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JAL to Stay with AA/Oneworld
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Some say that this decision only makes sense in the short run to reduce the risk of switching alliances. In the long run, JAL would be better-off with Delta. Nothing substantial will change for JAL, which is bankrupt.
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Well - this will sure be interesting to watch An ailing airline staying with an ailing alliance. Sticking with OneWorld sure was a conservative and cautious decision on behalf of JAL - but in my opinion the time for being conservative and cautious is long gone for JAL. Switiching to SkyTeam would have brought them into the fold with a powerful array of Asian airlines (Koreanair, China Southern, Vietnam Airlines) on their own continent and a strong partner across the Pacific.
As for SkyTeam - I think they were willing to take over JAL and help turn them around. But they won't be too sad now. JAL may still go completely belly-up and there's no real threat to SkyTeam from JAL staying in OneWorld. I don't see OneWorld threatening SkyTeam's number 2 spot in Asia any time soon.
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Originally posted by Peter Kesternich View PostWell - this will sure be interesting to watch An ailing airline staying with an ailing alliance. Sticking with OneWorld sure was a conservative and cautious decision on behalf of JAL - but in my opinion the time for being conservative and cautious is long gone for JAL.
Originally posted by Peter Kesternich View PostSwitiching to SkyTeam would have brought them into the fold with a powerful array of Asian airlines (Koreanair, China Southern, Vietnam Airlines) on their own continent and a strong partner across the Pacific.
As for a 'strong partner across the pacific,' I apologize for this comment, but is AA chopped liver? The airline is one of the strongest in the Western hemispehere, with connections throught the Americas that makes it an unparalleled partner. Why would JAL not want to partner with an airline that has their markets well convered and allows JAL to fly premium and long-haul routes that do not interfere with most international expansion plans (i.e. where the untapped markets are, i.e. where the real money is)?
Originally posted by Peter Kesternich View PostAs for SkyTeam - I think they were willing to take over JAL and help turn them around. But they won't be too sad now. JAL may still go completely belly-up and there's no real threat to SkyTeam from JAL staying in OneWorld. I don't see OneWorld threatening SkyTeam's number 2 spot in Asia any time soon.Whatever is necessary, is never unwise.
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That's all well and true, but SkyTeam is a far more integrated alliance than OneWorld (look, for example, at the trans-Atlantic joint ventures) and OneWorld has a bad history of treating partners that are in financial trouble. Remember how they left their founding member Canadian Airlines to the Air Canada wolves?
As for encroaching on a weak carrier's domain, it's precisely the aim of an alliance to prevent encroachment. Within the alliance, the partners should work together and share the revenue, rather than trying to steal each other's customers. SkyTeam would be a much safer place for JAL then OneWorld, because it would offer the protection of a lot more airlines in te Asian region. And bear in mind that there is always Star Alliance, who have All Nippon, Asiana,Air China, Thai and Singapore Airlines. Try pitting OneWorld in Asia against THAT powerhouse. Chances are they won't be as successfull as SkyTeam would have been. In the long run, I think not switching alliances will be a bad move for JAL.
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Originally posted by Eric Diffoot View PostJAL To Stay With American And Oneworld
Oneworld member Qantas, parent of Jetstar, offered to “share expertise” with JAL on its two-brand and low-cost carrier business strategy. And American said it would provide JAL more support and cooperation on fleet planning, network analysis, financial forecasting, revenue management and maintenance operations.
Their session with JQ/QF about low cost operations makes more sense.
Originally posted by Eric Diffoot View PostJAL To Stay With American And Oneworld
Delta responded to JAL’s decision by emphasizing its big presence in the U.S.-Asia market, even without JAL. Delta said it remains “well positioned as the number one carrier between the U.S. and Asia” and noted its nonstop service between 10 U.S. cities and Tokyo. Delta also operates a hub at Narita, thanks to its acquisition of Northwest.
Originally posted by Eric Diffoot View PostJAL To Stay With American And Oneworld
Good to hear JAL is staying with Oneworld and news coming from Oneworld.
Whether it turns out to be good news for JL depends on which strategies they adopt from here.
OW really must take this as a big wake up call to work together. eg In AY JL has a potentially excellent partner for European traffic. AY has a good product, reasonable Asian network and a great hub airport to xfer Asian-European traffic, infinitely better than LHR. And it is much closer to NRT. But AY was completely silent during the whole saga and has close to zero cooperation and code share with JL! Simply extraordinary. Both airlines should have teams of people working together to optimise route and marketing strategies.
Instead JL sits around pondering which US partner to get into bed with it - as if it really matters. Japan - US market is already saturated by a plethora of basket case airlines who will squeeze each other to death, or at least they would if their respective governments allowed them to die. No one is going to make any $ or Yen flying US - Japan routes anytime soon.
IMO the best profit opportunities for JL lie within Asia (because this market is still growing) and also by optimising their relationships with OW partners beyond Asia. But they've apparently still got their eyes shut and so it seems have the other OW airlines.
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