Occam's Razor
Risible...ALWAYS risible
- Joined
- Jun 28, 2005
- Posts
- 2,551
Doesn't NWA have the Japan cabotage? I heard this is a holdover from WW2 and it can't be grandfathered. So if NWA loses its identity, or is acquired like Eastern/Pan Am then the cabotage expires(and I believe they are the only one right now who has this). That would seem to be worth its weight in gold if true.
No cabotage.
NWA has 5th Freedom rights in Japan. They allow NWA to pickup pax on Japan and carry them to another country (other than the US).
Successorship of the rights were "clarified" in 2000 when the "B" slots were designated for the second runway at NRT. Under the old terms, NWA had automatic "beyond" rights for any flight it chose to add TO Japan. The "B" slots and KIX slots were distributed and the terms of NWA's (and UAL's) 5th rights were refined.
The end result is the rights are considered a "transactable" asset if operated by NWA...or it's assigns (a legal term meaning, "Whoever they say"). NWA then used the rights as collateral for the Revolving Line Of Credit ($1.6-billion). That could not have been done if the banks thought the rights would not survive a merger.