Voice Of Reason
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Japan Air sticks with Qantas in oneworld
"Japan Air sticks with Qantas in oneworld
MATT O'SULLIVAN
February 10, 2010 - 11:26AM
Qantas and its airline partners in the oneworld alliance have won the battle to keep Asia’s biggest carrier, Japan Airlines, in their camp.
JAL’s decision to stay with oneworld is a dramatic turnaround from several weeks ago when it looked to be on the verge of defecting to the Delta Air Lines-led SkyTeam alliance.
The Japanese flagship carrier and American Airlines also announced plans for a strategic alliance on the lucrative Japan-US route. It will require regulatory approval in both Japan and the US.
The deal could also open the way for deeper working relationships with other airlines in the oneworld alliance, including Qantas and British Airways. Qantas has already promised to share its expertise in running a no-frills airline with JAL.
Qantas’s chief executive, Alan Joyce, said in a statement today that the airline was looking forward to working with the new leadership team at JAL. ‘‘We believe oneworld is clearly the right strategic alliance option for JAL, providing both commercial stability and growth opportunities at a vital time for the airline,’’ he said.
Shares in Qantas rose 4 cents to $2.84 in early morning trading.
After entering US-style bankruptcy protection last month, JAL unveiled a restructure plan which includes axing 14 international and 17 domestic routes by the end of March 2013, slashing about 15,700 jobs and phasing out 53 aircraft.
The American Airlines-led oneworld and SkyTeam have been engaged in bidding war to win over JAL for months. American Airlines and private-equity firm TPG offered to invest as much as $US1.4 billion ($1.6 billion) in the Japanese airline.
The decision to stay in oneworld is a relief to Qantas because the alliance helps feed passengers from Japan onto its network. Qantas also has a codeshare with JAL on the Japan-Australia route.
Qantas gains an estimated $500 million a year in revenue from the route. About 70 per cent of the traffic on the route comes from Japan.
It is also a boost to the long-term viability of the 11-member oneworld alliance, which is dwarfed by the 25-member Star Alliance, whose members include the Japanese airline All Nippon Airways.
But it is a slight negative for Virgin Blue which could have benefited from SkyTeam gaining a presence in Japan. The second-largest Australian airline has a close working relationship with Delta, which could have helped it to further any ambitions it has in the Japanese market.
Virgin Blue has previously mooted the possibility of its long-haul offshoot, V Australia, flying to Haneda Airport in Tokyo.
[email protected]
SMH"
"Japan Air sticks with Qantas in oneworld
MATT O'SULLIVAN
February 10, 2010 - 11:26AM
Qantas and its airline partners in the oneworld alliance have won the battle to keep Asia’s biggest carrier, Japan Airlines, in their camp.
JAL’s decision to stay with oneworld is a dramatic turnaround from several weeks ago when it looked to be on the verge of defecting to the Delta Air Lines-led SkyTeam alliance.
The Japanese flagship carrier and American Airlines also announced plans for a strategic alliance on the lucrative Japan-US route. It will require regulatory approval in both Japan and the US.
The deal could also open the way for deeper working relationships with other airlines in the oneworld alliance, including Qantas and British Airways. Qantas has already promised to share its expertise in running a no-frills airline with JAL.
Qantas’s chief executive, Alan Joyce, said in a statement today that the airline was looking forward to working with the new leadership team at JAL. ‘‘We believe oneworld is clearly the right strategic alliance option for JAL, providing both commercial stability and growth opportunities at a vital time for the airline,’’ he said.
Shares in Qantas rose 4 cents to $2.84 in early morning trading.
After entering US-style bankruptcy protection last month, JAL unveiled a restructure plan which includes axing 14 international and 17 domestic routes by the end of March 2013, slashing about 15,700 jobs and phasing out 53 aircraft.
The American Airlines-led oneworld and SkyTeam have been engaged in bidding war to win over JAL for months. American Airlines and private-equity firm TPG offered to invest as much as $US1.4 billion ($1.6 billion) in the Japanese airline.
The decision to stay in oneworld is a relief to Qantas because the alliance helps feed passengers from Japan onto its network. Qantas also has a codeshare with JAL on the Japan-Australia route.
Qantas gains an estimated $500 million a year in revenue from the route. About 70 per cent of the traffic on the route comes from Japan.
It is also a boost to the long-term viability of the 11-member oneworld alliance, which is dwarfed by the 25-member Star Alliance, whose members include the Japanese airline All Nippon Airways.
But it is a slight negative for Virgin Blue which could have benefited from SkyTeam gaining a presence in Japan. The second-largest Australian airline has a close working relationship with Delta, which could have helped it to further any ambitions it has in the Japanese market.
Virgin Blue has previously mooted the possibility of its long-haul offshoot, V Australia, flying to Haneda Airport in Tokyo.
[email protected]
SMH"