-T / T / +T | Comment(s)

Tuesday, February 9, 2010

JAL Picks American over Delta

By Ramon Lopez/Editor, AT’s Daily Brief

Japan Air Lines will maintain its partnership with American Airlines in the Oneworld alliance, scuttling an attempt by Delta Air Lines to entice the bankrupt carrier to its rival SkyTeam group.

JAL said it would file with American Airlines for regulatory approval for closer cooperation on transpacific routes under a recently signed "open skies" treaty between the U.S. and Japan. The decision is a blow to Delta. which had been wooing JAL for months with an offer of $1 billion in financial aid,.

Prior to its bankruptcy last month, JAL was reportedly leaning towards Delta.  But JAL's new management team apparently decided that switching alliances risked derailing its efforts to revive itself in three years.

American Airlines CEO Gerard Arpey is pleased that JAL will stick with American and the Oneworld Alliance.

“We respect that this was an important decision for Japan Airlines and the government of Japan, and we believe they have made the right choice for JAL’s many stakeholders, for Japan’s national interests and for consumers traveling between Japan and the United States,” said Arpey.

 “When Oneworld executives and I recently met with JAL Chairman Dr. Kazuo Inamori and President Masaru Onishi and their team, we reiterated our commitment to support JAL on its path to success. We stand firmly by that commitment, and look forward to working closely with JAL to support its restructuring efforts.”

That support starts with being a valued and equal partner in oneworld, a collection of 11 of the finest airline brands in the world that offers JAL superior network presence in the markets that matter most.  For example, for connections from Japan to the top markets within the Americas, Europe, Asia and Australia, in 16 of those 20 markets oneworld provides JAL with a stronger network presence than any other alliance. “The quality of Oneworld is unrivaled,” Arpey said.

American and JAL will now focus on building a joint venture that can offer JAL significant revenue growth beyond the stability that oneworld offers today.

“In the coming days, American will work with JAL’s new management team to finalize a joint application for trans-Pacific antitrust immunity (ATI) that will be filed with the U.S. Department of Transportation (DOT),” Arpey said.

“American remains confident that the ATI application will meet DOT’s pro-consumer and pro-competition criteria for granting ATI, which will pave the way for our two airlines to operate a joint venture between U.S. and Japan. With immunity, both carriers may cooperate more closely and generate new revenue while providing better travel choices for customers,” he added.

Ramon Lopez also serves as editor-in-chief of Air Safety Week; he has been covering air safety for more than three decades (rlopez@accessintel.com).

www.aviationtoday.com/ramon_lopez_bio.html