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Japan Transport Min: Haven't Heard From American On JAL Aid



TOKYO -(Dow Jones)- Japan's transport minister said Friday that he hasn't heard from AMR Corp.'s (AMR) American Airlines on the airline's intention to provide financial support to struggling carrier Japan Airlines Corp. (9205.TO).

"No, we haven't (heard from American Airlines) ... There is no change in our policy to support JAL while (the Enterprise Turnaround Initiative Corp.) is implementing assessment of JAL's assets," Seiji Maehara, Japan's Minister of Land, Infrastructure, Transport and Tourism, said at a regular press conference.

JAL has been talking to both American and Delta Air Lines Inc. (DEL) on a possible alliance and aims to make a final decision on these talks.

American has said Oneworld was the better partner and that a switch to the Delta alliance would cost JAL more than $500 million in lost revenue.

American also said JAL could gain an extra $100 million in annual benefits if the airlines secured antitrust immunity to deepen their existing pact.

Delta said earlier this week that it and its SkyTeam alliance partners would provide a $1.02 billion funding package to JAL.

The proposal includes a $500 million equity injection from SkyTeam, a $300 million revenue guarantee from Delta and a further $200 million in asset-backed funding, as well as $20 million or more in transition costs for the switch.

The two U.S. airlines hope to gain access to congested Tokyo airports and other connection points in Asia through a partnership with JAL.

-By Yoshio Takahashi, Dow Jones Newswires; 813-6895-7561; yoshio.takahashi@ dowjones.com


  (END) Dow Jones Newswires
  11-20-090317ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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