American Airlines is upping the ante for an alliance with Japan Airlines in an effort to outbid Delta and gain access to JAL’s trans-Pacific routes.

American Chief Executive Gerard Arpey told JAL Wednesday that his company will not compete with the financially struggling Japanese carrier for connecting passengers to other points in Asia if it remains American’s partner in the Oneworld alliance, according to The Associated Press. American’s exclusivity offer would involve American feeding traffic between the U.S. and Japan but not elsewhere in Asia.

American, which has offered about a $1 billion investment for a deeper alliance with JAL, also may raise the amount “depending on circumstances,” Arpey told reporters following a meeting with Japan’s transport minister Seiji Maehara, according to the Wall Street Journal.

Delta, which has offered about $1 billion, has said it could provide far more passengers to JAL than American, the AP report says.

The battle for JAL has intensified since U.S. and Japanese negotiators agreed last Friday to an “open skies” treaty that will lift restrictions on trans-Pacific routes and possibly lower fares stemming from increased competition.

The deal would deregulate air service between the countries and allow U.S. and Japanese carriers to seek antitrust immunity as they coordinate on international routes and pricing and share costs and revenue.

While American and Delta pursue JAL, United Airlines plans to form an alliance with All Nippon Airways and Continental Airlines.

source : usatoday.com