Loading
18-Dec-2009 11:41 AM

Japan to review US-Japan market share figures; disappointed in American's presentation

Japan Government made the following statements regarding Japan Airlines’ proposed international partners, Delta Air Lines and American Airlines (Bloomberg/Kyodo, 17-Dec-2009):

  • Japan-US market share contradictions: Japan Transport Minister, Seiji Maehara, stated Japan would review the potential market shares of a proposed Delta-JAL alliance after American Airlines cited "conflicting" numbers. American argued that Delta-JAL would not be granted antitrust immunity, since they would hold a share of over 60% in the Japan-US market. Delta maintains the partnership would not face any regulatory hurdles and “can absolutely be approved”;
  • American Airlines proposal: Mr Maehara added that he expected a more positive explanation from American on the merits of its potential tie-up with JAL.  
  • Delta's proposed tie-up with third party for JAL investment: Delta CEO, Richard Anderson, confirmed the carrier is ready to team up with a third party, such as an investment fund, to increase its proposed investment in JAL. The carrier’s spokesman, Trebor Banstetter, added, “a partnership with SkyTeam provides the best long-term option for Japan Airlines to thrive, with revenue opportunities that greatly exceed those of its current alliance”.

Japan Government: “There were differences between the American Air explanation and the figures I understood. I have asked for them to be checked...American promoted itself to a certain extent, but it spent most of the time explaining why JAL cannot partner with Delta. To be honest, I wish they had given us a slightly more forward-looking explanation...Since JAL is seeking aid from a scheme built on the use of taxpayers’ money, which partner it chooses will be major point that will make a huge difference to how the money is utilized,” Seiji Maehara, Transport Minister. Source: Bloomberg/Kyodo News, 17-Dec-2009.

Delta Air Lines: ‘‘We are prepared to work with constituencies if there is a need or desire to use our agreement and our investment to increase participation by others,’’ Richard Anderson, CEO. Source: Kyodo News, 17-Dec-2009.

Want More News Like This?

CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More