Last-ditch bid to keep JAL onboard
SYDNEY – Qantas and its oneworld alliance partners are making a desperate attempt to stop Japan Airlines defecting to the rival SkyTeam alliance.
There is a strong chance that JAL will switch camps from oneworld to the Delta Air Lines-led SkyTeam.
Delta Air Lines, the world’s biggest airline operator, and its rival American Airlines are vying for a stake in financially crippled JAL in a bid to expand their Asian networks.
Oneworld partners were due to hold a media conference today in Tokyo to reinforce the alliance’s proposed financial support for JAL.
But, according to a report in The Age in Melbourne, industry insiders say the odds are stacked heavily in favour of JAL.
There is growing expectations that Japan’s national flag carrier will file for bankruptcy protection this week.
JPMorgan analyst Matt Crowe said losing JAL from oneworld would be a blow for Qantas as many travellers chose which airline to fly based on their alliance affiliation.
”Frequent flyer points are a huge driver in all of this. Alliances work well when you have strong partners and if they make it a whole end-to-end service,” he said.
The likely defection of JAL also raises questions about the long-term viability of the 11-member oneworld alliance, the smallest of the three biggest global groupings. It is dwarfed by the 25-member Star Alliance, whose members include Japan’s All Nippon Airways.
Source: The Age
Ian Jarrett
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