American, TPG offer $1.1b to JAL to block Delta
Friday, 4 December 2009
TOKYO, Dec 3 (Reuters): American Airlines said it and other members of the Oneworld airline alliance along with private equity fund TPG are willing to invest $1.1 billion in Japan Airlines to prevent it defecting to Delta Air Lines and the rival Skyteam group.
Delta has said that it and other SkyTeam members are ready to offer JAL a total financial aid package of about one billion dollar, including a 500-million-dollar equity investment. Delta said Thursday it may also team with a fund to sweeten its proposal.
Both US airlines are keen to gain access to Japan Airlines' network in Asia even as the former national carrier seeks a state bailout to avoid bankruptcy, hit by sliding demand and saddled with some $15 billion in debt.
Delta has said that it and other SkyTeam members are ready to offer JAL a total financial aid package of about one billion dollar, including a 500-million-dollar equity investment. Delta said Thursday it may also team with a fund to sweeten its proposal.
Both US airlines are keen to gain access to Japan Airlines' network in Asia even as the former national carrier seeks a state bailout to avoid bankruptcy, hit by sliding demand and saddled with some $15 billion in debt.