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JAL Sticks With American Airlines

By Bill Zeeble, KERA News

http://stream.publicbroadcasting.net/production/mp3/kera/local-kera-884656.mp3

Dallas, TX –

Bankrupt Japan Airlines - JAL - will keep its cooperative relationship with Fort Worth's American Airlines after months of tense negotiations. KERA's Bill Zeeble has more

JAL's membership in American's OneWorld alliance of international airlines was at risk. The Asian carrier has been in dire financial trouble. It's now re-organizing. Delta, the world's largest carrier, made a billion dollar bid for it, along with it's SKYTEAM alliance, a Oneworld competitor.

American upped the bid. But JAL rejected both in favor of sticking with Oneworld. Tim Smith, with American, explains why.

Tim Smith: The likelihood of being able to ever achieve anti-trust immunity with such a thunderingly large market share had they gone in the other direction would've likely not been doable within the U.S. Department of Transportation and its governance.

The Department of Transportation must still approve this deal. Smith says the agreement means American's passengers will have the same access to international flights they've had. He says struggling JAL could earn up to 2 billion dollars over the next several years as a result.

Email Bill Zeeble