JAL to stay with American, end Delta talks: source
From Reuters US Online Report Business News | 2010-02-09 00:03:38
<div><p>TOKYO (Reuters) - Japan Airlines Corp &lt;9205.T&gt; has decided to maintain its partnership with American Airlines &lt;AMR.N&gt; in the Oneworld alliance and end talks with Delta Air Lines &lt;DAL.N&gt;, a source with knowledge of the matter said.</p><p>JAL's new management team, led by chief executive officer Kazuo Inamori, has decided that switching alliances would involve too much risk and could hinder the carrier's three-year restructuring plan, the source said.</p><p>Delta, which leads the Skyteam alliance team, and American have been courting JAL for months with offers of financial aid and close cooperation on international routes, looking to gain access to its vast network in Asia and benefit from the expansion at Tokyo's Haneda Airport.</p><p>JAL, which filed for bankruptcy last month, will make an official announcement of its plans to stay with American on Tuesday, said the source who declined to be named as the information is not public yet.</p><p>A JAL spokesman said nothing has been decided on the matter.</p><p>JAL had been leaning toward joining hands with Delta before filing for bankruptcy on January 19 and bringing in new management under the auspices of a state-backed fund, the Enterprise Turnaround Initiative Corp of Japan (ETIC).</p><p>But with the ETIC's exit from the investment planned in three years, JAL has decided that the risks involved in moving to Delta and the Skyteam, including a change in computer systems, would be too great, the source said.</p><p>The possibility that JAL and Delta would not be able to receive regulatory approval for anti-trust immunity also played into the decision, said the source.</p><p>JAL and American plan to apply for anti-trust immunity soon, the source said.</p><p>Anti-trust immunity allows airlines to work closely on pricing, flight scheduling and in other areas to boost revenue and lower costs. This is now a possible under the "open skies" treaty recently agreed to by the United States and Japan.</p><p>(Additional reporting by Mariko Katsumura; Editing by Edwina Gibbs)</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=68717207&bid=informcom" /></div><div id="copyright"><div>
Copyright 2010 <a href="http://www.reuters.com/finance">Reuters US Online Report Business News</a></div></div>
Related Video by 5min
Related Articles
- 3 Conditions That Unleash Extraordinary Returns MSN Money | 2010-03-12 15:21:29
- 1-Star Stocks Poised to Plunge: Brunswick? MSN Money | 2010-03-12 13:47:30
- What Investors Think About The Valspar Corp MSN Money | 2010-03-12 11:57:17
- 3 Reasons to Sell Rite Aid Today Motley Fool | 2010-03-12 11:06:59
- 5-Star Stocks Poised to Pop: Akamai MSN Money | 2010-03-12 10:31:27
- The Worst Stock Tip Ever MSN Money | 2010-03-12 13:07:27
Related Blogs
- A Google Employee Is Running Microsoft's Pub Valleywag | 2010-03-10 15:54:00
- ABC Quant launches risk management platform powered by Morningstar Hedgeweek News | 2010-03-10 02:08:27
- A Google Employee Is Running Microsoft's Pub [Conflicts Of Interest] Gawker | 2010-03-10 15:55:17
- Men's Wearhouse Beats Estimates, But I'm Not Buying Blogging Stocks | 2010-03-11 16:10:05
- Nudge Gives Way to Shove -- By: Rich Lowry NRO: The Corner | 2010-03-09 10:01:03
Related Video
- Time To Look At Your Investments CBS2 WBBM US & World Video | 2010-03-12 12:59:18