Delta out as JAL opts for American

09 Feb 2010

1

Tokyo: Japan Airlines (JAL) has shied away from an alliance with Delta Air Lines, the world's biggest carrier, and has opted instead to keep its ongoing partnership with American Airlines intact. Delta had made a strong bid in recent months to woo badly struggling JAL with offers of cash infusion and the attraction of linking up with its broad global network.

JAL, which is Japan's flagship carrier and also Asia's largest airline by revenues, said it will instead strengthen its partnership with American and apply to the US government for anti-trust immunity on trans-Pacific flights.

It would have been difficult for JAL to achieve anti-trust immunity with Delta as a partner, a member of the SkyTeam alliance, because of competition concerns. Anti-trust immunity is a must for any revenue-sharing relationship between US and Asian carriers.

Though there is no guarantee that American and Japan Airlines would secure antitrust immunity, either but the risks of failure were greater with Delta.

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