Japan Airlines may join oneworld
Aug 27, 1999 | 3:59 am
#1
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Japan Airlines may join oneworld
Bloombeg, aug-27-99
[TOKYO] Japan Airlines Co, Asia's largest airline, is "considering" joining oneworld, the airline alliance led by AMR Corp's American Airlines and British Airways plc, president Isao Kaneko said.
"In the past year, we have been setting up bilateral agreements with foreign carriers like American, Swissair, BA and Cathay," said Mr Kaneko, 61. "We have expanded our coverage, and we are ready to think about global alliances."
Mr Kaneko's comment is the clearest signal yet JAL will join the grouping, analysts said. oneworld, the world's second-largest airline grouping after Star Alliance, has been courting Tokyo-based JAL as airlines worldwide race to form partnerships and increasingly rely on them as a way to serve more destinations without investing in other carriers.
JAL's main rival All Nippon Airways Co, Asia's second largest airline, will in October join Star Alliance, led by UAL Corp's United Airlines and Deutsche Lufthansa AG. That move, analysts said, adds to the pressure on JAL to join an alliance.
"It's a natural progression" for JAL to join oneworld, said Douglas Hayashi, a senior analyst at HSBC Securities Co, who rates JAL stock "sell."
JAL has separate marketing partnerships with five members of oneworld, BA, American, Qantas Airways Ltd of Australia, Hongkong-based Cathay Pacific Airways and Canadian Airlines Corp. and has repeatedly said that its "main task is to ensure the success of bilateral alliances we have," according to Mr Kaneko.
"In the past year, we have been setting up bilateral agreements with foreign carriers like American, Swissair, BA and Cathay," said Mr Kaneko, 61. "We have expanded our coverage, and we are ready to think about global alliances."
Mr Kaneko's comment is the clearest signal yet JAL will join the grouping, analysts said. oneworld, the world's second-largest airline grouping after Star Alliance, has been courting Tokyo-based JAL as airlines worldwide race to form partnerships and increasingly rely on them as a way to serve more destinations without investing in other carriers.
JAL's main rival All Nippon Airways Co, Asia's second largest airline, will in October join Star Alliance, led by UAL Corp's United Airlines and Deutsche Lufthansa AG. That move, analysts said, adds to the pressure on JAL to join an alliance.
"It's a natural progression" for JAL to join oneworld, said Douglas Hayashi, a senior analyst at HSBC Securities Co, who rates JAL stock "sell."
JAL has separate marketing partnerships with five members of oneworld, BA, American, Qantas Airways Ltd of Australia, Hongkong-based Cathay Pacific Airways and Canadian Airlines Corp. and has repeatedly said that its "main task is to ensure the success of bilateral alliances we have," according to Mr Kaneko.
Aug 28, 1999 | 4:00 am
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How about more rumours from 'internal' Thai staff that management is not 'happy' that STAR is breathing down their necks. So much so that they're considering other alliances!
Aug 28, 1999 | 5:17 pm
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Are those three cases all that surprising?
SQ have been hopping in and out of bed with three of the four alliances and have recently hinted at DL/AF. I'll believe it when I fly it.
AA have outmanoevered everyone brilliantly over AC/CP if it comes off - great business, but not necessarily indicative of a big weakness in Star.
TG are very much one of the 'junior' partners in Star, in terms of revenue, traffic and profit. It is inevitable that airlines in that situation may feel uncomfortable when the demands of 'the alliance' are imposed on them. Don't be surprised when the same happens in Oneworld as BA and AA try to dominate what they see as very much their party.
[This message has been edited by james (edited 08-28-1999).]
SQ have been hopping in and out of bed with three of the four alliances and have recently hinted at DL/AF. I'll believe it when I fly it.
AA have outmanoevered everyone brilliantly over AC/CP if it comes off - great business, but not necessarily indicative of a big weakness in Star.
TG are very much one of the 'junior' partners in Star, in terms of revenue, traffic and profit. It is inevitable that airlines in that situation may feel uncomfortable when the demands of 'the alliance' are imposed on them. Don't be surprised when the same happens in Oneworld as BA and AA try to dominate what they see as very much their party.
[This message has been edited by james (edited 08-28-1999).]