Welcome to Flightinfo.com

  • Register now and join the discussion
  • Friendliest aviation Ccmmunity on the web
  • Modern site for PC's, Phones, Tablets - no 3rd party apps required
  • Ask questions, help others, promote aviation
  • Share the passion for aviation
  • Invite everyone to Flightinfo.com and let's have fun

Now AA is talking with JAL......show us the $$$$--article

Welcome to Flightinfo.com

  • Register now and join the discussion
  • Modern secure site, no 3rd party apps required
  • Invite your friends
  • Share the passion of aviation
  • Friendliest aviation community on the web
lose-lose

All codesharing and U.S. pilot jobs aside, I don't see how this whole affair with JAL isn't a lose-lose situation for AA. It is not clear to me at all that AA would be in finance talks with them to secure an already existent relationship in Oneworld, were not DAL and AF-KLM in their own talks with them to steal them away.

Certainly, whichever group "wins" this battle to throw money at them, Skyteam has everything to gain, and Oneworld has everything to lose. If Skyteam succeeds, then they break up one of the pillars of Oneworld, and the only significant presence in Asia for them. This would be a veritable coup for Skyteam, and Oneworld would be essentially locked out of Asia for years to come.

Yet AA and now BA seem desperately ready to outbid Skyteam in order to secure their alliance. So their overpaying should they "win" seems highly likely. And the major benefits for Oneworld are defensive. They will have successfully parried Skyteam's thrust, but that is essentially all that they gain from it. However, the cost would be to either sap the remainder of their liquidity, or encumber themselves further into debt. They lose either way. For these reasons, I would have to say that Skyteam has already won with JAL, regardless of the outcome.
 
All codesharing and U.S. pilot jobs aside, I don't see how this whole affair with JAL isn't a lose-lose situation for AA. It is not clear to me at all that AA would be in finance talks with them to secure an already existent relationship in Oneworld, were not DAL and AF-KLM in their own talks with them to steal them away.

Certainly, whichever group "wins" this battle to throw money at them, Skyteam has everything to gain, and Oneworld has everything to lose. If Skyteam succeeds, then they break up one of the pillars of Oneworld, and the only significant presence in Asia for them. This would be a veritable coup for Skyteam, and Oneworld would be essentially locked out of Asia for years to come.

Yet AA and now BA seem desperately ready to outbid Skyteam in order to secure their alliance. So their overpaying should they "win" seems highly likely. And the major benefits for Oneworld are defensive. They will have successfully parried Skyteam's thrust, but that is essentially all that they gain from it. However, the cost would be to either sap the remainder of their liquidity, or encumber themselves further into debt. They lose either way. For these reasons, I would have to say that Skyteam has already won with JAL, regardless of the outcome.

That is exactly why I think it could be a Red Herring.
 
This doesn't make sense to me.

Oh, wait, it's the airline business. It's NOT supposed to make sense...

TC
 
You guys are all missing the big point. It's all about STRATEGERY.... I believe Leo Mullin is advising this deal as an outside consultant.
 
The biggest loser will be UAL. Dal has NWA, AA will have JAL. Then who does UAL have? Only CAL, it's tough to sell routes with only one buyer and even tougher to negotiate a merger when the other guy knows he is the only game in town
 
UA and CO would be just fine as long as ANA sticks around with STAR alliance. With all of this mess going on with JAL, ANA will soon be the preferred airline of Japan. STAR also have SQ, TH and OZ, so bring it.
 
UA and CO would be just fine as long as ANA sticks around with STAR alliance. With all of this mess going on with JAL, ANA will soon be the preferred airline of Japan. STAR also have SQ, TH and OZ, so bring it.

Last year ANA already transported more passengers in both the domestic and international markets than JAL and the stats released for mid year already shows ANA with a good lead for this year, ANA is already the preferred airline in Japan. I frankly think it is more likely they will enter into a partnership with AF/KLM that they would with AA, just because they want to expand in higher yield markets, if you see the expansion plans of ANA for the 787/748/777 it is more towards China and the EU than anything else (very little expansion to the USA) specially in the cargo business (we carry a lot of freight to and from China on the passenger flights) China surpassed the USA last year as the major consumer of Japanese goods and the expansion is concentrated on that block. Although the USA cargo market continues to be an interesting and profitable market for the Japanese carriers the passenger market is not that much (the yield is just not there) I would be very surprised if those AA/JAL talks amount to anything
 

Latest resources

Back
Top