Japan Airlines is entering into a revenue-sharing venture with Garuda Indonesia. It comes as the company looks to strengthen its business in Asia.
The two carriers are already in a code-sharing agreement. The new arrangement will strengthen that relationship and see the airlines set flight schedules and manage revenues as if they were a single company. It is expected to take effect next April.
This will be the first time JAL enters into a business relationship of this nature with a carrier that belongs to a different alliance.
Garuda is the biggest airline in Indonesia. JAL is hoping the agreement will help it gain a stronger foothold in the world’s fourth most populous country.
The carriers are also expected to cooperate on ticket sales and the planning of tour products.
All Nippon Airways is in the process of formalizing a similar arrangement with Singapore Airlines. Japan’s major carriers are looking to strengthen their international flight business amid increasingly difficult conditions in the domestic market.