Japan and the U.S. will try to reach agreement on the draft of an "open skies" treaty next week, clearing the way for carriers including United Airlines and All Nippon Airways Co. to seek antitrust immunity.
The agreement would outline plans to erase government limits on flights between the two nations. Such market access is required by the U.S. before it considers international airline partnerships that coordinate prices and flight times.
"Open skies certainly opens up a lot of possibilities," said Michael Reynolds, a former acting assistant secretary at the U.S. Transportation Department. "You'd never see immunity given if there weren't open markets."
Antitrust immunity would let carriers act more like a single company. ANA and UAL could expand their partnership, while money-losing Japan Airlines Corp. could seek antitrust protection with Delta Air Lines Inc. or American Airlines, which have made competing alliance offers.