Formal negotiations began in early August with great hope for positive results following the apparent progress in the informal discussions. However, the American side appeared to have retreated to an earlier hard-line insistence on open skies. Moreover, the Japanese proposals were vague and also appeared to be less forthcoming than those made informally. These positions may have been intended to convince domestic audiences that negotiators for the two governments were making all-out efforts to achieve goals supported by local political interests. In particular, in the United States Northwest Airlines continues to lobby vigorously for open skies or nothing.
Many observers suggest that the carrier really wants nothing to change.
In this view, the airline wants to ensure its strong position in the U.S.-Japan market and, accordingly, is not relishing the additional competition that an agreement likely would bring. Despite official statements of wide gaps in positions, by the second round of formal talks attendees noted the possibility of a substantive breakthrough. By late September these optimistic reports had reached a climax, with articles in the trade press outlining the elements of a deal. At the same time, though, Northwest Airlines' public relations machine was operating in high gear. The carrier repeatedly ran full-page advertisements in leading U.S. newspapers and magazines opposing anything less than open skies.