Delta, SkyTeam offer $1 billion to Japan Airlines

[brokenwrench]

they are making a billion dollar offer

 

[brokenwrench]

DAL 09-04
November 19, 2009

Delta Pilots Support SkyTeam Alliance’s Proposed
Investment in Japan Airlines

Atlanta—The Delta Master Executive Council, the Delta branch of the Air Line Pilots Association, International
(ALPA), the union that represents the over 12,000 pilots of Delta Air Lines, today issued a statement supporting the
SkyTeam Alliance’s proposed investment in Japan Airlines (JAL).

The investment would consist of a capital investment of $500 million, $300 million in revenue guarantees, and $200
million in asset-backed financing.

“SkyTeam is without question the strongest long-term strategic partner for Japan Airlines†said Captain Lee Moak,
Delta MEC chairman. “SkyTeam currently serves 856 destinations in 169 countries around the globe. Delta serves
Tokyo to and from 12 U.S. destinations and would provide JAL with more than a 300 percent increase in connecting
passenger traffic over what it has with its current alliance partners. SkyTeam has proven to be very beneficial to
the financial and operational stability of its members, and JAL’s inclusion would further enhance and strengthen
the alliance as well as each and every one of its member airlines.â€

Under the terms of the proposal, Japan Airlines would become a full member of the SkyTeam Alliance. The
partnership would not only substantially increase the trans-Pacific opportunities for both Japan Airlines and Delta
Air Lines, but it would also allow JAL to reach far into Europe through SkyTeam’s extensive European network,
access it does not enjoy with its current alliance partners.

“The pilots of SkyTeam’s member airlines already share a very productive professional working relationship through
the SkyTeam Pilots Association,†Captain Moak continued. “At a recent SkyTeam Pilots Association meeting in
France, the Association passed a resolution supporting discussions that could result in JAL becoming a full member
of the Skyteam Alliance. The Skyteam Pilots Association looks forward to developing a collaborative and mutually
respectful working relationship with the JAL pilots.â€

“As a pilot union and also as members of the SkyTeam Pilots Association, one of our major goals is to enhance the
job security and long-term career prospects of our pilots,†said Captain Moak. “JAL’s inclusion in SkyTeam will
serve as another important step toward that end not only for the Delta pilots but also for the JAL pilots and all
pilots of SkyTeam member airlines.â€

“Japan Airlines has a long and proud history. As a SkyTeam member, JAL will be positioned for long-term growth
and continued success with over three times the connecting international traffic it now has and with access to a vast
and unique global network. SkyTeam’s investment offer is a vote of confidence in the strength of the proposed
partnership; unlike alternatives, it does not at all depend on predatory third-party venture capitalists. The Delta
pilots support the proposed investment in JAL and share in the SkyTeam Alliance’s belief that JAL and SkyTeam
are best served by JAL’s partnership in the alliance,†Captain Moak concluded.

Founded in 1931, ALPA represents 54,000 pilots at 36 airlines in the U.S. and Canada. ALPA represents over 12,000 Delta pilots.
Visit the ALPA website at www.alpa.org and the Delta MEC website at deltapilots.org.
SOURCE: Air Line Pilots Association
CONTACT: Delta MEC, Kelly Regus, 404-763-4925 office or kelly.regus@alpa.org

 

[DalMD88]

If we can pull JAL away from Oneworld it will be a major plus. JAL would bring a good respected Asian airline into SkyTeam.

 

[LukeAisleWalker]

This is just marvelous.
Now, I wonder if there will be any $$ left over to get DL f/a's "up to industry standard pay" in 2010 (as we've been assured over and over).
Also, won't this result in less DL metal to Asia and codesharing on JAL's metal?
This is good for the pilots???
Can anyone shed some light......?

 

[BABABOOY]

Possibly that there will be an increase in long haul flying?
Maybe Delta metal doing eastern long haul flying out of Japan
and JAL doing western flying? Maybe the same set up that we
have with AF/KLM where as Delta is able to fly non stops to certain
cities because of the JV. just a thought. Seems to be that ALPA has
the "big picture" in sight. Just like the JV with AF/KLM. We have
actually increased our flying because of the JV. Same could be said
with this proposed relationship with JAL. Probably much more efficient.

 

[Talcold09]

she is doing well. BA added.


maybe i will look into asia when i have time. I just cant wait for the Europe release of "Delta"

 

[chucky]

Rehab Body Wants JAL To Tie With Delta






not looking good for HalfWorld..err Oneworld. 😱

 

[700UW]

ANA a Star carrier is poised to take over JAL's international routes

 

[BABABOOY]

ANA a Star carrier is poised to take over JAL's international routes

I think this is just wishfull thinking... and as far as AA...
A proposed DL/JL would criple AA. or one can hope.
Payback for what AA did regarding the Pan Am routes in '91

 

[LukeAisleWalker]

I think this is just wishfull thinking... and as far as AA...
A proposed DL/JL would criple AA. or one can hope.
Payback for what AA did regarding the Pan Am routes in '91

Revenge and "payback" are very negative emotions. Learn to let go..........
right, Dignity? 🙂

 

[BABABOOY]

It doesn't look good for AA...

http://www.yomiuri.co.jp/dy/business/T100115007124.htm

"Japan Airlines and Delta Air Lines on Friday reached a basic agreement on a comprehensive tie-up that mainly features code-sharing flight services, company sources said."

 

[Dignity]

The way I look at it, there are two businesses operating in the same geographical area.

If there is one company that has a significant established presence and then another company that has an established presence and that one may be in financial need.

It makes sense for two companies with the significant presence, to link up in order to help the other one recover and then eventually help both become stronger.

If there is one company with an insignificant limited presence and another company with significant presence and that one may be in financial need.

The one with the insignificant presence cannot offer enough presence, to help the other one get back on their feet.

 

[goodgirl37]

The way I look at it, there are two businesses operating in the same geographical area.

If there is one company that has a significant established presence and then another company that has an established presence and that one may be in financial need.

It makes sense for two companies with the significant presence, to link up in order to help the other one recover and then eventually help both become stronger.

If there is one company with an insignificant limited presence and another company with significant presence and that one may be in financial need.

The one with the insignificant presence cannot offer enough presence, to help the other one get back on their feet.

Absolutely, It would be a better move for JAL to link up with SkyTeam and DAL, as it would generate more revenue for them..

 

[chucky]

"SkyTeam was a much later arrival on the scene and it too is still much smaller than Star. That is why the JAL scalp will be so valuable to it. The combination of Korean, China Southern and JAL makes for a powerful triangle of partners."

JAL Bankruptcy a tsunami whose waves circle the world; maybe deadly for OneWorld










Interesting article on the ramifications of a JAL defection to SKYTEAM.