Japan's aviation liberalisation may stall under a new government as Gulf airlines use new rights

Japan has long been a standout in protecting its airline sector. It was only the surprisingly "big bang" of 2010 that provoked a new direction, as JAL was thrust into bankruptcy, an open skies agreement was signed with the US and the JDP government began pursuing a much more liberal bilateral policy, allowing new LCCs and establishing open skies agreements with regional neighbours. But now, under the new (but old LDP) Shinzo Abe-led government, things may change. The Gulf airlines may be the touchstone.

The country's long standing protectionism in bilateral air services had created the position that, of the world's five-largest air markets - the US, China, Japan, UK and Germany - it was Japan that received the least capacity from the major Middle East">Middle East network airlines.

When Emirates">Emirates and Etihad finally secured approval to fly to Narita">Tokyo Narita in 2010, they inaugurated services immediately.