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Japan and the United States late Friday reached an "open skies" deal removing restrictions on the number of flights between the world's two largest economies, the US side said.
The agreement, which is expected to impact US companies' bids for a slice of ailing Japan Airlines, will allow carriers to adjust flight numbers based on demand rather than preset limits.
"Once this agreement takes effect, American and Japanese consumers, airlines and economies will enjoy the benefits of competitive pricing and more convenient service," US Transportation Secretary Ray LaHood said in a statement.
He did not announce a date for the agreement to go into effect, saying that the "open skies" agreement -- the 95th for the United States -- still had to undergo formalities in both countries.
The number of flights between the United States and Japan has been set until now by a bilateral agreement reached in 1952, in the wake of World War II, and both sides have charged that it is outdated.
Under the existing agreement, Japanese carriers run 136 passenger flights each week between the countries -- 94 by Japan Airlines and 42 by rival All Nippon Airways -- while US carriers fly 296.
Japanese carriers argue that the number of flights is lopsided in favor of US airlines, with Japan Airlines saying it has contributed to its shaky finances.
US airlines counter that the current agreement has been fair if looking at flights by airline alliances rather than individual carriers.
In turn, US carriers say that their business has been hit by rigid Japanese rules on pricing, capacity and routing.
LaHood said that the Japanese promised "fair competition" as they expand international service at Tokyo's Haneda airport, which is Asia's busiest air hub by passenger numbers but is primarily used for flights within Japan.
Prime Minister Yukio Hatoyama's half-year-old government has vowed to expand Haneda as it is more conveniently located to Tokyo than Narita International Airport, now the chief gateway for flights from overseas into Japan.
US carriers had been seen as racing to seal deals with Japan Airlines before the open skies deal comes into effect, seeking to take advantage of the ailing carrier's network.
Japan Airlines' current partners led by American Airlines last week offered it a 1.1 billion-dollar lifeline, hoping to counter a bid by rival Delta Air Lines which is hoping the Japanese carrier switches allegiances.
