American Airlines, TPG could team up for Japan Airlines investment

American Airlines and TPG could team up to purchase a stake in struggling Japan Airlines in an effort to shore up the Oneworld alliance of carriers.

An American Airlines spokesman confirmed that Thomas Horton, American’s chief financial officer, said in Tokyo on Nov. 11 that American, working with Fort Worth-based TPG, could invest in Japan Airlines as part of that airline’s recovery plan. TPG officials would not comment. Sources familiar with the talks said the private equity firm would explore an investment in Japan Airlines if the Japanese government expressed an interest in TPG's involvement.

American Airlines is attempting to keep Japan Airlines in the Oneworld alliance to keep it from becoming part of Skyteam, an airline alliance that includes rival Delta Air Lines. Delta has also expressed an interest in buying shares in Japan Airlines. Japan’s government has been trying to structure a financial rescue package for Japan Airlines. The move could impact the Dallas-Fort Worth area as American Airlines has a much larger presence in the area than Atlanta-based Delta.

Airline alliances allow substantial cooperation between airlines, including the code-sharing agreements, cost reductions and the awarding of frequent flier miles between carriers.

TPG has a long history in airline investment, including investments in Continental Airlines Inc., Midwest Air Group Inc., America West and Ryanair Holdings Plc. TPG founder David Bonderman is currently chairman of Ryanair, a Dublin-based discount carrier. 

rfrancis@bizpress.net