The Business Travel Coalition, a lobby group representing around 300 corporations, has warned that the tie-up would reduce competition and push up fares.The other, bigger news is that it is almost certain that JAL, its creditors and sympathisers within government will be unable to fend off bankruptcy procedures.
He will have sterner sacrifices on which to meditate during his long weekends.UPDATE, January 19th: JAL is now over the brink.
ANSWERS could soon be provided to the two big questions hanging over Japan Airlines (JAL): will it apply for bankruptcy, and with which global alliance does its future lie?
A global grounding for three months after battery fires in January shook the confidence even of loyal Japanese buyers though JAL denies it is turning its back on Boeing because of the delays and technical issues.
JAL, which has to deal with nine internal unions, has only just persuaded its biggest union to agree to a larger wage-cutting deal.
According to Nicholas Cunningham of Macquarie, a bank, JAL received more than ¥500 billion in debt waivers as part of its recovery.
Though they are part-owned by JAL and ANA, competition may dent the high prices the full-service carriers have typically charged on domestic and short-haul international routes.
The long-haul Dreamliner is part of that strategy: JAL is opening potentially lucrative new routes such as the one it already flies between Tokyo and Boston.Like ANA, it could also benefit from and help to stimulate the surge in Japanese businesses that are moving manufacturing abroad.
Analysts say the upstarts will thrive only if ANA and JAL step out of their way, letting them shake up the domestic tourist market.
Yuko Kawamoto, a business professor at Waseda University, sees the DPJ's embrace of the old IRCJ team as an indication that the new government might make real changes.In this section Thawing out Flights in the ointment Energetic manoeuvres Feast and famine Cleverly simple Copycats Shot in the dark Thriving on adversity ReprintsBut JAL exposes the contradictions in the DPJ's policies.
JAL would go on to become, before the bubble burst, the world's largest cargo airline.So next time you're enjoying some Copper River salmon or Atlantic bluefin, drink a toast to Mr Okazaki, who made it all possible.
