Will JAL leave OW?

[drron]

Some disturbing rumours-
UPDATE 2-Delta in talks on stake in Japan Airlines-media | Industries | Industrials, Materials & Utilities | Reuters

"
TOKYO, Sept 11 (Reuters) - Delta Air Lines (DAL.N), the world's biggest carrier, is in talks to invest in struggling Japan Airlines Corp (JAL) (9205.T) and become its top shareholder, Japanese media said on Friday.
Public broadcaster NHK and Kyodo news said Delta was in talks to invest several tens of billions of yen (several hundred million dollars) in JAL, Asia's largest airline by revenue, as part of a business alliance.
"I can't verify what has been reported by NHK and can't comment further at this time," said a JAL spokeswoman."

Now if DL invests in JAL and it switches to Skyteam Asia will be much more difficult for OW itineraries especially with QF sending routes to JQ.
Hopefully it is in the same league as other mergers mentioned this year.
Being discussed on FT-
Delta buying into JAL? What will this do for oneworld? - FlyerTalk Forums
And on Travelling better-
http://www.travelingbetter.com/forums/showthread.php?t=3830

 

[NM]

Change of major shareholder does not necessarily have to mean changing alliances.

At least it won't affect my two JL flights this month.

 

[samh004]

I'd imagine Delta wouldn't be keen to just pull out of OW as soon as they got the biggest stake, that probably wouldn't help JAL, but perhaps in the future they might decide to go that route.

OW's really struggling.

 

[browski]

OW's really struggling.

I don't think that OW is struggling but I'm not sure their last few new members were the best strategically.

OW have 3 huge geographical gaps in their global routings:
Africa, Middle East and the sub-continent.

The inclusion of Malev and Royal Jordanian have not really solved glaring issues in their network. With BA, Iberia and Finnair already servicing Europe, I'm not sure Malev was the next most pressing partner requirement. Royal Jordanian only services a niche market and cannot really be used as a hub for travel betwwen Australia/Asia and Europe. In addition, OW really missed the boat when South African Airlines joined *A. This strategic loss was compounded when Africa's second largest carrier, Egypt Air also joined *A.

So.........what's left. I think JAL will remain OW irrespective of the Delta interest. However, let's hope that OW has serious talks with Jet Airways, Etihad and Ethiopian airlines. If OW could get those 3 on board then I would say that it is "game on". Until then *A has the upper hand; I would not say that OW could not turn things around. All they need is a coup......

 

[dajop]

The inclusion of Malev and Royal Jordanian have not really solved glaring issues in their network. With BA, Iberia and Finnair already servicing Europe, I'm not sure Malev was the next most pressing partner

They needed someone though. BA, IB & AY do provide European coverage, but their hubs are all I guess around the edge of Europe, with LH/Star tying up central Europe (LH, Swiss, LOT, Austrian, Adria, Croatian) & "answers" to each of BA (BD), IB (JK/TP) & AY (SK) and Skyteam the next ring of countries (AZ, AF, KL & Czech) there wasn't much left but Malev.

Oneworld does have it's strengths though, being South America and Australia where the other two alliances don't have a huge presence.

 

[Keith009]

JAL has issued a denial of any tie-up:
Japan Airlines Denies Report of Delta Capital Tie-Up (Update2) - Bloomberg.com

It would be a huge blow to OW in Asia if they lose JAL, which operates from a rather high rev hub and does provide many more intra Asian routings that CX/KA don't do. I saw them as one of the "star recruits" (network wise) of 2007, as MA and RJ mainly operate as feeder carriers to the rest of the alliance.

With the upcoming entry of MX I think OW totally owns South America. And S7 in Russia which seems to operate a decent domestic network - they are no Aeroflot but the OW strategy is to avoid overlaps by picking a mix of feeders and heavyweights anyway.

And remember... this is the alliance that has almost consistently posted a net profit, compared to massive losses and deficits posted by its competitors.

Probably won't happen but I keep hoping for Malaysian to join OW.... lovely carrier with some v keen fares. Plugs a gap in South East Asia too, as well as some interesting routings (KUL-JNB-EZE).

Then again a few airline CEOs have made note of the fact that with industry consolidation being pursued with increased enthusiasm, airline alliances may well be a lot more fluid in their composition in the long term.

 

[Keith009]

Now this is starting to get interesting!

Report: JAL in tie-up talks with Air France-KLM - Yahoo! Finance

 

[drron]

Its good to see that AA is taking this seriously.Without JAL OW does seem a lot more fragile.
And QF009 unfortunately all the rumours are for Malaysian to join Skyteam not OW.From Wikipedia-
Malaysia Airlines - Malaysia Airlines reached an agreement with Air France-KLM to upgrade their codeshare agreements into an alliance in 2006. While there is no timetable for Malaysia Airlines to join SkyTeam, their restructuring plan puts 2009-2010 as the target years.[24] Malaysia Airlines also reached an agreement with Alitalia and China Southern Airlines, SkyTeam members, to start code-sharing in 2007.[25]

 

[jakeseven7]

So.........what's left. I think JAL will remain OW irrespective of the Delta interest. However, let's hope that OW has serious talks with Jet Airways, Etihad and Ethiopian airlines. If OW could get those 3 on board then I would say that it is "game on". Until then *A has the upper hand; I would not say that OW could not turn things around. All they need is a coup......

According to some rumours on FT OW and Ethiad have been talking.... this would be a coup and smack Emirates around!

 

[Keith009]

Its good to see that AA is taking this seriously.Without JAL OW does seem a lot more fragile.
And QF009 unfortunately all the rumours are for Malaysian to join Skyteam not OW.From Wikipedia-
Malaysia Airlines - Malaysia Airlines reached an agreement with Air France-KLM to upgrade their codeshare agreements into an alliance in 2006. While there is no timetable for Malaysia Airlines to join SkyTeam, their restructuring plan puts 2009-2010 as the target years.[24] Malaysia Airlines also reached an agreement with Alitalia and China Southern Airlines, SkyTeam members, to start code-sharing in 2007.[25]

And that is why I said it'd probably not happen!
I somehow doubt MH will be able to join ST either. AF don't want them there. VN got in before MH even though MH has been pursuing ST membership for much longer.
What got my hopes up was all the rumours of talks between QF and MH.

 

[Travel Guru]

According to some rumours on FT OW and Ethiad have been talking.... this would be a coup and smack Emirates around!

We can only hope so, EY operate a brilliant J product, and would certainly entice me to fly them if they were OW.

As an aside, just arrived in Paris on JL in J, fantastic, outstanding service, I couldn't fault the staff, will post a trip report when I return in a few wks.

TG

 

[pauly7]

We can only hope so, EY operate a brilliant J product, and would certainly entice me to fly them if they were OW.

As an aside, just arrived in Paris on JL in J, fantastic, outstanding service, I couldn't fault the staff, will post a trip report when I return in a few wks.

TG

+1. I was stoked when QF hooked up with them. I think you wrote the trip report right as well Travel Guru?

They seem more consistant than Emirates where I have lucked out in the past and ended up in a very very ordinary J seat.....

 

[drron]

Possibly new developements in this story-
British Airways May Join JAL Pursuit | Transportation | Financial Articles & Investing News | TheStreet.com

Suggestions BA and QF may get involved.

 

[codash1099]

We can only hope so, EY operate a brilliant J product, and would certainly entice me to fly them if they were OW.

As an aside, just arrived in Paris on JL in J, fantastic, outstanding service, I couldn't fault the staff, will post a trip report when I return in a few wks.

TG

I hope JO are just as good. Looks like I'll need them in my DONE4 in March (HNL-NRT-HKG). No way am I flying QF's 763 out of HNL.

 

[anat0l]

I hope JL don't leave oneworld but in saying that they are in deep trouble.

ow is a thin alliance and thin as it is already for intra-Asia; CX and JL barely holding the fort also thanks to a few fifth freedom routes.

It'd be nice if EY joins the alliance but being a middle Eastern carrier with different models I just don't see that happening. It was amazing, though, to see EK offer rewards options to the Velocity program. EK is still maintaining a no alliances stance, however.

Oddly enough, if EY join ow then this might precipitate huge losses or severe restructuring of the flights through hubs like SIN, BKK, HKG and NRT when travelling to LON, impacting QF, BA, CX and JL, unless this opens up possibilities for the said impacted carriers to say use AUH has a new hub (although AUH as it stands right now is a ***hole, according to a third party experience).

I think it will be a cold day in Hell when MH joins ow, and as has been said, I thought they were being buttered up for ST mainly thanks to KL and AF.

And QF has been pursuing many suitors in the past couple of years (BA, MH, etc.). Don't you think they should stop wasting money and time in chasing more airlines for merger?

 

[Keith009]

I think it will be a cold day in Hell when MH joins ow, and as has been said, I thought they were being buttered up for ST mainly thanks to KL and AF.

MH has been pursuing Skyteam membership since 2006 (note their long standing codeshare agreements with KL, and their recent deal with AZ) but had not been able to achieve that goal as AF doesn't want them there.

 

[dajop]

ow is a thin alliance and thin as it is already for intra-Asia; CX and JL barely holding the fort also thanks to a few fifth freedom routes.

This might sound a bit off the wall (either that or wishful thinking), but QF could consider doing a "DJ" with 3K (ie evolve it from a LCC to a "new world" carrier with offerings like lounge access, luggage interlining, Y+ to enhance corporate appeal) and somehow find a way for it to enter ow. Particularly could feed to/from QF at SIN, as 3K (in contrast to Tiger), does have a tilt towards the business destinations (KUL, BKK, SGN, MNL, CGK, HKG, Yangon) rather than focussing on primarily leisure destinations.

 

[Hvr]

JAL increases planned worker cuts to 6,800

Kyodo News
Japan Airlines Corp. will increase its personnel cuts by more than 1,000 jobs to a total of around 6,800 by March 2012, JAL President Haruka Nishimatsu said Wednesday.
JAL, which plans to scale down its operations through such steps as streamlining its international and domestic routes, conveyed its improvement plan Tuesday to a panel of the Land, Infrastructure, Transport and Tourism Ministry tasked with monitoring its business turnaround.

This doesn't look good.


Hope they stay in OneWorld, I enjoy their cheap internal fares (10k Yen per sector).

 

[pauly7]

It'd be nice if EY joins the alliance but being a middle Eastern carrier with different models I just don't see that happening. It was amazing, though, to see EK offer rewards options to the Velocity program. EK is still maintaining a no alliances stance, however.

Yea, good luck trying to redeem them though (speaking from a very frustrating recent experience)

Oddly enough, if EY join ow then this might precipitate huge losses or severe restructuring of the flights through hubs like SIN, BKK, HKG and NRT when travelling to LON, impacting QF, BA, CX and JL, unless this opens up possibilities for the said impacted carriers to say use AUH has a new hub (although AUH as it stands right now is a ***hole, according to a third party experience).

QF have publically stated that the codesharing with EY is the first step in potential QF flights to the region and on..... very interesting....

And QF has been pursuing many suitors in the past couple of years (BA, MH, etc.). Don't you think they should stop wasting money and time in chasing more airlines for merger?

Mmmmm i don't know. The trend is towards consolidation and I think our small minded government needs to realise that QF competes on a global stage... the QF/Air NZ debacle was something that could have helped both carriers achieve this.... All these super mergers may leave QF very vunerable.

 

[drron]

Not quite related but reports now that JAL are considering pulling out of BNE-
JL eyes pulling out of 9 foreign cities: report - FlyerTalk Forums
And in the OW/Skyteam saga AF are now involved-
FT.com / Companies / Airlines - JAL cuts routes in bid to draw funds