TokyoTomo Travel Guide

Japan Airlines decided on February 9 to keep its partnership with American Airlines and remain in the Oneworld alliance. JAL’s public relations office explained that it is the best possible scenario for the airline to continue to reinforce its cooperative ties with its present alliance partner in order to stabilize and rejuvenate its business conditions and turn around the company without any further delay. In the days ahead, both JAL and American Airlines are expected to apply to the respective regulators for the anti-trust immunity (ATI) on the Pacific route. While American Airlines will file for ATI with the US authorities by mid-February, JAL plans to proceed with its filing “in consultation with the local authorities concerned.”

Following the decision by Japan Airline to stay with American Airlines, the airline (AA) issued a comment quoting Gerald Arpey, American Airlines’ Chairman and CEO, as emphasizing, “The decision this time is vitally important for both Japan Airlines and Japanese government and it is also the best possible scenario for JAL’s stakeholders, Japan’s own national interests and valued customers traveling between Japan and USA.” “American Airlines is looking forward to providing Japan Airlines with necessary support for the ongoing rehabilitation,” added Arpey. With regards to filing of the ATI, the anti-trust immunity, he mentioned that American Airlines will start to prepare for the applications within the next few days in coordination with JAL’s new management.

Meanwhile, Delta Airlines commented that it will continue to remain as the largest airline serving between USA and Asia, operating direct flights to 10 destinations in USA, nine in Asia and two in Micronesia from Tokyo Narita, which is its Asian hub. It expects the valued customers to continue to use its excellent route network to USA and Asia from Japan, added Delta.

Source: Travel Vision

Travel Vision Inc. provides information on the travel industry in Japan via "Daily Travel Vision", a Japanese-language e-mail newsletter, and the "Travel Vision" website. There are nearly 110,000 people working in the Japanese travel industry, and Travel Vision is proud to be bringing travel news to more than 30,000 people through Daily Travel Vision.

Today, Japan Airlines (JAL) announced the decision to strengthen its partnership with American Airlines (AA). The carriers, both members of the oneworld alliance, will jointly apply to the U.S Department of Transportation (DOT) and the Ministry of Land Infrastructure, Transport and Tourism of Japan (MLIT) for the approval of antitrust immunity (ATI) on transpacific routes.

Upon receiving the approval from the relevant authorities, JAL and AA intend to enter a joint business venture which will enhance their scope of cooperation on the routes between the United States and Japan, through adjustments to their respective networks, flight schedules, and other business activities, allowing both carriers to better complement each other to develop and offer competitive products and quality service to their customers.

The JAL Group Chief Operating Officer and president, Mr. Masaru Onishi said on this occasion: “We have analyzed this issue in great detail, and we are excited at the prospects in terms of the convenience and benefits for our customers. We also 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. We certainly look forward to a deeper, more mutually-beneficial relationship with our long-time partner.”

As JAL undergoes the process of reorganization, it will seize the opportunity presented by this partnership to strengthen its network and further improve its offerings. From hence forth, in addition to the joint business agreement with AA, JAL will also fortify its relationships with other partners in the oneworld alliance, so as to provide customers a comprehensive range of products and services, and become once again, the airline of customer’s choice.

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American Airlines, along with its Oneworld alliance partners, British Airways (BA), Cathay Pacific Airways (CX) and Qantas Airways (QF), compiled a proposal to offer Japan Airlines under a restructuring plan over two billion US dollars (approx. 180 billion yen) in commercial benefits over the next three years. Meanwhile, American Airlines raised its offer of investment in JAL up to 1.4 billion US dollars (approx.128 billion yen) from its initial proposal of 1.1 billion US dollars (approx. 100 billion yen), should the investment be requested by JAL or the Japanese government. Tom Horton, EVP, Finance and CFO, AMR Corp. and American Airlines, told a press meeting on January 12 that it is high time for JAL to focus its strategy on well-balanced sources of revenue, stressing that Oneworld alliance members, by joining forces, will bring more benefits to JAL.

Two billion US dollars worth of commercial benefits that the business partnership with Oneworld would bring JAL include 1.5 billion US dollars if JAL stays within Oneworld, 300 million US dollars from anti-trust immunity (ATI) with American Airlines and another 200 million US dollars from joint venture with British Airways. Initially, American Airlines intended to invest in JAL more than 1.1 billion US dollars, but sweetened its proposal, enabling JAL to benefit from twice as much commercial benefits over three years compared to the initial cash investment offer, explained Horton, stressing the merits of the new proposal. Also, Qantas Airways, having low cost carrier (LCC) JetStar Airways, under its umbrella, proposed to provide JAL the accumulated know-how of its two-brand strategy.

Source: Travel Vision

Travel Vision Inc. provides information on the travel industry in Japan via "Daily Travel Vision", a Japanese-language e-mail newsletter, and the "Travel Vision" website. There are nearly 110,000 people working in the Japanese travel industry, and Travel Vision is proud to be bringing travel news to more than 30,000 people through Daily Travel Vision.