Air France-KLM Joins List of Suitors for JAL
Updated from 1:50 a.m. EDT
ROISSY, France (
) --
Air-France KLM
reportedly has been talking to
Japan Airlines
about investing in the Japanese carrier, joining suitors
Delta Air Lines
(DAL) - Get Report
and American Airlines, a unit of
AMR
(AMR)
.
Reuters
, citing a source, reports each airline is discussing an investment of $200 million to $300 million in exchange for a minority stake in JAL and a code-sharing agreement. The talks are fluid and the numbers could change, according to
Reuters
.
JAL prefers American because they are partners in the Oneworld alliance,
Reuters
reports, while the Japanese government prefers Delta or Air France-KLM, because it sees them as financially healthier than American.
Japan Airlines said Tuesday it aims to conclude tie-up talks with foreign carriers by mid-October. It also announced plans to slash 14% of its workers under a major restructuring plan.
The prize for the foreign carriers is JAL's ownership of the largest hub at Tokyo Narita, Asia's most important airport because of its importance to Japan and its web of connections throughout the continent.
American
it was talking to JAL. "American is in conversations with Japan Airlines at the senior level," said Roger Frizzell, an AMR representative, declining to elaborate.
Published reports last week had Delta talking with JAL about an investment. Delta has declined to comment.
JAL is seeking to raise $2.8 billion from banks, investment funds and others including airlines, according to Japanese media reports. It has been losing money and is undergoing a state-supervised restructuring.
-- Reported by Joseph Woelfel in New York
.
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