I thought it was interesting that they could be seeking a cash injection from AMR.
Quote:
Struggling Japan Airlines Corp. has entered talks with Air France-KLM over a capital tie-up, a newspaper said Saturday.
Asia's biggest airline hopes to expand its businesses in Europe via the capital alliance with Air France-KLM, according to the Yomiuri newspaper, Japan's top-selling daily. The report cited no sources and officials at the Japanese airline, known as JAL, could not be reached for comment Saturday.
JAL said Friday it was considering various tie-ups with a wide variety of potential partners but nothing had been decided.
JAL is in the midst of major restructuring as the airline incurred its biggest-ever quarterly net loss of 99 billion yen ($1 billion) in the three months to June. It has forecast a net loss of 63 billion yen for the current fiscal year to March 2010, and plans to cut the number of flights and slash costs by 53 billion yen during the current fiscal year and another 100 billion yen in the next fiscal year.
Apart from Air France-KLM, JAL is also seeking a bigger capital injection from Delta Air Lines.
Delta -- the world's biggest airline operator -- is considering making a cash infusion of a couple hundred million dollars to aid JAL, according to a person briefed on the talks Friday.
In exchange for the infusion, the person said Delta could get a stake in JAL, an expanded presence in Japan and coveted access to the closest airport to the Tokyo business center. Delta could become a top shareholder of JAL.
But the talks between JAL and Delta were in their preliminary stage, and it was unclear what form a partnership between the two airlines might take, said the person, who asked not to be identified by name because of the sensitivity of the discussions.
Japan's Nikkei business daily quoted a senior JAL official Saturday as saying the tie-up with Delta would be difficult due to the Japanese airline's alliance with American Airlines.
JAL has a codeshare agreement with American Airlines as part of its participation in the oneworld alliance. Delta's SkyTeam alliance currently doesn't have a Japanese partner.
Instead of Delta, JAL may seek a capital injection from American Airlines, the Nikkei said.
Among U.S. carriers, Atlanta-based Delta has a relatively large Japan presence by virtue of its acquisition last year of Northwest, but its market share there is still dwarfed by that of Japanese carriers. In the Tokyo market, Delta operates from Narita Airport, the main international airport.
Delta has not been allowed to serve Haneda Airport, a mostly domestic airport that is much closer to the center of Tokyo. The U.S. and Japanese governments have been in talks about air service between the countries, though it is unclear how those talks will turn out.
What this is, is either a great coup de grace of DAL striking a major blow to the Oneworld Alliance, or making AMR show their hand, commit a ton of money to JAL that they do not have, and in effect weakening them to a point where they need to sell the JFK T-9 to DAL who is more than willing to take it off their hands.
What this is, is either a great coup de grace of DAL striking a major blow to the Oneworld Alliance, or making AMR show their hand, commit a ton of money to JAL that they do not have, and in effect weakening them to a point where they need to sell the JFK T-9 to DAL who is more than willing to take it off their hands.
Either way, check mate.
Exactly. You see, JAL is really the only link to Asia that AA has. If DAL gives them $$ and they leave the Oneworld Alliance for Skyteam, AA loses Asia and a lot of future revenue.
What this is, is either a great coup de grace of DAL striking a major blow to the Oneworld Alliance, or making AMR show their hand, commit a ton of money to JAL that they do not have, and in effect weakening them to a point where they need to sell the JFK T-9 to DAL who is more than willing to take it off their hands.
Either way, check mate.
Ya, right..... I would never underestimate AMR, now stop dribbling on your shirt, if you want to come see our terminal please stop by! I will be there tomorrow afternoon!
Ya, right..... I would never underestimate AMR, now stop dribbling on your shirt, if you want to come see our terminal please stop by! I will be there tomorrow afternoon!
AA
So tell me, what would you protect if you were Arpey? A terminal that you cannot get tenants in to, or your Alliance. I think that DAL is playing hard ball.
DAL is definitely playing hardball, but I wouldn't count AMR out of the game. They need JAL, and won't let it go easily. I don't think it will come to selling T8, AMR can finance some assets(sell that AAdvantage program) if they are desperate for cash.
On another note, this is going to spark off some serious global alliance bidding wars and wont end with JAL.
Last edited by Flyby1206 : 09-12-2009 at 06:55 PM.
I kinda think AMR has something up their sleeve to be released in the next month or so to make Delta envy for. I hope at least...wishfull thinking. But if they dont do anything over a few years they might be checkmate.
The only thing AMR could have up their sleeves is a Chapter 11 filing.
They should have done it in 2003 and gotten it over with, but the stubborn insistence of their management to "Maintain control" has now painted them into a corner they can not easily get out of.
Their current strategy of "Shrinking to profitability" is one that will not work and history is littered with examples of failed airlines that attempted to do just that.
DL probably will end up with T-9 as Arpey and his team make a "Strategic Retreat" from the largest air transport market in the world.
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Interesting: JAL/KLM/DAL/AMR
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