Browsing Posts in JAL

Social Media May be Hot, But It’s Not for EveryoneBNET
I look at social media at the Singapore Airshow to figure out why it matters. (In this case, I don’t think it does.)

Two Reasons Why Japan Air Lines Chose American and oneworld over Delta and SkyTeam -BNET
JAL has chosen American and oneworld, and I think there are really two reasons for it.

United Airlines Posts an Excellent January, Industry Traffic Data RoundupBNET
Huge kudos to United for now offering revenue estimates each month. And January was a great month to start because they had stellar numbers.

Air New Zealand’s Secret Weapon: War Dances and Happy CustomersBNET
One more look at Air New Zealand’s culture thanks to a unique award acceptance speech that saw CEO Rob Fyfe go topless. (If this post sounds a bit odd, it’s because it’s the first one under the new policy that all posts at BNET go through an editor.)

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American Airlines, oneworld Increased Offer to Japan Air Lines May Not Be EnoughBNET
American is desperately trying to keep JAL in oneworld, but it’s not looking good.

oneworld Alliance Will be Much Weaker if Japan Air Lines LeavesBNET
If JAL leaves oneworld, what does it mean for the alliance? It’s not pretty.

do your visa researchantibride
If you’re traveling to exotic lands, make sure you find out the passport and visa rules before you go, otherwise it’ll be ugly.

Delta, American Airlines Court JAL for Routes to AsiaNPR Morning Edition
I chat with NPR’s Adam Hochberg about JAL’s bankruptcy filing and what it means for Delta and American.

The Business Case Behind Boston Logan Airport Making Wireless Internet FreeBNET
Boston Logan has made wifi free. Why would they do that? I thank Google.

Codesharing ExplainedFly HIA Blog
I dug into the world of codesharing for a guest post on the Harrisburg Intl Airport blog.

Charleston Yeager Airport Expertly Uses Social Media During Recent Aircraft IncidentBNET
An airplane aborted takeoff and ran off the end of the runway at Yeager. The media could have blown this out of proportion, but Yeager didn’t let them with their expert use of social media.

More Passengers in Fewer Seats Means Profit for Southwest AirlinesBNET
Southwest announced a profitable fourth quarter this week, even without special items. They appear to be back on track when it comes to revenue.

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US Airways Pilots Infighting Grows Worse by the DayBNET
It appears the US East pilots are tired of fighting the west pilots. Now they’re turning on each other. Unreal.

Airline Capacity Cuts Slow in December, Some Carriers See GrowthBNET
December traffic numbers show some interesting trends.

United Pushes International Presence with Muddled Marketing Message in Denver FightBNET
United is heading back to its Independence Air playbook in its fight in Denver.

Boeing’s Loss of 787-3 Orders is Good NewsBNET
When is a canceled order a good thing? When it allows Boeing to walk away from the 787-3.

Sean Menke Leaves Frontier Airlines, This Can’t Be GoodBNET
Sean Menke is leaving Frontier and Republic, and that doesn’t bode well for the airline.

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Enjoy foreign service on N. American flightsUSA Today
I talk to USA Today’s Ben Mutzabaugh about some of the “fifth freedom” flights operating in the US, including my personal favorite – Air New Zealand from LAX to London.

Airlines Fill Seats with Ease in November, Southwest Leaps AheadBNET
Southwest boosted its loads by 13.3 points in November. Yeehaw, that’s a lot.

Airlines Charging More for That Sought-After Seat The New York Times
I voice the somewhat unpopular sentiment that charging for better seats on the plane is a good thing.

United Airlines Fights Mesa Air Group Over Airplanes (Part I)BNET
United is suing Mesa over the introduction of 10 regional jets into service. This is the story of how they got to this point.

United Splits Its Widebody Fleet Order Between Boeing and AirbusBNET
Why did United split its fleet order? Blame the manufacturers.

United Airlines Sues Mesa Air Group Over Airplanes (Part II)BNET
And now, part 2 of our saga. In short, it seems to me that United wants out and Mesa made a mistake.

Radio Interview on the Noon Business HourWBBM 780 Chicago
I spoke with WBBM on Boeing’s prospects after the United order. My segment begins at the 25 minute mark and goes for about 3 minutes.

Japan and the US Near Aviation Open Skies Agreement, American and Delta SalivateBNET
The Japanese market is one of the most fascinating to watch right now. Here’s a breakdown of what’s happening.

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Japan Air Lines (JAL) is an airline in trouble. It’s losing money faster than a rookie NFL player who just got his first payday, and it needs help. Now, Delta and American apparently have decided to battle over the airline because of its strategic importance.

You oneworld loyalists out there know that Japan Air Lines is a valuable partner over the North Pacific. Southeast Asia is well-covered by Cathay Pacific, but JAL provides an important link in the north between American, Delta, Air France Pursue JALthe US and Japan, and possibly more importantly, China. JAL holds a ton of slots at Tokyo’s Narita and Haneda airports, and those are scarce at desirable flight times. JAL is a natural fit for the alliance.

So when reports started surfacing last week that Delta was looking at pouring money into the bottomless sinkhole that is JAL, a lot of people were scratching their heads. I didn’t – this makes a lot of sense.

Remember, Delta inherited its Tokyo hub from Northwest, and it actually has a decent intra-Asian operation from Tokyo – a legacy from the end of World War II. As they say, to the winner go the spoils. There’s even a subfleet of narrowbodies based in Tokyo to fly some these routes.

My guess is that these routes absolutely suck wind right now. If Delta is really losing a ton of money as I suspect, they could eliminate all those routes and either use the slots to fly to the US or transfer them to JAL. The additional connectivity in Tokyo that they could gain from this link-up would add a bunch more traffic to feed all that US-Tokyo flying Delta does now. (You people in Portland could breathe a sigh of relief, because this could probably help that flight come off the edge of the cliff.)

This move could make a big, immediate difference on the bottom line. If Delta can pour some money in but get it back out very quickly in the form of improved profits, then it’s a no-brainer. Everyone in SkyTeam wins . . . except for Korean. Poor Korean would be demoted to second place in the North Pacific, and it would likely very seriously look at defecting to oneworld where it could take JAL’s place as top dog in the region (or only dog, as the case may be).

Of course, if JAL leaves, oneworld loses, so American has now come back with its plan to invest in JAL. American is pitching it as a strengthening of its partnership that has been in place for years. The airline would set up a joint venture similar to what we’ve seen over the Atlantic with the likes of United and Lufthansa, KLM and Northwest, etc. In other words, they’d split the revenues on flights between the US and Japan.

All this info is coming from magical “sources” and nothing has been confirmed, so we don’t really know any details about what’s being proposed here. There are also rumors that Air France/KLM is in the running, and that would be good news for Delta. Air France and JAL have actually had a legacy codeshare and frequent flier partnership that crosses alliance boundaries. It has strengthened in recent years, so this would add some more credibility to the Delta bid.

This is all pretty interesting to watch. It’s clear that JAL needs some cash, so it’s in a good place to pick the suitor that’s offering the best deal. It’s nice to be wanted.

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