Tag: Turf Wars

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More JAL Poker: American Sees Delta's $1B Bet And Raises A Million More

December 4, 2009 at 4:04 PM | by | Comments (0)

The game thus far: Japan Airlines let it be known that they would maybe consider leaving oneworld for SkyTeam - thereby devastating American's presence in Tokyo - if the price was right. Delta almost immediately offered $1 billion plus transition expenses if JAL would make the switch. Fast forward a few weeks later and American has made their counteroffer - $1.1 billion plus JAL wouldn't have to worry about transition expenses because there wouldn't be any transition.

It's not a "far superior" offer, which is the soundbite that American CFO Tom Horton is handing out. But we checked our calculators, did a little subtraction, and it does indeed seem to be straightforwardly more money. Plus JAL would be spared not only transition costs but all of the non-monetary problems that were on display during Continental's move to Star Alliance. Here are a few more details of American's counteroffer:

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Delta Offers JAL a $1 Billion Bribe to Unfriend American Airlines

November 19, 2009 at 1:21 PM | by | Comments (0)

We promised you last week that the playground hair pulling fight between Japan Airlines, American Airlines, Virgin Atlantic, and Delta—where JAL may or may not decide to dump American Airlines/oneworld in favor of Delta/SkyTeam—was going to get more interesting. That's exactly what happened this morning, when Delta decided to put an eye-popping $1 billion on the table to entice Delta into switching.

Yowsers! Let's look at what went down...

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Japan Airlines Triggers International Hair-Pulling Fight Among Airlines

November 13, 2009 at 5:19 PM | by | Comments (0)

We've been telling you for the last few weeks that the three-way Southwest/Jetblue/AirTran turf war happening at Boston-Logan was the most entertaining insidery airline story on the horizon. Now it looks like we may have called that putt a little too early. The international sniping going on between Japan Airlines, American Airlines, Virgin Atlantic, and Delta is beginning to resemble a grade school playground, with back-and-forth insults, foot stomping, and running-to-the-teacher petulance. Awesome.

The background is that JAL is bleeding money and has had to discontinue 8 international and 8 domestic routes. This has put their oneworld alliance with American in a precarious situation. It's obviously not working for JAL and so they've raised the possibility of switching alliances and joining Delta in SkyTeam.

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