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Monday, January 11, 2010


  Delta-Japan Airlines Coalition Faces Opposition

Delta-Japan Airlines Coalition
The Business Travel Coalition, a group on behalf of business travelers is conflicting the planned tie up between Delta Air Lines and ailing Japan Airlines as unpleasant for competition.

Kevin Mitchell, chairman of the Business Travel Coalition, based in Brussels, stated that the projected SkyTeam alliance would probably create a monopoly, totaling 62 percent market share on routes connecting Japan and the U.S, up from a third.

The group representing 300 global corporations suggests that Japan Airlines Corp. should remain in its alliance called oneworld with American Airlines. Kevin Mitchell also uttered doubts a Delta-JAL tie-up might clear U.S. antitrust regulations.

Kevin Mitchell said his group has sent a letter to Seiji Maehara, Japan's transport minister, conveying such views, and also made a copy available to the media.In the letter, the group stressed the significance of Japan-U.S. air routes, with 6.3 million travelers a year, and warned a Delta-JAL tie-up would be too dominant.

The letter conveyed that JAL lingering in the oneworld alliance with American Airlines is evidently best for competition and consumer choice.

Delta has expressed assurance that in case it forms a union with Japan Airlines the tie-up will get consent from regulators. American has constantly challenged that claim .

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