Alitalia744 From United States of America, joined Mar 2000, 4780 posts, RR: 43 Posted (5 years 4 months 3 weeks 3 days 13 hours ago) and read 6248 times:
Interesting article on AA's situtation in regard to the JAL bid. If they win, they'll no doubt weaken their overall credit strength, however some view the stakes even higher if they lose their alliance with JAL.
Seems DL would face the same credit issues, however it would overall strengthen their ability to successfully compete in Japan and boost the SkyTeam alliance, which I and many others would argue takes a low-level seat compared to *Alliance.
While Japanese companies are selling all their stocks on JL, AA/DL are buying, I think that DL no matter how much they pay with Skyteam will save money in the long run,that is why they don't care, they may be losing that kind of money already there plus they would get a big partner in Japan, that is why their credit may not be hurt much, probably that is why this has gone so high, I think Delta wanted to show their muscle by announcing how high their bit was going to start, and by offering assistance at once If JL moves to Skyteam.
AA gets hurt here not Oneworld, AA is fighting this along with TPG and this is not going to be an easy battle to win at all. which brings the questions that I' ve been asking my self for a while, How united is Oneworld, how much does Oneworld partners value AA?
Flybyguy From United States of America, joined Jun 2004, 1803 posts, RR: 1
Reply 9, posted (5 years 4 months 3 weeks 3 days 9 hours ago) and read 5605 times:
I think if JAL drops Oneworld and goes to Delta and Skyteam AA's pacific business is over. They will have no real partners Asia and what's worse, their pilot's union refuses to do any substantial pacific flying. I think that JAL would be making a good strategic decision by cooperating with one of its major regional competitors (Delta/Northwest). A combined effort between JAL and Delta will give ANA a run for their money. AA has everything to lose in this arrangement because they will effectively be shut out of the market in the pacific. Arpey will probably get a no-confidence vote from the board and the boot if he allows AA to lose JAL.
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