MrDK

JAL dumps alliance with American Airlines in favor of Delta, SkyTeam

Japan Airlines (JAL) decided Wednesday to dump its partnership with American Airlines and its Oneworld alliance in favor of Delta and the SkyTeam group of carriers.

American together with a private equity firm had offered to invest $1.4 billion in JAL and strengthen cooperation between the two airlines, but JAL judged an alliance with Delta -- the world's largest airline -- would produce greater benefits.

The partnership with Delta will be officially announced by new JAL Chairman Kazuo Inamori on Monday.

To solidify the new alliance, JAL intends to apply to the Japanese and U.S. governments for antitrust immunity. The airline is also examining strengthening its international network with new routes from Narita International Airport to Detroit -- the hub for Northwest Airlines, acquired by Delta last year -- and from Haneda Airport to Amsterdam's Schiphol, SkyTeam partner KLM's home airport.

Delta and JAL cover many of the same routes, allowing the two airlines to better efficiency through schedule and fare collaboration. According to estimates by the state-backed Enterprise Turnaround Initiative Corp. of Japan (ETIC) -- overseeing JAL's restructuring process -- if JAL obtains antitrust immunity, the benefits of the Delta partnership could rise to some 17.2 billion yen. Even if the JAL-Delta deal does not receive immunity, the new partnership will result in benefits of around 9.2 billion yen -- still a significant jump from the 5.4 billion yen realized through the alliance with American.

Delta had previously offered a total $1.02 billion in financial support to JAL, including $500 million in new investment. As the leader in rebuilding the airline, however, ETIC apparently inclined to the belief that foreign financing was unnecessary for recovery, and elected to restrict any involvement with Delta to business collaboration.


JAL dumps alliance with American Airlines in favor of Delta, SkyTeam - The Mainichi Daily News

acl65pilot

Nada on the Official JAL website. It is close though.

beer

Sounds great!!! But, does adding NRT-DTW take away from our route?

acl65pilot

Beer;
Just wait for the details. I am willing to bet my pension that it is net positive for us.....

Oh wait..... crud..... what pension.....where did it go?

beer

Never had one to start with!!!

acl65pilot

You still have Social In-security

deltabound

<Insert obligatory "We are Borg" reference here>

I sure hope all these billions being spent eventually will turn into long term profits. I have high hopes; I'd hate to think that all this money is being spent for naught.

Nice editorial/news article about this whole thing here:

http://www.swelblog.com/articles/a-b...mpetition.html

cloudexplor911

Hi guys anyone knows some contacts in JAL management? I mean upper management?! Any help in getting some info about them would be great.

Thanks a million!!! pls message me if you have something.

cloud

shiznit

TROLL ALERT!!!!!

hawkesaurus

I know them all. They like people who can form sentences...sorry.