19th Jan 2010

Japan Airlines to leave oneworld, defect to SkyTeam

The Wall Street Journal, via Dow Jones Newswires, is reporting that Japanese Airlines and Delta Air Lines have struck a deal. "Dutch daily De Telegraaf Monday reported that Delta and Air France-KLM have reached an agreement on a capital injection for JAL, with the Franco-Dutch carrier contributing hundreds of millions of euros," the Journal reports. "JAL has been receiving official advice that a tie-up with Delta would be more advantageous, according to people familiar with the matter, on the grounds that Delta has a more robust trans-Pacific flight network and a stronger Asian network than American Airlines."

SkyTeam is ready to welcome JAL into its alliance which will create "the largest and most successful airline alliance affiliation for JAL," a spokeswoman for SkyTeam told Dow Jones Newswires, adding that talks are still continuing. "Most of JAL's most important partners today are SkyTeam member airlines," she said. The spokeswoman also pointed out that JAL's regional Asian network will be complementary to the networks of SkyTeam members Korean Air Co. and China Southern Airlines Co. According to the Journal, a decision by JAL isn't likely to come until next month. The airline is expected to enter bankruptcy protection Tuesday.

In news breaking Saturday morning, Japanese newspaper The Yomiuri Shimbun writes "Japan Airlines and Delta Air Lines on Friday reached a basic agreement on a comprehensive tie-up that mainly features code-sharing flight services, company sources said." The newspaper reports the airlines are likely to officially sign the deal after the pact "is finally endorsed by new JAL top management that will be inaugurated after the JAL group applies for the application of the Corporate Rehabilitation Law."

With the deal, JAL will switch from its current one world frequent-flier alliance to the SkyTeam group headed by Delta. American Airlines and its oneworld partners had been engaged in an intense effort to keep JAL -- one of the alliance's key partners -- from switching to Delta and rival SkyTeam. Stay tuned for more details.  -- Ben Mutzabaugh