Approval of American-Japan Airlines Antitrust Immunity Application Is Key To Restructuring Success
TOKYO – American Airlines today reaffirmed its support of its long-standing oneworld® Alliance partner Japan Airlines (JAL), which today entered into a financial restructuring as the first step toward returning to financial stability under new leadership. The restructuring will not affect JAL’s relationship with its oneworld partners nor will it cause any disruption in customer service.
“We look forward to continuing to work with JAL as it undertakes its restructuring plan. We are confident that remaining with the oneworld Alliance provides the least risk for JAL, the greatest chance to win U.S. Department of Transportation (DOT) approval of an antitrust immunity application, and offers the most long-term financial benefits,” said Craig Kreeger, American’s Senior Vice President - International. “There has been significant discussion about JAL making the right alliance decision because it is in Japan’s national interest and will benefit the Japanese consumer, and we agree.
“Our offer of support can be an important part of a government-led restructuring plan. It consists of USD $2 billion in enhanced total value, including a guarantee of $300 million of revenues to JAL over the next three years,” said Kreeger. “Additionally, American has been working with valued partner JAL to develop a proposed trans-Pacific joint venture and we are eager to submit an antitrust immunity application to DOT and expect it to be expeditiously approved because it is pro-consumer. JAL remaining in oneworld maintains the competitive balance that exists between alliances serving the U.S.-Japan market.
“Such a balance would not be possible if JAL aligns with the SkyTeam alliance,” said Kreeger. “In that case, overall trans-Pacific competition would be reduced, which won’t be good for the consumer or the Japanese economy and won’t be acceptable to U.S. government regulators. The effect of a reduction also would jeopardize the Japanese government’s objective to ensure Japan remains the premier gateway to northeast Asia and would undermine the purpose of the Open Skies accord reached last month by the two governments.
“For all of these reasons, we look forward to working with the new management of JAL and supporting their restructuring process,” Kreeger said.
About American Airlines
American Airlines, American Eagle and AmericanConnection® serve 250 cities in 40 countries with, on average, more than 3,400 daily flights. The combined network fleet numbers more than 900 aircraft. American's award-winning Web site, AA.com®, provides users with easy access to check and book fares, plus personalized news, information and travel offers. American Airlines is a founding member of the oneworld® Alliance, which brings together some of the best and biggest names in the airline business, enabling them to offer their customers more services and benefits than any airline can provide on its own. Together, its members serve nearly 700 destinations in more than 130 countries and territories. American Airlines, Inc. and American Eagle Airlines, Inc. are subsidiaries of AMR Corporation. AmericanAirlines, American Eagle, AmericanConnection, AA.com, We know why you fly and AAdvantage are registered trademarks of American Airlines, Inc. (NYSE: AMR)
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