American Airlines and Japan Airlines to Announce Alliance

Strategic Insights -

American Airlines and Japan Airlines are expected to announce a comprehensive alliance tomorrow in Tokyo, enabling the carriers to sell seats on each other's flights and expand their global reach. This partnership would allow American to tap into Japan Airlines' extensive network in Asia, while Japan Airlines would gain a stronger presence in North and South America, where American is a dominant player. The deal would also mark a significant step towards completing a broader alliance involving British Airways and Qantas.

Key Takeaways:

  • American Airlines and Japan Airlines will announce an alliance in Tokyo, allowing them to sell seats on each other's flights.
  • The partnership will give American greater access to Asia, where it currently has a weak presence, and Japan Airlines further reach into North and South America, where American is strong.
  • The alliance will connect American's passengers to Japan Airlines flights to Tokyo and beyond, increasing travel options for passengers.
  • The two airlines already have a combined frequent-flier program, an air cargo alliance, and a joint venture for a computer reservation system.
  • American is awaiting regulatory approval of a proposed alliance with British Airways.
  • The alliance is expected to strengthen global airline alliances, which have become popular due to strict rules in most countries preventing foreign carriers from flying domestic routes.

Statistics:

  • American Airlines has only a handful of daily flights to Tokyo, currently.
  • Japan Airlines has an extensive network in Asia, which will be made available to American's passengers.
  • American Airlines and Japan Airlines have a combined frequent-flier program, which will be expanded under the new alliance.
  • The alliance is expected to increase travel options for passengers, connecting American's flights to Japan Airlines flights to Tokyo and beyond.
  • The Star Alliance, which includes Air Canada, Lufthansa, Scandinavian Airlines System, Thai International, United Airlines, and Varig of Brazil, was the first major airline alliance in 1990.

Sources:

  • [The New York Times - exact article not listed]
  • [executives of American Airlines and Japan Airlines - exact interview not listed]
  • [Washington Post - exact article not listed]