Posts Tagged ‘negotiations’

Delta/JAL Deal or no Deal?

Delta Airlines CEO Richard Anderson, wants to have Japan Airlines as part of it’s SkyTeam Alliance. JAL (Japan Airlines) is currently in a marketing alliance with American Airlines. Anderson of Delta believes that an alliance between Delta and JAL would mutually benefit from such an arrangement and that Delta has a stronger potential  for JAL’s future than American.

Currently Delta flies roughly 7,500 passengers daily from the US to Japan. American/JAL only carry less than 1,400 on a daily basis. Delta Airlines is also offering one billion in financial support to JAL during it’s restructuring.  If Japan Airlines were to become a member of SkyTeam Delta could book passengers on JAL flights and in turn, JAL could book passengers on Delta flights. This would help strengthen consumer loyalties and allow the airlines to share in the revenue generated.

Antitrust could be more difficult to get approved with a Delta/JAL alliance than with a similar scenario with American Airlines. However, Richard Anderson doesn’t not believe this will even be an issue. Anderson recently said, “The DOT has approved every antitrust immunity it’s received,” showing his confidence in the ability to move forward in the negotiations.

American Airlines also believes it has a lot to offer JAL, with potentially less headache than a deal with Delta. They call there offer “superior in every way.”

Who will JAL take to the dance? Really it is possible for it to go either way at this moment. The courting of two major airlines heralds a bright future for JAL as it undergoes restructuring. We will keep you updated as more details become available.

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Hawaiian Airlines Set to Strike

Hawaiian Airline Pilots have authorized a strike. The pilots’ union is in contract negotiations with the airline. No walk out has been put into play as of yet and none is set to happen at this point. The 400 pilots had a 98% approval for the strike. It is common for airline pilots authorize a strike during negotiations but that does not necessarily mean that they will strike.

The negotiations have been ongoing for two years now. However, the union says that not once in their eighty year history have they had to go on strike.

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