American Airlines Asks Japan Airlines to Turn Down SkyTeam
The on going fight for Japan Airlines is starting to heat up even more. This news comes as American Airlines warned the airline last week that it would face enormous risks if they choose to join the SkyTeam Alliance and leave their alliance, Oneworld.
The American Airlines vice president for Asia and the Pacific, Theo Panagiotoulias, went on to tell reporters in Tokyo just last Thursday that the Oneworld alliance was providing Japan Airlines with 500 million in annual revenue. He pointed out that his alliance would give a further $100 million if both parties were successful in acquiring antitrust immunity after the conclusion of open skies talks between Japan and the United States.
The vice president of American Airlines went on to say that there is very minimal risk in staying with Oneworld; however, joining SkyTeam has enormous risks. He noted that there is not a war between the two alliances over Japan Airlines. He said that this is just the right choice for Japan Airlines’ future.
Theo Panagiotoulias continued that Japan Airlines’ defection to Skyteam would pose regulatory risks at Delta. Japan Airlines currently accounts for over 60 percent of the United States and Japan market traffic. He said that, overall, it could jeopardize Tokyo’s position as an international hub in the Asia Pacific region, as the alliance also includes Korean Air.
He finished up by saying that Japan Airlines really needs to focus on quality revenue right now and not quantity revenue. American Airlines’ overall value proposition is far superior to anything that Delta has out on the table so far.
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