American ready to do more for JAL, as Delta emerges as favored backer+

TOKYO, Jan. 6 Kyodo -
American Airlines Inc. said Wednesday it remains flexible about enhancing its
financial package for Japan Airlines Corp. in a desperate pitch to keep the
Japanese carrier within its global airline alliance after rival Delta Air Lines
Inc. recently emerged as its favored partner.
Michael Wascom, managing director in charge of international and government
affairs at American Airlines, added that the company can share its corporate
turnaround experts while other oneworld alliance partners also stand ready to
play an ''integral'' role to prevent JAL from undergoing court-backed
bankruptcy proceedings.
''Our proposal is a very fluid document that is constantly being reviewed and
considerations are being given if necessary to adjust it accordingly,'' Wascom
said in an interview with Kyodo News in Tokyo.
''We want to make sure, under any future scenario, that we are offering the
most useful, beneficial total value package to Japan Airlines,'' including
personnel resources that have helped the U.S. carrier to avoid bankruptcy
during its own financial troubles, he said.
American Airlines, a unit of AMR Corp., has previously said it is prepared to
invest up to $1.1 billion with other members of the oneworld alliance led by
American Airlines and British Airways Plc, as well as U.S. private-equity firm
TPG Inc.
But media reports have spread that Japan's top carrier is leaning toward
defecting to the SkyTeam grouping including Delta and Air France-KLM Group,
partly to gain access to the more expansive transpacific services offered by
the world's largest carrier.
Sources have also said that the government-backed Enterprise Turnaround
Initiative Corp. of Japan, tasked with JAL's turnaround, is eyeing court-led
rehabilitation similar to the Chapter 11 bankruptcy protection filed by General
Motors Co. last year.
Wascom slammed the reports on Delta as ''unfounded'' and ''misleading,'' saying
JAL and ETIC have confirmed that they have not reached any final decision.
American Airlines officials plan to meet with JAL later this week, he added.
''I think all of us at American Airlines are still very optimistic that we will
be able to maintain and enhance our alliance partnership with Japan Airlines,''
Wascom said.
''We are best-positioned to assist JAL in its own restructuring because we've
taken the appropriate path to restructure without having to go through
bankruptcy,'' he emphasized in an apparent jab at Delta, which merged with
Northwest Airlines after they both filed for Chapter 11.
While declining to disclose details, Wascom added that oneworld is also in
negotiations to court other Asian carriers which have not aligned with any
existing airline alliances, and highlighted that JAL will gain access to
networks in emerging countries if it remains with oneworld.
Both American Airlines and Delta have launched a rare public and scalding
battle over JAL as the government-backed body comes close to compiling a
rehabilitation plan, which may include a bankruptcy option that would entail a
significant downsizing of its workforce and unprofitable domestic and
international routes.
''There is no airline to my knowledge today that has returned itself to a level
of profitability and a level of global service by taking the path to
bankruptcy,'' Wascom said.
''It's (JAL is) the natural flag carrier of this country with a proud history.
That needs to be maintained,'' he said.
==Kyodo