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Breaking: Japan Press Rumors Say JAL Deal Done with Delta, Dumping American

January 28, 2010 at 4:30 PM | by | Comments (0)

Having finally filed for bankruptcy Tuesday after what seemed like forever, Japan Airlines is free to look toward long-term restructuring rather than short-term "please god let us operate another week" revenue generation. The next big question was how the Japanese flagship airline would decide in the high-stakes poker game between American and Delta, both of whom have been heavily courting JAL—American to keep them in oneworld and Delta to get them to switch to SkyTeam. Now there are reports precolating out of Japanese media, and we haven't seen them on any of the wires yet, so you're warned, that JAL has just closed the deal with Delta.

If true, this would be a huge victory for Delta and a devastating blow for American. It's not so much JAL itself that's so valuable - the airline, after all, is bankrupt - as much as it is the passengers that JAL flies and connects. The US-Asia market is an extremely lucrative one, particularly and because of premium travel. Partnering with JAL means more passengers flying more connections in higher classes, and that, more than anything else, is what both airlines are after. It looks like Delta might have won, with the deal to be announced on Monday.

Already the world's largest airline, Delta would get to lock in a huge new market while—if you believe their hype—avoiding antitrust problems. If it's also true that they're about to lock down New York, that has the airline dominating the Tokyo-New York route and its treasure trove of business class flyers. Meanwhile United already has their partnership with Japanese airline ANA, so they get to sit on the sidelines and bask in their stability. American takes a gut punch.

It's long been obvious that the financially sensible move, minus any bribes from oneworld, would be for JAL to make the switch. That lends huge credibility to what otherwise might be just a rumor, and we'll obviously make sure you know one way or another.

[Photo: Miisuke / Wiki Commons]

Related Stories:
· JAL dumps alliance with American Airlines in favor of Delta, SkyTeam [Mainichi]
· JAL Coverage [Jaunted]
· Airline Industry [Jaunted]

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