Details of oneworld's offer


oneworld has issued a press release outlining the details of its offer to Japan Airlines. It also explains why oneworld is the "best" option for JAL.

Below are the highlights:

  1. All oneworld airlines' CEO reaffirm support to JAL
  2. The offer to JAL is value at USD1.8 billion, which include cash investment and revenue opportunity.
  3. oneworld has the most suitable hubs and network for JAL and could deliver more premium passengers to JAL than Skyteam.
  4. JAL has to best chance to get antitrust immunity approval with AA and therefore securing a stable and successful future.

So what does the USD1.8 billion investment cover?

  1. AA and TPG will provide up to USD1.1 billion to support JAL for its restructuring.
  2. Seek an anti-trust immunity with AA across the Pacific. This will generate around USD100 million extra revenue a year, which sums up to around USD700 million of additional revenues over the next 10 year on a net present value basis.
  3. British Airways, Finnair, LAN and Mexicana offer a more extensive coder-sharing. BA will also moves its Narita operation to Terminal 2 to improve connectivity.
  4. Iberia proposed to expand code-sharing destinations. CX is holding similar talk with JAL.
  5. Qantas will provide its expertise in developing its value-based airlines, Jetstar, if JAL wants to do the same thing.
  6. Nothing from Royal Jordanian nor Malev

So USD1.8 from AA and TPG and other members are only offering extra code-sharings? From the offer, we can see who is more desperate to keep JAL in oneworld  Delta has tried to steal JAL from oneworld for months now and CX is now in talk with JAL!?!? Isn't this a bit too late. But at least they are doing something unlike Royal Jordanian and Malev.



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