Jaunted

In response, American asked federal regulators to preemptively nix the move, insisting that it would put too much of the US-to-Tokyo-Narita market in SkyTeam's hands. Virgin Atlantic then got into the mix—for reasons that, as near as we can tell, involve nothing more than gleeful spite—by complaining to the Department of Transportation that American is in no position to complain about monopolies when the American/British Airways alliance dominates Heathrow.

Just to give you a sense of the stupefying maneuvering and calculations involved, here's an industry insider trying to unpack what's going on:

Regarding the proposed joint venture between Japan Airlines and Delta, American's reply to Virgin highlights WHY they are so desperate to hang onto JAL. If JAL goes with Delta/Air France, the new grouping, when combined with United/ANA/Continental, will control 60% of the US-Japan market, which leaves oneworld with just 6%. Given the change in seat market share – based on American's numbers and our own work – this suggests that JAL benefits more with a DAL/AF matchup. Of course, the benefits must be weighed against switching costs, which include management in addition to financial costs.

So far JAL's leaking that they're sticking with oneworld. That could just be a negotiating stance to get Delta to sweeten the pot, but who can tell? We'll obviously keep an eye on this, if only for the humor value.

[Photo: St Stev / Flickr ]

Related Stories:
· JAL's High-Stakes Game with American and Delta [YYY]
· Japan Airlines [Jaunted]
· Airline News [Jaunted]