TOKYO (Reuters) - American Airlines is in talks to take a minority stake in Japan Airlines (JAL) <9205.t> and to form a joint venture to expand their business partnership, a source with direct knowledge of the matter said. The talks come as Japan Airlines weighs a rival offer by Delta Airlines . Delta is also considering taking a stake in JAL as part of a deal that would include joint cooperation on international flights.
TOKYO (Reuters) - American Airlines is in talks to take a minority stake in Japan Airlines (JAL) <9205.T> and to form a joint venture to expand their business partnership, a source with direct knowledge of the matter said.
The talks come as Japan Airlines weighs a rival offer by Delta Airlines . Delta is also considering taking a stake in JAL as part of a deal that would include joint cooperation on international flights.
American and JAL have been holding senior-level talks for several weeks on a joint venture that may include a revenue-sharing agreement and joint contracts for business clients, the source said.
That venture hinges on the enactment of an "open skies" agreement between Japan and the United States that would allow for closer cooperation between airlines on flight operation. Talks between the United States and Japan are still ongoing.
"I'm not talking about hugs and kisses. I'm talking about economic value to Japan Airlines," the source said, speaking on condition of anonymity because the negotiations are not public and nothing has been decided.
"What we've been talking about is actually expanding the relationship not just maintaining it."
A deal with Delta could result in JAL's defection to the SkyTeam network, causing headaches for American, which currently has a code-sharing agreement and cooperates with JAL as part of the Oneworld alliance.
American Airilnes, a unit of AMR Corp , was ready to offer financial assistance and a business alliance that would be "overall competitive," with what Delta is able to offer JAL, Asia's largest airline by revenue, the source said.
JAL is in need of a cash infusion, having fallen deep into the red from the global economic downturn and due to its heavy cost base.
JAL secured a 100 billion yen credit line backed by the government in June and is restructuring under supervision by the state.
(c) Reuters 2009. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
Last updated: 13 September 2009, 07:08
Sunday 13 September 2009
American Airlines in talks to invest in JAL - source
0 comments:
Post a Comment