The Secrets of JAL-Delta deal rumour

Various media reports recently surfaced rumouring that Delta Airlines, the world’s biggest air carrier, is to acquire a stake in Japan Airlines, Asia’s biggest air carrier by revenue.
The incident was first reported by Reuters, quoting a news report by NHK, a Japanese national broadcaster.
However, a JAL spokeswoman stated that she cannot neither verify nor comment further on the incident.
Today, it was reported that Air France-KLM group is to join with Delta in pursuing a stake of JAL.
However, the currently planned restructuring plan of JAL includes a banking consortium ( of 4 banks ) to fund up to ¥100b while the government is expected to provide assistance and advisory.
Japanese media also reported that the Ministry of Land and Infrastructure is supporting the Delta talks, but the bank consortium is opposing Delta’s deal.

Analysis:
The current investment law in Japan only allows foreign parties to purchase a maximum of 1/3 of a Japanese carrier. At the moment, foreign investment in JAL is around 5%.
JAL is currently a oneWorld alliance member, while both Delta and AirFrance-KLM are SkyTeam alliance members.
It should be noted that both SkyTeam and oneWorld are currently in a weak position.
SkyTeam currently has only one member from the Far East, which is Korean Air. OneWorld currently has two members in the Far East, which are JAL and Cathay Pacific.
JAL however has long had strong partnerships with SkyTeam carriers. It codeshares with Korean Air on all flights between Japan and Korea and JAL’s codeshare partnership with Air France dates back to 1960s.
It is also possible that this deal has an influence in politics as the Japanese government control changed hands recently. However none of the parties seem to be confirming anything at the moment and it will be interesting to watch the outcome of this deal.
Stay tuned to AIR for more updates.