This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

No Losers in JAL Battle

Stocks in this article: DAL UAUA AMR

DALLAS ( TheStreet) -- Nearly everybody won in the battle for a partnership with floundering Japan Air Lines.

Bankrupt JAL said Tuesday it will retain its partnership with American (AMR). The announcement ended months of negotiation with Delta (DAL - Get Report), which had sought to take over as the U.S. partner to the best positioned carrier at Tokyo Narita, the most important airport in Asia.

Japan Airlines

In the end, JAL decided it could not afford to switch partners at the start of an estimated three-year restructuring process. "If we don't survive the first two years, there will be no future for JAL after the third year of restructuring," Daiji Nagai, senior vice president of corporate planning, told reporters, The Associated Press reported. "We decided that we can minimize risk by staying with American," he said.

For American and the struggling Oneworld alliance, the benefit is obvious. The pair needed to retain a competitive position in Asia, especially because they have for so long been disadvantaged in Europe. There, rivals Delta and United (UAUA) have antitrust immunity with their principal partners, but regulators continue to dawdle over whether to allow American and British Airways to make the exact same arrangement.

American CEO Gerard Arpey deserves credit. Particularly after the Japanese declared they did not need U.S. investment in their flag carrier, American made a strong case that regulators would never approve a JAL/Delta bid for antitrust immunity across the Pacific. Was that case realistic? Probably, although in every airline merger and ATI application in history, experts and lawyers on both sides have offered assurances that their cases are certain to predominate.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs