Japan Airlines Corp. said Tuesday that it will keep its partnership with American Airlines in the Oneworld Alliance and it rejected an offer from rival Delta Air Lines Inc.
The Tokyo carrier, which filed for bankruptcy protection from creditors in a Japanese court in January, had been at the center of a tug-of-war between AMR Corp’s. American and Delta, both of which sought a bigger foothold in fast-growing markets in Asia.
Both U.S. carriers have been offering financial support to JAL for greater coordination on routes and ticket prices, as well as revenue sharing. JAL is Asia’s second-largest carrier in terms of annual customers and destinations.
“We respect that this was an important decision for Japan Airlines and the government of Japan, and we believe they have made the right choice for JAL’s many stakeholders, for Japan’s national interests and for consumers traveling between Japan and the U.S.,” said Gerard Arpey, AMR’s chairman and chief executive, in a statement.
In the coming days, he said, American will work with JAL’s new management to finalize a joint application for trans-Pacific antitrust immunity. The application will be filed with the U.S. Department of Transportation.
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JAL and American previously outlined plans to deliver to JAL commercial benefits valued at $2 billion in ongoing and incremental revenue over three years, the American statement said.
JAL was said to have favored Delta before it filed for court-led rehabilitation. But a switch to Delta and its SkyTeam global alliance might have required adjusting certain operations and might have affected JAL’s restructuring plans, according to local media reports.
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