U.S.-Japan Record of Discussions of August 21, 2019

Delegations representing the United States of America and Japan met in Washington, D.C., on January 24-25, 2019, to discuss matters relating to further developments of the aviation relations between the countries. The delegation lists are shown in the Attachment. The consultations were conducted in the most friendly and constructive atmosphere.

The delegations wish to record the following:

1. Haneda International Airport

1.1       The delegations intend to recommend to their governments the proposed amendment to the Schedule to the Civil Air Transport Agreement between the United States of America and Japan, signed at Tokyo on August 11, 1952, as amended (the “Agreement”), set forth below.

Section 3 of the Annex to the Memorandum of Understanding between the United States of America and Japan (“2010 MOU”), effected by exchange of notes at Yokohama on November 13, 2010, as amended, should be deleted and replaced with the following:

“Section 3

Access to Tokyo International Airport (Haneda)

The following shall apply to international air transportation prescribed in the Annex that includes Tokyo International Airport (hereinafter referred to as “Haneda”):

1. The slots available for scheduled combination service by the designated airlines of each Party shall be limited to a total of seventeen (17) pairs of slots during daytime hours between 0600 and 2255 hours (local time) and one (1) pair of slots during late night and early morning hours between 2200 and 0655 hours (local time); extra sections shall not be permitted;
2. Slots for scheduled combination service shall not be used for all-cargo service; and
3. Airlines of each Party, in the aggregate, may operate no more than six hundred (600) one-way charter flights per year.”

1.2       The delegations intend to recommend to their governments that the proposed amendment enter into force through an exchange of diplomatic notes between the governments. The delegations intend to recommend to their governments that this exchange only occur after new slots are made available at Haneda as a result of expansion to be realized by the Ministry of Land, Infrastructure, Transport, and Tourism after consultations and reaching a common understanding with affected local governments and residents, and after the U.S. Department of Transportation’s determination that the new slots reasonably meet U.S. airlines’ operational needs. The delegations expressed the intent of their aeronautical authorities to apply the terms of this amendment on the basis of comity and reciprocity at least until the initial allocation of slot times by Japan Schedule Coordination to U.S. carriers on October 31, 2019.

1.3       The U.S. delegation took note of the continued physical and operational constraints at Haneda that prevent all-cargo airlines from establishing operations at the airport.

1.4       The U.S. delegation further noted the prominence of Haneda as an international gateway to Japan, and the need to create a liberalized slot-trading regime for U.S., Japanese, and other international carriers serving the airport. The U.S. delegation recalled that Japan signed the 2010 MOU liberalizing the aviation relationship between the United States and Japan, thereby committing to Open Skies principles, and noted the importance of implementing a fully liberalized slot-trading regime at Haneda no later than 2022.  The Japanese delegation noted the intention of the Civil Aviation Bureau of Japan (JCAB) to consider the following two measures to be taken simultaneously for further liberalization at Haneda, through which U.S. airlines would have the ability to obtain slots from any other airline, and to be implemented in 2022:

1. Lifting the limitation on the number of slot pairs for the designated airlines of the United States and Japan, subject to the following operational conditions:

• the slots are used for scheduled combination service only;
• the slots that are used during daytime hours between 0600 and 2255 hours (local time) are within the total number of slot pairs designated for international scheduled service; and
• the slots that are used during late night and early morning hours between 2200 and 0655 hours (local time) are within the total number of slot pairs designated for international scheduled service.2.

2. Applying a slot trading regime at Haneda that gives carriers the ability to swap, transfer and lease slots based on the IATA Worldwide Slot Guidelines.

The U.S. delegation took note of this explanation and the delegations underscored their expectation that this topic will be of primary importance in the future negotiations to commence no later than January 2021.

2. Other Matters

2.1       The delegations confirmed that airlines receiving new slot pairs under the proposed amendment would not engage in marketing, sales, or any other public disclosure relating to their new flights prior to the date on which the U.S. Department of Transportation issues its final order on the allocation of slot pairs to U.S. airlines, expected to occur no later than August 2019.

2.2       The Japanese delegation explained to the U.S. delegation that in response to growing public concern in Japan regarding objects falling from aircraft in flight, any and all airlines, including foreign airlines serving Japan, will be required to establish a system that ensures the implementation of measures to prevent objects falling from aircraft in flight.  The Japanese delegation appreciated the acknowledgement and cooperation from the U.S. delegation on its introduction of the measures to cope with this issue.  The U.S. delegation noted the explanation of the Japanese delegation and confirmed that the U.S. aviation safety authority intends to continue to work with its Japanese counterpart regarding these matters.

2.3       The U.S. delegation noted its continuing interest in seventh freedom traffic rights for all-cargo service.  The delegations confirmed that their governments would continue to facilitate the exercise of change of gauge and fifth freedom traffic rights to provide the greatest level of flexibility for all-cargo service.

2.4       The delegations underscored their intention to hold consultations, after the end of the 2020 Tokyo Summer Olympic Games and commencing no later than January 2021, to discuss various matters, including progress of the implementation of the amendment, as well as a detailed post-2020 framework at Haneda. The U.S. delegation also noted that any future proposal to increase slot allocations for international service at Haneda should include a proportion of slots for U.S. airlines, accounting for the anticipated desires of U.S. airlines to participate in the future growth of the airport and aviation market.

Signed at Tokyo on August 21, 2019

FOR THE DELEGATION OF  THE UNITED STATES OF AMERICA: Hugo Yon
FOR THE DELEGATION OF JAPAN: Jotaro Horiuchi

U.S. Delegation List

U.S. Government

Hugo Yon
Head of Delegation
Deputy Assistant Secretary for Transportation Affairs
U.S. Department of State

Aaron P. Forsberg
Acting Director
Office of Aviation Negotiations
U.S. Department of State

Paul Fishbein
Civil Aviation Officer
Office of Aviation Negotiations
U.S. Department of State

Jesse Tampio
Attorney-Adviser
Office of the Legal Adviser
U.S. Department of State

Benjamin Taylor
Assistant Director, International Aviation
U.S. Department of Transportation

Jennifer Thibodeau
Attorney Advisor
U.S. Department of Transportation

Eugene Alford
International Trade Specialist
U.S. Department of Commerce

Lauren Huot
Economic Officer
Office of Japanese Affairs
U.S. Department of State

Michael Daschbach
Deputy Chief, TEPU Unit
U.S. Embassy, Tokyo

Interpreters:

Kaori Marshall
Sanae Sasajima Carr

U.S. Industry Representatives (Observers)

Cecilia Bethke
Airlines for America (A4A)

Robert Wirick
American Airlines (AA)

Nathan Gatten, AA

Shawn Gray
Allied Pilots’ Association (APA)

Alexander “Sascha” Van der Bellen
Airline Pilots’ Association (ALPA)

David Semanchik, ALPA

Matthew Cornelius
Airports Council International (ACI)

Robert Letteney
Delta Air Lines (DL)

Sarah Prosser
FedEx Express (FX)

Margaret Cummisky
Hawaiian Airlines (HA)

Dan Weiss
United Airlines (UA)

Ann Gravatt
Port of Portland

Japan Delegation List

Government of Japan

Mr. Jotaro Horiuchi
Head of Delegation
Assistant Vice-Minister for International Aviation
Minister’s Secretariat
Ministry of Land, Infrastructure, Transport and Tourism (MLIT)

Mr. Toshiyuki Onuma
Director, International Transport Division
Civil Aviation Bureau (CAB), MLIT

Mr. Kenichi Takahashi
Senior Air Talks Officer
International Transport Division
CAB, MLIT

Ms. Sanae Mizuta
Senior Air Talks Officer
International Transport Division
CAB, MLIT

Mr. Mitsuhiro Yamamura
Chief of Planning Section
International Transport Division
CAB, MLIT

Mr. Tetsuya Mori
Counselor for Transportation Policy
Embassy of Japan in the United States of America

Interpreter:
Ms. Yohko Mitchell

Japanese Industry Representatives (Observers)

Mr. Tadashi Matsushita
Vice President
Alliances & International Affairs
All Nippon Airways Co.,Ltd. (ANA)

Mr. Sadanori Koike
Senior Manager
Network Planning, ANA

Mr. Naohiro Terakawa
General Manager
Washington D.C. Office, ANA

Mr. Yasushi Noda
Vice President
International Relations and Alliances

Japan Airlines Co.,Ltd. (JAL)

Mr. Yoshiya Omura
Assistant Vice President
International Relations and Alliances, JAL

Ms. Ryoko Hasegawa
Assistant Manager
International & Governmental Affairs
Nippon Cargo Airlines Co.,Ltd.