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Wednesday, February 8, 2012

JAL and BA filed for Antitrust Immunity Application

Japan Airlines (JAL) and IAG's British Airways (BA) have agreed to form a joint business between Japan and Europe. They have filed for the antitrust immunity (ATI) application with the Japanese Ministry of Land, Infrastructure, Transport and Tourism (MLIT) and the European Union (EU) so that once approved they can start coordinate their flight schedules and fares on flights between Japan and the EU.
In the press release issued by JAL (Japanese, English), they made the same pitch about how a JBV will benefit their passengers by giving them more flight choices, enhanced frequent flyer benefits and opportunities to launch new routes. And the revenue-sharing agreement between JAL and BA would allow them to compete with other alliances more effectively.


But to be honest, I have yet to see the benefits of the AA JBV. The only extra frequent flyer benefit JMB members received is the FLY ON bonus on AA flights which I can leave without. But since then JAL has devalued their benefits quite a bit such as eliminating the upgrade points and making their elite status harder to archive. Not to mention those AA members have taken advantage of JAL's great promotion on the SFO route and redeem business class seats with their dirt cheap miles without paying for fuel surcharge. I can't imagine what's going to happen if the JBV partners' FFP can use their upgrade instruments on the JAL flights :o Oh not to mention I have yet to see a decrease in fares. The fare has doubled compared to the 2009 fares (well fuel surcharge was partly to blame for). So yes, this will probably provide JAL and BA competitive edges when they can finally coordinate on fares and schedules, but please, I don't want to see another devaluation coming to JMB and I don't need any reciprocal FFP benefits from BA. The elite bonus is nice but if that meant we have to devalue the JMB, I would rather live without the extra bonus!


Yea I am definitely NOT looking forward to this new joint business no matter how they try to sell it to me :P

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