American flies above Delta with higher offer to JAL

american-flies-above-delta-with-higher-offer-to-jal
american-flies-above-delta-with-higher-offer-to-jal

Speaking to the media in Tokyo, AMR (AMR) CFO Tom Horton said that his company would work with the Japanese government to save carrier JAL. AMR and private equity team TPG are offering $1.1 billion toward a restructuring package designed to keep the airline flying, and to keep it within the Oneworld Alliance. Some other airlines in Oneworld, which counts both American and JAL as members, may also be making minor investments. AMR is locked in a competition with Delta (DAL) to provide funding to JAL; both airlines would like to get batter access to the carrier's Asia routes, and Delta is hoping to lure JAL into its SkyTeam group. Air travel in Asia is growing more rapidly than in the U.S. or Europe.

AMR will also seek antitrust immunity from the Japanese government for any tie-up with JAL so that the number of routes the airlines could fly would not be heavily restricted.