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American proposes JAL as exclusive Asian partner

American Airlines is telling partner Japan Airlines it will not compete for connecting traffic to Asia if the Japanese carrier does not defect to a rival alliance led by Delta Air Lines.

American's chief executive, Gerard Arpey, said Wednesday after a meeting with Japanese officials in Tokyo the airline has proposed making JAL its exclusive partner in Asia.

Arpay said the offer would involve American feeding traffic between the U.S. and Japan but not elsewhere in Asia.

He said American would not siphon JAL's Asian customers. He said Delta, which has a Tokyo hub, might.

Delta and its SkyTeam partners have offered $1 billion to lure JAL from American. American has countered with a $1.1 billion offer to struggling JAL to remain its partner.

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