American Airlines will team up with British Airways and Qantas Airways fresh capital and expanded business ties, two sources said, alming to fight off a rival offer from Delta Air Lines.
The proposal, which will include a capital injection from American Airlines but may not bring money from either BA or Australia’s Qantas, comes as Delta holds separate talks to invest in JAL and woo it to a rival airline alliance.
JAL, which faces its second straight loss this business year, is weighing both offers as part of a larger restricting expected to include layoffs, route reductions and asset sales.
Both Delta and AMR Corp’s American are courting JAL to gain access to promising routes in Asia, including in Japan where Tokyo’s Haneda airport is undergoing a major expansion.
“A tie- up with Delta would give JAL a bigger benefit when it comes to North American routes,” said Ryouta Himeno, transport analyst at Mitsubishi UFJ Securities.” But by involving other carriers which are strong in other areas, American could have a good chance to keep JAL in One world and expand its reach in Asia.”
Shares of JAL rose 2.4%, bucking a weaker market.
Executives from JAL’s one world airline allowance partners American, BA and Qantas met JAL executives this week in Tokyo and told them of their plans to put together a joint offer, two people with direct knowledge of the matter said.
The American-led group will try to sell JAL on the idea that leaving Oneworld, which pools frequent flyer miles, integrates computer systems and feeds passengers between member airlines, would trigger a big loss of business for JAL.
Delta is in the rival Sky Team alliance, which has no major Japanese carrier. Fellow Sky Team member Air France – KLM has been named as a potential partner with Delta for an investment in JAL.Japan’s No.2 airline, All Nippon Airways Co, is part of Star Alliance, the third major grouping.
A BA spokesman said it was attempting to persuade JAL to remain part of One world rather than team up with Delta.
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