Illinois Groups Lobby For Open Skies With Japan

Concerned that the lack of air competition between Chicago and Japan is negatively impacting business and inconveniencing travelers, a coalition of corporations, convention and visitors bureaus, civic, trade and labor organizations is lobbying Washington for open skies with Japan.

Spearheaded by the Chicagoland and Illinois State Chambers of Commerce, the Midwest-Asia Aviation Coalition is lobbying Congress, the White House, Department of State, Department of Transportation and any other government entity that can influence the issue, according to Bob Kettlewell, spokesman for the group. In recent weeks, the coalition has presented its views before a U.S. House Aviation subcommittee and convinced 19 of Illinois' 20-member Congressional delegation to send a joint letter to the White House urging open skies.

Citing an economic impact analysis conducted by Arthur Andersen, Kettlewell noted that the current 20 weekly flights between Chicago and Tokyo comfortably can accommodate 520,000 passengers a year, leaving as many as 200,000 looking for alternative routes to and from Japan. Demand for air travel between O'Hare and Tokyo is likely to grow from approximately 470,000 passengers in 1994 to 720,000 by the year 2000, the study concluded.

However, there won't be any additional flights until Washington can negotiate for them in the bilateral talks now underway with Japan. But rather than simply negotiating for more flights between the two countries, the coalition would prefer that Washington negotiate an open skies agreement with Japan that would allow any carrier to expand according to market demands, rather than artificial regulatory barriers.

The existing limits on Chicago-Tokyo traffic were instituted as part of a bilateral agreement crafted in 1952. If restrictions were removed, the number of trans-Pacific passengers flying through O'Hare could more than double by the year 2000, bringing to the Midwest as much as $80 million in economic impact, the study said.

If the restrictions aren't lifted, the study warns that Illinois will likely suffer a reduction in the rate of direct Japanese investment it attracts, perhaps losing as many as 55 to 110 Japanese companies that otherwise would be attracted to the state; $500 million to $1 billion in Japanese investment in property, plants and equipment; and between $12.1 million and $30.3 million in retail, hotel, food service, entertainment and transportation spending by travelers.

The coalition represents one of the first issues that has joined together Chicago Mayor Richard Daley and Illinois Gov. Jim Edgar; the Chicago and Illinois chambers; and the 19 members of the Illinois Congressional delegation on the same side.