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Japan Airlines to stay in alliance with American Airlines
Communications    2/9/2010 6:15:00 PM
 
TOKYO, Feb 9 (KUNA) -- Japan Airlines Corp. (JAL), which last month filed for bankruptcy protection, said Tuesday it will maintain its existing alliance led by American Airlines Inc. and end negotiations to link with the world's biggest carrier Delta Air Lines Inc.
"JAL announced the decision to strengthen its partnership with American Airlines," Asia's largest carrier by revenues said in a statement. The carriers, both members of the oneworld alliance, will jointly apply to the US Department of Transportation and Japan's Ministry of Land Infrastructure, Transport and Tourism for the approval of antitrust immunity on transpacific routes under a new US-Japan "open skies," according to JAL.
"We firmly believe that the advantages of this development with American Airlines can strongly support JAL at a time when we are striving towards the revival of our business, which we are determined to achieve," JAL president Masaru Onishi in the statement. In addition to the joint business agreement with American Airlines, JAL will also fortify its relationships with other partners in the oneworld alliance, the statement added.
Japan's ailing flag carrier filed for court protection on Jan. 19 with total group liabilities topping JPY 2 trillion (USD 22.4 billion) and currently undergoes a state-led restructuring process under a three-year plan.
The airline had been in talks with US carriers American and the rival Delta-led SkyTeam group for a potential alliance. Despite its financial problems, JAL remains attractive for both American and Delta due to its lucrative Asian routes.
American Airlines -- the second-largest carrier -- and its oneworld partners said last month that they are ready to investment in JAL to USD 1.40 billion to keep the Japanese carrier within their group, while rival Delta and its SkyTeam partners have offered a USD 1.02 billion funding package to JAL to lure the carrier from oneworld alliance.
Oneworld includes British Airways Plc, Qantas Airways Ltd. and Cathay Pacific Airways Ltd. The SkyTeam alliance includes Delta, Air France KLM, Aeroflot, AeroMexico, Alitalia, China Southern Airlines, Czech Airlines and Korean Air. (end) mk.ajs KUNA 091815 Feb 10NNNN
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