Reversing its longtime stance of sticking to bilateral agreements, Japan Airlines Corp. said Tuesday it has decided to join oneworld -- the global airline coalition featuring British Airways, American Airlines and other six carriers.
Leading carriers began jumping on the global alliance bandwagon in the late 1990s, but JAL was hesitant to follow suit because it thought building bilateral tieups was the best way to go for an airline that already had a large international network.
But a lot of things have changed since then, JAL President Toshiyuki Shinmachi said.
"A global alliance in the beginning was more like a collection of individual airlines," Shinmachi said in a hastily arranged news conference in Tokyo. "But over time, we have seen the maturation of comprehensive products provided by alliances including frequent flier programs, through check-in procedures and shared facilities such as lounges."
These services and amenities have become important factors when choosing which carrier to fly, and JAL wants to use the alliance to attract customers, JAL officials said.
By taking advantage of oneworld's joint facilities use and maintenance part purchases, JAL will be able to slash costs while making use of the multilateral group's international network, Shinmachi said.
It will also be able to enhance international services while expecting to see an increase in revenue, he said, declining to quote specific figures.
He also said global alliances are increasingly gaining the power to influence the entire industry.
Most of the world's major airlines are members of one of three major multilateral groups -- Star Alliance -- the world's largest airline coalition -- SkyTeam, which consists of nine carriers, including Continental Airlines and Delta Air Lines, and oneworld.
JAL's archrival All Nippon Airways Co. joined Star Alliance in 1999. Star boasts 16 members, including Lufthansa and United Airlines, and intends to let two other carriers join in the near future.
ANA said it enjoys an extra 10 billion yen in annual sales on average through its partnership with Star Alliance.
Joining oneworld does not mean JAL will dissolve its ongoing bilateral agreements, Shinmachi said, noting the carrier can benefit from both bilateral and multilateral tieups.
However, aviation analyst Kazuki Sugiura doubts whether JAL's entry into the global alliance will benefit it in the long run.
"Joining the alliance means that you will also have to shoulder the burden of" sharing computer systems and other facilities, he said. "JAL has already begun reorganizing its international network by withdrawing from unprofitable routes and it does not seem that JAL needs to rely on the network" covered by oneworld.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.