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Qantas to help JAL set up leisure carrier?

written by WOFA | November 13, 2009

Qantas has offered to assist Japan Air Lines to set up its own low cost carrier operation as part of efforts to revive the ailing airline, while American Airlines has stepped up its efforts to prove it is a better partner for the airline than rival Delta Air Lines.

Qantas has offered assistance to JAL to allow it to set up a low cost subsidiary similar to its Jetstar subsidiary as part of efforts by oneworld carriers to help the loss making carrier, but maintains that it will not invest any cash. “We know JAL . . . is interested in their own low cost operation, so one of the great things Qantas, through oneworld, can aid JAL with is our experience of setting up a low cost operator,” CEO Alan Joyce said on November 11.

“We’re the only full service carrier that’s (successfully) done it, JAL are looking at this for their leisure markets.”

Meanwhile, American Airlines CEO Gerard Arpey has stepped up his carrier’s campaign to secure an alliance with JAL, noting that keeping the airline within the oneworld alliance would offer it more benefits than the competing Delta led SkyTeam alliance. “We are convinced that we can deliver the most meaningful alliance value to JAL, by a wide margin,” he was reported as saying in USA Today.

Recent reports have also linked American to a possible joint bid which may involve US private equity firm Texas Pacific Group. The airline has not confirmed any TPG involvement in its efforts to secure an alliance with JAL, but TPG chief financial officer Tom Horton did note that the company would be a “natural partner for American.”


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