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JAL to choose soon between American, SkyTeam alliance

Date Posted: 2010-01-21

A decision is only days away as Japan Air Lines either picks a new partner or sticks with the one itís been with for a couple years.

Delta Air Lines has offered JAL •30 billion to switch allegiances and join its SkyTeam Alliance. Industry analysts say itís likely the ailing airline will switch to Delta and its Air France-KLM Group as it struggles to regain financial stability following bankruptcy.

The alternative is to stick with the current partner, American Airlines and OneWorld alliance. American has proposed infusing JAL with •5.4 billion. Enterprise Turnaround Initiative Corporation, which is overseeing the JAL resurrection, is thought to favor the Delta proposal, with would benefit the JAL coffers to the tune of •17+ billion annually.

A switch from OneWorld to Sky Team Alliance will mean a lot of changes for Japan Air Line, including switching its mileage program partners to SkyTeam carriers, including Korean Air, from OneWorld airlines British Airways and Cathay Pacific Airways.

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