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April 8, 2011

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AA, JAL join on China routes

AMERICAN Airlines and Japan Airlines have gained Chinese government approval to cooperate on Chinese routes, including selling each other's air tickets and sharing revenue from the routes, a move that is seen to challenge domestic carriers.

The approval will enable JAL to sell tickets on AA's routes between China and the United States, including the Shanghai-Los Angeles route that was launched on Wednesday, and theynes can also arrange flight schedules to smooth transit time for passengers, said Theo Panagiotoulias, vice president of American Airlines Pacific.

The cooperation is part of a joint business agreement by the two carriers, which launched a trans-Pacific fondness program on April 1 that allows them to coordinate schedules, set fares and jointly promote markets to increase their market shares and revenues.

Their cooperation is expected to further challenge domestic carriers, such as China Eastern Airlines, on China-US routes.

China Eastern now flies directly between Shanghai and Los Angeles and Air China flies between Beijing and Chicago, both of which are also operated by AA.

"We can offer better transit services for passengers from China to the United States with our strong flight network in the US," said Panagiotoulias.

The US carrier's Shanghai-Los Angeles service is its third Chinese mainland route.




 

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