2nd UPDATE: Delta In Early Talks To Buy Stake In JAL -Source
11 Settembre 2009 - 2:44PM
Dow Jones News
Delta Air Lines Inc. (DAL) is in talks to buy a minority stake
in Japan Airlines Corp. (9205.TO), a move that would fill a key gap
in the U.S. carrier's global alliance strategy, according to a
person familiar with the situation.
The talks started a few weeks ago and could take several months
to complete, said the person.
Delta, the world's largest airline by revenue, lacks a Japanese
partner in its SkyTeam alliance, and is concerned about being
squeezed when international flights start next year from Tokyo's
Haneda airport. Delta operates a hub at the city's Narita
airport.
JAL is developing a new medium-term restructuring plan, and has
been seeking government and private-sector finance for fleet and
route changes and to bolster its pension fund.
While Delta and JAL are both losing money amid the global slump
in air travel, a minority investment of just a few hundred million
dollars could help cement a tie and lure JAL from the rival
Oneworld alliance headed by British Airways PLC (BAY.LN) and the
American Airlines unit of AMR Corp. (AMR). All Nippon Airways Corp.
(9202.TO), Japan's second-largest carrier after JAL, is a member of
the third global alliance, Star.
Japanese media reported Delta will buy a stake worth several
tens of billions of yen in the Japanese airline, making it JAL's
biggest shareholder. The Kyodo news agency reported Delta's stake
will come in the form of a new share issue reserved for the U.S.
carrier
Some analysts were more skeptical, given the scale of the
turnaround needed at JAL. "Delta and JAL could form a code-sharing
alliance...(but) an investment of only Y10 billion or so would be
just a drop in a bucket for JAL," said one Tokyo-based analyst.
A Delta spokeswoman declined comment on reports of a tie-up with
JAL, first reported by Japanese media. A spokesman at JAL said
nothing has been decided. A Oneworld spokesman also declined
comment on the reports, but said JAL was "an important and valued
partner" in the Asia-Pacific region.
JAL expects to show a net loss of Y63 billion in its fiscal year
to March 2010, after losing Y63.2 billion in its last business
year.
The Delta-JAL talks come as U.S. and Japanese negotiators
conclude a three-day meeting aimed at securing an "open skies" deal
to liberalize air travel between the countries.
-By Doug Cameron and Hiroyuki Kachi, Dow Jones Newswires;
813-6895-7550; hiroyuki.kachi@dowjones.com
(Yuzo Yamaguchi in Tokyo contributed to this article.)