JAL picks Delta over American as bankruptcy looms closer

JAPAN Airlines (JAL), Asia's largest carrier, has selected Delta Air Lines over American Airlines as its alliance partner as bankruptcy protection filing looms ever closer.

JAL is also considering withdrawing from air cargo under its bankruptcy rehabilitation plan, reports Kyodo news service.

That means that the Japanese flag carrier will drop OneWorld alliance led by American Airlines and go with Delta-led SkyTeam. JAL plans to make a formal decision by the end of the month.

JAL and Delta also are expected to petition the US Department of Transportation for antitrust immunity to jointly operate transpacific services by mid-February, according to Newark's Journal of Commerce. News of the partnership comes as JAL, which has JNY1.4 trillion (US$15.4 billion) is ready to file for bankruptcy protection.

JAL will file for bankruptcy protection under the Corporate Rehabilitation Law, after which the state-run Enterprise Turnaround Initiative Corp will decide what to do next with the airline's assets.

JAL president and CEO Haruka Nishimatsu is expected to resign immediately after the airline files for bankruptcy protection. Kazuo Inamori, honorary chairman and founder of electronics firm Kyocera, will lead JAL's new management as chairman and CEO, said he report.

Source: www.schednet.com