In efforts to lure Japan Airlines from American Airlines, Delta Air Lines and its alliance partners said they are making a billion dollar offer to the loss-making airline.
The offer includes a $500 million capital investment, $300 million in short-term revenue guarantees, and $200 million in asset-backed financing for the airline. Delta and the SkyTeam alliance would also cover the entire cost for Japan’s flagship carrier to transfer from American’s oneworld alliance, estimated to total $20 million.
Both Delta and American are striving to expand their international reach through global partnerships, making Japan particularly appealing because of its extensive routes in China and Japan.
Yesterday, Japan’s stocks sunk to a record-low finish of 98 yen, a 3.9 percent decline.
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