New Plan to Help JAL Offered by American, and Other Airlines

New Plan to Help JAL Offered by American, and Other Airlines

As has been confirmed by AMR Corp., the parent facility of American Airlines, the carrier, in association with three other airlines, has offered a whole new plan to aid the struggling Japan Airlines Corp.

Under the new plan, JAL has been offered $2 Billion over the coming three years, and the proposal has been put forward by American in conjunction with its fellow OnceWorld Alliance's founding members British Airways, Qantas Airways and Cathay Pacific Airways.

As confirmed by American, the offer "includes $1.5 billion of continuation of the ongoing revenue that JAL realizes from OneWorld today, $300 million in incremental revenue guarantees from American Airlines, and approximately $200 million in enhancements from British Airways".

The new plan is being looked upon as a part of an effort to keep JAL as a part of the OneWorld Alliance, which Cathay Pacific believes is "a key to [the alliance] maintaining a strong presence in the strategically important and fast-growing Asian marketplace".

Previously, American had offered to invest about $1.1 Billion in JAL in association with another investor, and had later sweetened the offer to $1.4 Billion, but reports had speculated that Asia's largest carrier would refuse to accept it.

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