Japan Airlines and American Airlines Increase International Cargo Flight Destination and Cargo Capacity

Airlines to Utilize Worldwide Networks to Offer Customers More Routing Choices and Increased Cargo Capacity Between Asia and the Americas.

Japan Airlines (JAL) and American Airlines (American) have embarked on a closer cooperation aimed at strengthening international cargo operations for the two airlines. Their agreement, concluded in April this year, provides cargo customers with more routing choices, new destinations, and increased cargo capacity by more effectively utilizing the combined worldwide network of both airlines, covering some 300 distinct destinations worldwide, while maximizing the value of their combined routes between Asia, the United States, and Latin America.

The two airlines have begun using Los Angeles, Chicago, Dallas/Fort Worth, New York and Honolulu as key transfer points for cargo traffic in the United States and Tokyo, Osaka and Nagoya as transfer points in Japan. The agreement enhances the significance of Honolulu as an important transfer point for cargo between Asia and the Americas. The tighter cargo relationship is expected to enable both airlines to provide their respective customers with additional value, while maximizing the utilization of cargo capacity for both airlines.

In addition, new synergies between the carriers’ express products will now provide seamless transfer of express shipments between the airlines. Shipments which do not exceed 100kg will now receive immediate confirmation of space on both airlines, when customers select JAL’s J-PRIORITY and American’s EXPEDITE(SM) product for the routing.

The joint business agreement between JAL and American which began April 1, 2011, is expected to benefit customers on many levels, including cargo. Both airlines continue to explore ways in which closer cooperation can bring increased benefit to customers.

About JAL Cargo

JAL Cargo, a division of Japan Airlines Co., Ltd., (JAL), provides cargo transportation services within Japan and to 17 countries and regions or 33 overseas airports utilizing the airline’s operations of approximately 1,000 flights a day on 109 domestic routes and 47 international routes (as of May 1, 2011). JAL, awarded the most punctual major global airline in 2009 and 2010, is a member of the oneworld® Alliance and has a global passenger network reaching more than 225 airports in 38 countries and regions together with its codeshare partners. With a fleet of some 220 aircraft including Boeing 777s, 767s, 737-800s, and Brazilian-made regional jets, Embraer E170, JAL serves destinations in Asia, Europe, and Oceania, as well as in North America including New York, Chicago, Los Angeles, San Francisco, Honolulu and Vancouver. JAL CARGO, which carried 897 thousand tons of payload in fiscal year 2010, offers a series of high-quality, tailored services collectively known as J Products that cater to the unique needs of various shipment that make all kinds of transportation possible. For more information, visit: www.jal.co.jp/en/jalcargo/.

About American Airlines Cargo

American Airlines Cargo(SM), a division of American Airlines, Inc., provides over 100 million pounds of weekly cargo lift capacity to major cities in the United States, Europe, Canada, Mexico, the Caribbean, Latin America and Asia. American, American Eagle and the AmericanConnection® regional airlines serve more than 250 cities in over 50 countries with more than 3,600 daily flights. The combined network fleet numbers more than 900 aircraft. American provides one of the largest cargo networks in the world, with cargo terminals and interline connections available across the globe.

AirAsia X launches Cheap Flights Between Kuala Lumpur and Tokyo

Malaysian long-haul budget airline AirAsia X is to launch regular flights between Kuala Lumpur and Tokyo starting December 10 airport officials said.

Its inauguration flight is scheduled to depart from Tokyo’s Haneda airport at 11:45 pm local time. The carrier plans three flights a week connecting the Malaysian capital with the Tokyo airport, the officials said.

It will be the first foreign budget airline authorised to use Haneda, which began handling an expanded array of international flights in October when it opened a fourth runway and a new terminal.
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Haneda is considered more practical than its sister airport Narita as it is located only 30 minutes from Tokyo, roughly half the amount of time it takes to travel to Narita, which is 60 kilometres from the capital.

AirAsia X plans to sell a one-way ticket for 8000 yen ($A95 excluding taxes) for an economy seat from Japan to Kuala Lumpur as an opening discount, compared with economy fares of more than 200,000 yen offered by current route operators.

AirAsia’s entry into the Japanese market is expected to further boost competition in a space that is set to become increasingly crowded as more budget carriers enter the fray.

In September Japan’s All Nippon Airways said it will establish a low-cost carrier by the end of the year that will eventually operate international and domestic short-haul routes, anticipating booming Asian demand.

Debt-hit Japan Airlines has also said it is also looking into the possibility of launching a low-cost carrier.

Japan’s existing cheaper domestic carriers such as Skymark and Air Do have been unable to offer the kind of heavily discounted fares associated with budget airlines in the United States and Europe due to higher operating costs.

Qantas Airways’ budget Jetstar airline already flies between Australia and Japan from Osaka and Narita.

Japan Airlines to Code share on Qantas Airways’ Singapore-Brisbane Flights

One world alliance members Japan Airlines and Qantas Airways are expanding their long-running code sharing partnership to allow JAL to keep Brisbane in its network after it suspends direct flights there.

From October 1, Japan Airlines will code share with Qantas on flights operated by Qantas between Singapore and Brisbane.

The expanded code sharing agreement with one world partner Qantas Airways allows JAL to retain Brisbane in its international network as it suspends its direct flights between Tokyo Narita and Brisbane from September 30, after 22 years of flying to the Australian city.

JAL and Qantas first started to code share on flights in April 1986. At present, JAL markets flights operated by Qantas from Singapore to Adelaide, Melbourne and Perth. JAL will continue to serve and support customers traveling between Australia and Japan for leisure or for work with these code share arrangements and two daily flights connecting Tokyo and Singapore.

Reservations and ticket purchase for the code share flights begin on October 1.

The new code share will see JAL listing Qantas’ daily Singapore-Brisbane flight QF052 in its booking database as JL5077. This flight departs Singapore’s Changi International Airport (SIN) at 9:25 p.m. and arrives at Brisbane International Airport (BNE) at 6:50 a.m. the following day.

JAL is listing Qantas’ flight QF051 between Brisbane and Singapore as JL5078. This flight leaves BNE at 1:55 p.m. and arrives at SIn at 7:50 p.m. local time the same day.

To allow passengers flying on JAL tickets to travel between Tokyo and Brisbane via Singapore as conveniently as possible, Japan Airlines recommends its connecting flight JL519 between Tokyo and Singapore, which leaves Narita International Airport (NRT) at 10:55 a.m. and reaches SIN at 5:10 p.m. local time; and JL710 from Singapore to Narita, which departs SIN at 10:40 p.m. and lands at NRT at 6:45 a.m. the next day local time. Both flights operate daily.

Japan Airlines Plans to Cut 10 International Flight Routes

Japan Airlines plans to cut 10 more international routes and return more than 100 planes, but further Hawaii service cuts are not expected.

The largest Asian airline by revenue, JAL has been operating in bankruptcy since January. It has already downsized substantially. The new plans are contained in a reorganization plan submitted.

JAL notified Big Island officials last week that it would stick to its plan to end flights to Kona, but the rest of JAL’s service to Hawaii operates fairly full and is unlikely to be affected by the next round of downsizing.

The reorganization plan seeks forgiveness of much of its $11 billion in debt, in return for cutting payroll, already below 50,000, to about 33,000, mostly through retirements and the spinoff of non-core subsidiaries.

JAL has several flights a day from Japan to Hawaii. Its competitors in the corridor include All-Nippon Airways, United Airlines, Delta Air Lines (former Northwest routes), and, in November, Hawaiian Airlines.

Airline industry analysts think JAL downsizing, which will include cutting back several domestic routes within Japan, provides an opportunity for ANA, which might add routes or simply raise fares as fewer choices are offered.

JAL plans not only to reduce flights but also to reduce deals, eliminating, among other things, a longtime policy of giving cut rates to people who flew on their birthday.

All Nippon Airways Cooperation With Star Alliance to Add Service on International Flights at Haneda Airport, Tokyo

All Nippon Airways Co. is set to boost its international service amid a travel upturn in Asia by capitalizing on its Star Alliance partnerships, recent government aviation agreements and new slots at Tokyo’s Haneda airport.

Demand for international flights has grown in March and April, led by increasing travel to China, ANA President and Chief Executive Shinichiro Ito said in an interview.

“The worst is over,” said Mr. Ito, referring to the industry’s travails in the past couple of years due to the global downturn.

“It is vital how we can transform the growth in customer numbers to growth in income per customer,” he added, noting that income growth usually follows a pickup in passengers by several months.
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American Airlines may invest more for JAL alliance

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.
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American Airlines Steps Up Efforts To Woo JAL

American Airlines on Thursday stepped up efforts to save its partnership with Japan Airlines, the troubled carrier that is the lynchpin of its Asian network, by promising a $1.1bn investment to support the group.

The investment – much of which would be provided by US private equity group TPG – exceeds a rival offer from Delta Air Lines, which is trying to lure JAL away from Amercian’s OneWorld alliance.

Last month Delta and its SkyTeam partners offered to inject $500m of new equity into JAL and to extend another $500m in asset-backed financing and compensation for the cost of switching teams.
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JAL Shares Slump Amid Doubts, Downgrades

Shares of struggling carrier Japan Airlines Corp. touched a new all-time low Friday as investors spooked by the state of its balance sheet shrugged aside government assurances that a state-backed restructuring plan is coming together smoothly.
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Japan Airlines Post $1 Billion Q1 Loss News

Japan Airlines Corp (JAL) said on Friday it suffered a US $1 billion loss in the April-June quarter which is larger than its loss for the entire last year. The carrier’s revenues took a heavy hit under the double whammy of the economic downturn and the outbreak of swine flue resulting in a net loss of ¥99.04 billion in the three months ended 30 June. Read more