Japan Airlines' President Targets ATI With European Partners

The head of Japan Airlines Co. Ltd said Sunday that he wants to start pursuing antitrust immunity with its European alliance partners to complement a new enhanced pact with American Airlines.

Masaru Onishi, the airline's president, also said in an interview that premium and outbound leisure traffic is recovering well following the March 11 earthquake and tsunami, but JAL faces a tougher haul to reinvigorate inbound tourism from Europe and North America.

JAL launched its immunized joint venture with American, a unit of AMR Corp. ( AMR), earlier this year, with the airlines allowed to coordinate schedules, fares and marketing. The next step will be to pursue similar links with its European partners in the Oneworld alliance, notably the British Airways unit of International Consolidated Airlines Group SA (IAG.LN)."I would like to start preparations soon," said Onishi in an interview at the start of the annual meeting of the International Air Transport Association, the industry's global trade group.

Rival All Nippon Airways Co. Ltd (9202.TO) and Deutsche Lufthansa AG (DLA.XE) last week became the first carriers to receive antitrust immunity to coordinate services between Europe and Asia. Members of the three global alliances-- Oneworld, Star and SkyTeam--already have immunity on a range of trans-Atlantic and trans-Pacific flights.

JAL cut capacity during its bankruptcy restructuring, and the alliance links are seen by Onishi as a key way to expand its network.Organic growth will include routes started with the 787-8s due to arrive--some three years late--from Boeing Co. (BA). Onishi said JAL expects to receive two or three of the aircraft this year.

The airline has identified its first 787 route, with flights from Tokyo to Boston expected to start next April. However, other 787 services are expected to precede the Boston route, and Onishi said he didn't expect any problems with certification of the aircraft.All Nippon, the 787 launch customer, is expected to receive the first one from Boeing in July or August.

JAL and All Nippon have both been expanding international service from Tokyo's downtown Haneda airport following the opening of a new runway last year. Onishi said there had been some transfer of traffic from Narita--until recently the city's sole international gateway--but he said he was confident Haneda's location would help generate additional business.

JAL's traffic during the recent Golden Week holiday was above expectations, though international passenger numbers were down 31% year on year and domestic business fell by a quarter.Onishi said forward premium bookings were in line with last year and outbound leisure traffic was in line with expectations. But while inbound tourist traffic from Asia was recovering, he said stimulating demand from Europe and the U.S. was going to be "very difficult."

Source = nasdaq