News

Japan Airlines and BA agree tie up

February 9th, 2012 Written by Fred SPENCER

Japan Airlines and British Airways are seeking approval from competition authorities after agreeing a tie-up on routes between Japan and Europe. JAL has confirmed that it has approached the Japanese government over anti-trust immunity and International Airlines Group, BA’s parent, said that it was currently talking to the European competition authorities about the agreement.

A similar tie-up between All Nippon Airways and Lufthansa gained anti-trust approval last year for a joint venture which is due to roll out in April. According to Credit Suisse a tie-up between JAL and BA would mean control of around 23 per cent of the Europe to Japan market. However, this will still be less than Lufthansa and ANA which will control around 37 per cent.

Willie Walsh, IAG’s chief executive, has been attempting to forge closer links with JAL ever since it filed for bankruptcy in 2010. Both are members of the oneworld airline alliance. Other members include Cathay Pacific and American Airlines.

Mr Walsh said that BA already had a good relationship with JAL, adding that he was looking forward to enhancing it. He went on to say that the aviation market in Japan had suffered recently, but that he was confident in the future and with JAL’s business outlook.

Both companies said that closer ties were likely to end in new routes from Europe across Asia, although until the regulators have given the go ahead for the deal, these routes cannot be confirmed.