might put Japanese airlines at a disadvantage.
Deputy Assistant Secretary of State Jeffrey N. Shane, the chief U.S. aviation negotiator, told reporters at the State Department that the United States had firmly insisted that “the ability to substitute one airline for another we regard as a basic right.”
Presidents have long had the power to grant international air routes to U.S. carriers. The right to make substitutions, Shane said, “keeps pressure on airlines in those markets to serve the public well.”
The deal between Pan Am and United, the nation’s biggest airline, is the largest transaction of its kind in aviation history, he said. Although it was announced by both companies last April, it required approval first by Transportation Secretary Elizabeth Hanford Dole and subsequently by Reagan.
United had announced late last year that it would inaugurate its Tokyo service next Tuesday, but delays in winning Japan’s approval have moved the date back two weeks, officials said.
Illinois Sens. Alan J. Dixon and Paul Simon, both Democrats, recently wrote Reagan on behalf of Chicago-based United to urge U.S. economic retaliation if Japan refused landing rights to United. The senators said Reagan should “enact immediate sanctions” against Japanese airlines “to force the Japanese government to honor its obligations.”
In addition to Japan, United is taking over Pan Am routes to Taiwan, Singapore, Thailand, China, South Korea, the Philippines, Australia and New Zealand. Shane said that United’s applications for landing rights in those countries are “on track” and that no problems are foreseen.
Dole, meanwhile, said in a statement Saturday that once United begins operating on its new routes, “the consumer benefits I envisioned when approving the arrangement last year can be realized.”
“United can now become a strong competitor in the Pacific marketplace, and Pan American can concentrate its resources on its other international operations,” she said.
