Hawaiian Airlines and Japan Airlines are set to intensify their relationship through a joint venture arrangement to diversify their routes.
The two airlines have filed an application with Japan's Ministry of Land, Infrastructure, Transport and Tourism and U.S. Department of Transportation that seeks immunity from antitrust laws.
The joint venture aims to give advantages to both the airlines' customers by growing their combined transpacific network. Initiated in March, the antitrust immunized joint venture, or ATI-JV, will allow both airlines to merge their sales and marketing efforts, and share costs and income on their JV routes.
The venture will also make it easier for travelers from Hawaii to visit more places in Asia, and for travelers from Japan to visit Hawaii.
What To Expect
Hawaiian and JAL application demonstrated the effectivity created by the surge of customers, which include increased capacity, enhanced customer choice, and lower fares.
In an interview with Pacific Business News, Michael Chock, Senior Director of Alliances and Airline Partnerships at Hawaiian Airlines said that the venture will help them compete with United Airlines and All Nippon Airways' venture in Hawaii and Japan.
According to the estimates of the two airlines, the joint venture will generate 1,855 to 4,049 U.S. jobs, bring an additional 162,000 to 350,000 passengers to the Hawaiian islands, and will contribute $184.5 million and $402.3 million to the country's economy annually.
In their application, Hawaiian stated that the airline has encountered obstacles in trying to penetrate the international market. The Department's grant of antitrust immunization will enable them to overcome these problems and lead to more choices for its customers.
Peter Ingram, President and CEO of Hawaiian Airlines said that Hawaiian has admired JAL's excellent service for a long time because it mirrors the same Hawaiian hospitality that they offer. He also added that the business deal will combine the top brands in the competitive Hawaii-Japan market, and provide more flights options for travelers.
Hawaiian Airlines and JAL hope to get a positive response from the government later this year. The two airlines are targeting to launch their partnership in the second quarter of 2019.
Hawaiian Airlines is the longest-serving and largest airline in Hawaii. It was also named as one of the safest airlines. It offers non-stop flights from one of the best vacation spots in the world to many of the country's major cities, as well as flights to New Zealand, American Samoa, Tahiti, Japan, South Korea, China, and Australia. It flies over 250 times daily.
Japan Airlines is the first international airline in the country considered home to the best ramen. The said airline serves more than 56 countries with its codeshare partners and has 288 aircraft.
Photo: Prayitno | Flickr
