BA and Japan airline in joint move on rivals

BY AGENCIES

BRITISH Airways and Japan Airlines (JAL) are manoeuvring to take on rivals Lufthansa and All Nippon Airways on routes between Europe and Japan after agreeing a joint venture.

JAL said yesterday it had applied to the Japanese government for anti-trust immunity for the link-up, which would have a market share of almost a quarter.

BA-owner International Airlines Group (IAG) is also in discussions with European competition authorities about the revenue-sharing agreement, which is intended to improve profitability and capacity on those routes.

Lufthansa and ANA secured an anti-trust agreement last year for a similar tie-up, which is due to launch in April.

Analysts at Credit Suisse said the BA/JAL joint venture would control about 23pc of the Europe-Japan market, although this would still be some way behind Lufthansa and ANA's combined share of about 37pc.

IAG chief executive Willie Walsh has been trying to join forces with JAL, a fellow member of the oneworld alliance, since 2010 when the carrier filed for bankruptcy.

The two companies said the tie-up would likely lead to new routes between Europe and Asia.

Revenue-sharing agreements have become popular among airlines as a way of circumventing competition laws in various countries, which would prevent a full merger or takeover.