DOT grants tentative approval for AA/JAL ATI joint venture

[FWAAA]

Things are looking up for AA. A year ago, DL was trying to steal JAL away from AA and Oneworld and now, JAL and AA have tentative approval for an immunized alliance.

U.S. Department of Transportation Tentatively Grants Antitrust Immunity to American Airlines and Japan Airlines

The Two Airlines Will Enter Into Joint Venture After Final DOT Order is Issued and Japan Ministry of Land, Infrastructure, Transport and Tourism Grants Approval

FORT WORTH, Texas and TOKYO, Oct. 6 /PRNewswire-FirstCall/ -- American Airlines and Japan Airlines, both members of the oneworld® Alliance, today welcomed an order issued by the United States Department of Transportation (DOT) tentatively approving the antitrust immunity application filed by the two airlines in February.

By this action, the DOT has moved another step closer to granting antitrust immunity to the two airlines as allowed under a provision of the Open Skies agreement initialed by the United States and Japan last December. Open Skies allows new service between the U.S. and Tokyo International Airport at Haneda (HND). American will begin daily flights between New York's John F. Kennedy International Airport (JFK) and Haneda on Jan. 20, 2011, while Japan Airlines will commence daily flights between Haneda and San Francisco (SFO) as well as Honolulu (HNL) starting Oct. 31, 2010.

http://aa.mediaroom.com/index.php?s=43&item=3036

LAX may be in for additional flights, says Tom Horton:

LOS ANGELES (TheStreet) -- American, implementing its hub-focused strategy, is moving to increase its presence at Los Angeles International Airport.

Los Angeles is the third most important travel market in the world," said American President Tom Horton, in an interview with TheStreet. "So we're looking hard at LAX -- there may be more to come."

http://www.thestreet.com/_yahoo/story/10881606/1/american-cfo-more-to-come-at-lax.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

 

[Hopeful]

Things are looking up for AA. A year ago, DL was trying to steal JAL away from AA and Oneworld and now, JAL and AA have tentative approval for an immunized alliance.

Sometimes positive things happen when you are no longer king of the hill. AA has long been in need of an Asian presence and now that they lag DL and UA, there is no reason for the usual rejections AA has received in the past.

 

[jimntx]

I wonder if there is any chance we could get a non-stop to Hong Kong out of this from either JFK, LAX, or SFO?

 

[eolesen]

HKG is more likely from ORD or DFW, crew rest side letter permitting. CX already covers all three of those gateways.

 

[FWAAA]

I wonder if there is any chance we could get a non-stop to Hong Kong out of this from either JFK, LAX, or SFO?

I doubt it. Only AA and JAL are included in this antitrust immunity and it hinges on an open skies treaty with Japan. Cathay Pacific is still a viable member of Oneworld and flies to HKG from each of those gateways. Some of the prognosticators have said that AA may someday fly to HKG from ORD or DFW but my response to that is: If there was money to be made flying passengers nonstop between ORD or DFW and HKG, CX would already be doing it. I don't see AA flying its own metal to HKG as any more likely than AA flying its own metal to Australia. When you have the most desirable partners in the industry already flying long nonstops like those, probably best to rely on them and develop other routes.

My guess is that ATI with JAL results in more AA flights to Japan once the 787s begin to arrive.

 

[frontline]

I wonder if there is any chance we could get a non-stop to Hong Kong out of this from either JFK, LAX, or SFO?

Also I think SQ flies SFO-HKG. Would not want to go head to head with them, especially if it's a new configured business class.

ORD-HKG would be really good for us in my opinion.