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Japan-UAE bilateral agreement expands access, welcoming Gulf carriers to serve national interests

Analysis

Expanding bilateral air services agreements to boost tourism, business and GDP - as Japan is doing - is not a new strategy; yet many states still persist in determining market access around the interests of flag carriers. Japan's recent revision of its agreement with the United Arab Emirates, and forthcoming revision with Qatar, contrasts with the regulatory approach of several states (including the Japan of merely a couple of years ago) and reflects on Japan's recent wave of liberalisation to boost visitors to the country. This is part of an effort to stem a declining economy and population - an effort that has most prominently manifested itself in the country opening the door to a flurry of low-cost carriers this year.

While bilateral air services agreements are classically (and archaically) based on reciprocity of airline interests - so that inertia is the dominant force - with Japan and the UAE and Qatar, Japan is doing all of the "giving" and none of the taking; its carriers do not serve and have no intention to serve the Middle East.

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