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Alaska may join JAL-American Pacific joint venture

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Alaska may join JAL-American Pacific joint venture
Policy
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Ben Minicucci CEO of Alaska Airlines | Alaska Airlines

Alaska Airlines may soon join the joint venture between Japan Airlines and American Airlines. A Japan Airlines executive has indicated that discussions are underway to possibly include Alaska Air Group in their Pacific partnership, as reported by ch-aviation. This venture allows both American and Japan Airlines to offer flights across the Pacific, optimizing their networks.

Joint ventures are common in the airline industry for increasing revenue through network synergies, especially benefiting business travelers. They often occur between airlines sharing an alliance, strengthening these relationships further.

Ross Leggett, Senior Vice President for Route Marketing at Japan Airlines, stated the intention to expand their joint venture but stopped short of confirming Alaska Airlines' inclusion. He remarked: "There are obviously challenges. [I hope we can get to] the stage where we can make a solid announcement."

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The challenge lies in American and Alaska competing on several US routes that could connect Japan Airlines passengers. Revenue-sharing on these routes would need careful evaluation by the joint venture partners.

The existing agreement between Japan and American dates back to 2011, covering 16 routes between Japan and the US. Both carriers are part of the global oneworld alliance, along with potential new member Alaska Airlines.

Alaska already has a codeshare agreement with Japan Airlines for flights between Japan and the US West Coast, and some domestic Japanese routes. The US Department of Justice recently approved Alaska's acquisition of Hawaiian Airlines, which is also involved in codesharing with Japan Airlines.

Further collaboration could help Alaska Air Group enhance its international presence and support long-haul services without operating its own long-haul network. However, risks include navigating its relationship with American Airlines since they are currently the only major US-based carriers sharing alliance membership.

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