The Wall Street Journal reports that JAL might get split up. If so, this is obviously a play to get into that transaction.

Strategically, the NWA merger was supposed to make us #1 in Asia. It turned out that United's still a powerhouse, but we thought we could beat them in the long run.

With JAL in play, American could be United's replacement competition, or at least a tough competitor in their own right with United.

My tunnel vision tactical analysis (swag) is that it is very risky to throw Billions of Dollars at 10% interest into a company that is losing Billions to save the "benefits" of a NWA merger. Asia is a terrifically competitive market with LCC and Premium airlines that would be tough to beat from US soil. For one, we have to deal with the Department of Homeland Security and the travel restrictions they impose on non US Citizens. Then there is the issue of cheap foreign labor and government subsidies.

Yes, there is growth in Asia, but if we can't profitably fly from ATL to DAB or VPS, what makes us think Asia is such a profit center for us? There is a reason JAL's losing Billions.

Until we have a 100 to 150 seat aircraft plan that involves us keeping the revenues we take in by flying the airplane ourselves, I think Sailingfun is correct.

Maybe we're just going to make American over pay for a version of what we got for free in a stock swap.

In related news, listen to the Flight Ops 411 where they talk about, "flying beyond Tokyo." That podcast provides perspective on the Japanese market.