Delta meets Japan Government to make case for capital tie-up with JAL
Delta Air Lines executives met with Japanese Transport Minister, Seiji Maehara, on 09-Dec-2009, to promote the benefits of a capital tie-up with Japan Airlines (Kyodo, 09-Dec-2009). Delta has offered JAL a USD1.02 billion financial package with its SkyTeam alliance partners, including a USD500 million investment, in an attempt to attract the carrier to switch from the oneworld alliance. Mr Maehara is expected to meet with American Airlines executives next week (Kyodo, 09-Dec-2009). American Airlines has stated it is prepared to invest up to USD1.1 billion in JAL, together with its oneworld members and private-equity firm TPG Inc to prevent JAL's defection to the Skyteam alliance.
Mr Maehara stated he remained confident JAL will be able to reconstruct itself, but added the government has a "strong interest" in developments on capital tie-up talks with foreign carriers (Kyodo, 09-Dec-2009).
Japan Government: "Since it is a private company, it is up to JAL to decide which global airline company to partner with. But as JAL will use an entity using taxpayers' money (to turn itself around), we will watch closely what JAL will choose to do," Seiji Maehara, Japanese Transport Minister. Source: Kyodo, 09-Dec-2009.
Delta Air Lines: "In order for any restructuring to be successful, a company has to have top line growth, market expansion and more passengers. We give the opportunity to make certain that JAL holds its rightful place as the leading airline in Asia…We are committed to our relationship for many, many decades. Our partnerships are through thick and thin… Our focus is Tokyo and will remain Tokyo forever because it's really the center of where everything goes on in Asia from an aviation standpoint," Richard Anderson, CEO. Source: Kyodo, 09-Dec-2009.