MercoPress. South Atlantic News Agency

Japan airlines keeps partnership with American in Oneworld alliance

JAL's new management team led by chief executive Kazuo Inamori

Japan Airlines said it would keep its partnership with American Airlines in the Oneworld alliance, ending an attempt by Delta Air Lines to entice the bankrupt carrier to its rival SkyTeam group.

JAL, Asia's largest carrier by revenues, said it would file with American Airlines for regulatory approval for closer cooperation on trans-pacific routes under a recently signed “open skies” treaty between the United States and Japan.

The decision is a blow to Delta which had been courting the Japanese carrier for months with an offer of one billion USD in financial aid, eager to gain access to its vast network in Asia and position itself for an expansion of Tokyo's Haneda Airport.

Prior to its bankruptcy last month with 25 billion USD in debt, JAL was leaning toward Delta, attracted by the potential for cost cuts and revenue growth offered by its larger route network, especially in Asia, sources had said.

But JAL's new management team, put in place this month and led by chief executive Kazuo Inamori, decided switching alliances risked derailing its efforts to revive itself in three years with the help of a government-backed fund.

“We had a fierce debate over whether we should choose Delta and Skyteam for future profitability or stay in Oneworld and avoid incurring a loss from making a switch this year,” JAL Vice President Daiji Nagai told a briefing.

“Our conclusion was that we have to survive this year and the next year at all costs. There is no 'after three years' unless we stay focused on the restructuring programme in front of us.”

JAL joined Oneworld in 2007, one of three major alliances which pool frequent flyer miles and feed passengers between airlines. The other two are SkyTeam and the Star Alliance.

American had said that defecting to SkyTeam could drain JAL of about US$500 million in revenues during a transition period of 18-24 months and argued a Delta and JAL tie-up would stifle competition by creating a dominant player on transpacific routes