JAL Task Force Puts Alliance Review On Hold -Source
October 05 2009 - 8:39AM
Dow Jones News
Japan Airlines Corp. (JALSY) will not revise its alliance
strategy until a government task force has finished its review of
the loss-making carrier's financial structure, a person familiar
with the situation said Monday.
The airlines's executives had hoped to choose between proposals
floated by current partner American Airlines and Delta Air Lines
Inc. (DAL) this month.
However, the outgoing Japanese government last month appointed a
five-member task force to oversee the carrier's future after making
its third request for state aid to ride out operating losses and a
large debt and pension burden.
The U.S. carriers have maintained contact with the Japanese
counterparts, but any resolution of a process that could see JAL
switch its allegiance within global industry alliances has been put
on hold.
Japan's Kyodo news agency reported earlier Monday that the
separate talks between JAL, Delta and American, a unit of AMR Corp.
(AMR), had been put on hold.
"No-one is packing their bags," said one person familiar with
talks held by JAL, which already has an alliance with American.
Both are members of the global Oneworld alliance.
Delta, a member of the rival SkyTeam grouping, has also been
courting JAL. While Delta has a large Asian network, SkyTeam lacks
a Japanese partner.
-By Doug Cameron, Dow Jones Newswires; 312-750-4135;
doug.cameron@dowjones.com