American Airlines Fights for Alliance

American Airlines on Wednesday went public with lobbying efforts for a Japan-U.S. “open skies” agreement, which would pave the way for the carrier to receive antitrust clearance for its oneworld Alliance to include troubled Japan Airlines.

U.S. and Japanese negotiators are in talks in Washington this week on a replacement for an existing bilateral trade agreement that could include an open skies provision. This would liberalize the rules for aviation between the two countries and reduce government intervention. Published accounts say the closed-door talks could extend until Thursday or wrap up today.

At stake for American is an opportunity to enter joint ventures and seek antitrust immunity, which it would need for its oneworld Alliance. That alliance includes British Airways and Spain’s Iberia.

In a news release, American said open skies agreements “end discriminatory aviation policies and are in the best interest of Japanese and American consumers and airlines alike.”

"In an open skies environment, it allows (U.S.) airlines to participate in alliances with Japanese airlines (and) apply for antitrust immunity," said Charley Wilson, managing director of external communications at American. "That antitrust immunity could lead to a joint venture that would bring more consumer benefits to travelers," as well as to the participating airlines and countries in which they operate.

Should American receive the antitrust immunity, that would clear the way for Fort Worth-based carrier to coordinate everything from scheduling and operations to routes and fares with its partners in oneworld.

American maintains that would result in more choices and cost savings for its customers. But critics, such as Virgin Atlantic Airlines, say the oneworld would hurt competition and certain carriers that aren’t part of the group, including Virgin.

Last week, American and its oneworld partners, including TPG Investment Group, sweetened a bid to keep Japan Airlines as an exclusive partner in oneworld by committing to invest $1.8 billion in the troubled airline. That came on the heels of an offer by rival Delta Airlines to pump $1 billion into JAL if the carrier will join the SkyTeam group of airlines.