Tokyo: Two of world's largest airlines upped the ante in a scramble over struggling Japan Airlines Corp, with American Airlines Inc warning of "enormous risks" if JAL switches to the rival SkyTeam alliance.
A day after Delta Air Lines Inc unveiled a lucrative financial package for JAL, American Airlines, a unit of AMR Corp yesterday struck back as it is readying an even sweeter
proposal totalling around 130 billion yen, sources said.
An American Airlines executive urged cash-strapped JAL to remain in current oneworld grouping, saying the alliance is providing USD 500 million in annual revenue to JAL and will add USD 100 million more if the two companies can obtain anti-trust immunity.
"There is very minimal risk in staying with oneworld as opposed to joining the SkyTeam, which delivers enormous risks," Theo Panagiotoulias, American Airlines vice president
for Asia and the Pacific said.
"This is not a war between two carriers over JAL," he said adding "This is the right choice for JAL's future."
He declined to disclose numerical details of a financial package until JAL finalizes a deal with a government-backed corporate turnaround body for broad support measures.
He said American Airlines is ready to make "a significant investment" in JAL together with TPG once it receives a request from both JAL and the Japanese government.
The remarks came after Delta said Wednesday the company and its global alliance partners are ready to offer a financial package totalling USD 1.02 billion for JAL.
Bureau Report
First Published: Friday, November 20, 2009, 16:14