Oneworld carriers working on competing Japan Airlines proposal

The action is heating up in Asia as several Oneworld carriers are working on a joint proposal to acquire a financial stake in cash-poor Japan Airlines. Word of the Oneworld competition with Delta Air Lines and other SkyTeam carriers for an expanded business relationship with JAL was reported late last week.

The Oneworld carrier are interested in the same access to JAL’s extensive route system in Asia and throughout the Pacific as is Delta, plus they seek to place a block on Delta and the SkyTeam alliance expanding and strengthening in the region. Japan Airlines is a current member of Oneworld. American Airlines, British Airways and Qantas are working together to develop a proposal to JAL’s liking that will it a member of their organization. American would possibly be the only Oneworld carrier making a capital investment in JAL.

The Asian carrier recently announced that 6,800 positions will be eliminated in a down-sizing of the airline, and that a financial and route restructuring would also be undertaken. Japan Airlines is expected for the second year in a row to report massive losses that have been blamed on both the worldwide recession and inept management.