Alliance offers $1bn package
SkyTeam has offered struggling Japan Airlines (JAL) a $1bn package to join it.
The offer includes $500m in capital, $320m in revenue guarantees and transition costs and $200m is asset -backed financing.
It comes after the Japanese carrier, currently a member of the rival oneworld alliance, has announced an H1 loss of €975m (JPY131.2bn)
It is also awaiting details of a government-backed rescue plan which will involve substantial job losses, the axing of routes and a freeze on pay and pensions.
American Airlines (AA), a leading member of oneworld with BA, is also understood to be putting together a rescue package but has not so far announced details.
Both AA and Delta Air Lines, a leading carrier in SkyTeam, have been in talks with JAL since the Asian carrier's financial woes surfaced.
In a statement on its offer, SkyTeam said a long term strategic partnership between the alliance and the airline would create "the largest and most successful airline alliance affiliation for JAL".
It said it would provide "more travel choices and options for JAL's customers and positioning JAL for long-term success as Japan's leading carrier".
The alliance added: "Through a partnership with SkyTeam, JAL will be best positioned to regain international leadership in Japan, Asia and across the globe."
Besides the government rescue plan, JAL also needs to deal with creditors which include the state-owned Development Bank of Japan, the Mizuho Corporate Bank, the Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking Corporation.
The airline said it needed a loan of €1.34bn (180bn yen) as it could run out of cash by November.
There has also been speculation that when the immediate crisis is solved, the current airline president Haruka Nishimatsu will stand down.
www.jal.com [1] www.aa.com [2] www.delta.com [3]