Subscribe to our free, weekly email newsletter!


Department of Justice opens skies for transpacific air cargo

“This is a welcome development,” said Richard Macomber, chairman of the National Industrial Transportation League’s (NITL) air transportation committee.
By Patrick Burnson, Executive Editor
October 07, 2010

The U.S. Department of Transportation (DOT) proposal to grant antitrust immunity to two air carrier alliances for services between the United States and Japan was greeted warmly by shippers yesterday.

“This is a welcome development,” said Richard Macomber, chairman of the National Industrial Transportation League’s (NITL) air transportation committee. “Capacity has been extremely tight lately, particularly for eastbound high-tech products. This can only help.”

While the proposal is subject to the Open-Skies aviation agreement between the two countries, analysts expect it to be signed.

According to DOT spokesmen, the department’s tentative decision would grant immunity to “oneworld” alliance members American Airlines and Japan Airlines, and separately to “Star Alliance” members United Airlines, Continental Airlines and All Nippon Airways. If the decision is made final, the members of each alliance would be able to more closely coordinate international operations in transpacific markets.

In yesterday’s show-cause order, the Department tentatively found that granting antitrust immunity to each alliance would provide passengers and cargo with a variety of benefits, including lower fares on more routes, increased services, better schedules, and reduced travel and connection times.  Each proposed alliance would enhance competition, particularly in transpacific markets.

On Dec. 11, 2009, the United States and Japan initialed an agreement that would establish an Open-Skies aviation relationship between the two countries once it is signed.  Under the new agreement, airlines from both countries would be allowed to select routes and destinations based on consumer demand for both passenger and cargo services, without limitations on the number of U.S. or Japanese carriers that can fly between the two countries or the number of flights they can operate.

Parties have 20 calendar days to comment and seven business days to file answers.  After this period ends, the Department will review all filings and then issue a final decision.

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The index ISM uses to measure non-manufacturing growth—known as the NMI—was 56.0 in June, which edged out May by 0.3 percent.

Regardless of the date or year, one thing is beyond consistent when it comes to key themes in freight transportation logistics: the state of United States highways and related transportation infrastructure is in an eternal state of chaos and disrepair.

The high-volume warehouse or distribution center that supports B2B, Omni-channel activities, direct-to-consumer shipments, and the Internet of Things all require a flexible and scalable supply chain in order to function at optimal capacity. The problem is that most of today's supply chains are made up of fragmented silos of information that compromise their ability to compete, be responsive to customer demands or seize new business opportunities.

As customers' demands constantly evolve, transportation and logistics (T&L) operations are being put under growing pressure to offer more efficient delivery services, while not compromising on customer service. Using findings from a research survey conducted among transport and logistics managers around the world, this report explores how a combination of mobile technology implementations for mobile workers, and process re-engineering efforts can elevate operations to the next level.

It's a fact - most best-of-breed WMS providers force you to pay every time you require a system change. Uncover five more dirty secrets many warehouse management systems providers don't want you to know. Download the white paper 5 Dirty Secrets of Warehouse Management Systems to discover these hidden truths and gain valuable information on considerations for evaluating WMS vendors.

Article Topics

News · Transportation · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA