Delta Air Lines has confirmed to ATI and Flightglobal that the carrier and some of its SkyTeam partners have offered Japan Air Lines (JAL) a $1 billion package covering a non-voting capital investment, revenue guarantees and financing.
A Delta spokeswoman has confirmed the package offered to JAL. Delta and the unnamed SkyTeam partners have pledged $500 million in a non-voting capital investment.
Delta itself has agreed to supply JAL with a $300 million short-term revenue guarantee to minimize JAL's revenue exposure in a switch from the Oneworld Alliance to the SkyTeam grouping anchored by Delta and Air France-KLM. Delta is also offering $200 million in asset-backed financing to JAL.
Additionally Delta has pledged $20 million in transition costs for JAL's move from Oneworld to SkyTeam.
American and venture captial firm TPG are competing with SkyTeam to make an investment in JAL, and earlier today released a joint statement touting their strong capital base and "an ability and willingness to make a substantial investment to assist in JAL's recovery".
American also warns JAL stands to lose $500 million in revenue over the first two years following an alliance switch.
If JAL reamains in Oneworld American says it stands to gain an additional $100 million in annual revenue if American and JAL receive antitrust approval from US regulators. American believes that could happen as early as the middle of next year following the US and Japan reaching an open skies accord. The two sides resume talks next month in Washington, DC.
JAL posted a net loss of ¥32.1 billion ($356 million) for its fiscal second quarter.