Delta is not taking “no” for an answer.
Delta said Monday it still intends to pursue a partnership with JAL to expand its Asian network, a day after reports emerged that the Japanese carrier will decline a cash offer from either Delta or American for a stake in its operations, AJC reporter Kelly Yamanouchi writes.
“As we have said from the beginning, the primary goal for Delta is building a long-term strategic alliance with Japan Airlines, benefiting both airlines tremendously,” said Delta spokesman Trebor Banstetter in a written statement. “Delta stands ready to back this partnership with financial assistance, but for us this isn’t a necessary component of an agreement.”
If Japan Airlines restructures without investments from Delta or American Airlines, industry observers say that may be better for both the Japanese carrier’s stability and the U.S. carriers’ finances, Yamanouchi writes.
JAL is already an American partner in the Oneworld global alliance. But with JAL in financial straits, Delta wants to lure JAL into its SkyTeam alliance with a $1 billion proposal. American Airlines recently upped its offer to $1.4 billion. Delta president Ed Bastian and other executives have been in Tokyo for discussions on a partnership.
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