Japan Airlines Co. and Japan Air System Co. will merge their computer reservation operations for domestic services in October 2001, the carriers said Wednesday.
In the first deal of its kind between major Japanese airlines, the carriers plan to set up a joint venture in April 2001 to operate the joint computer system, which will cover reservations and ticketing for domestic flights.
The arrangement is expected to save JAL and JAS about 1 billion yen each in operating expenses annually, the carriers said. The move is aimed at cutting costs amid ongoing deregulation and declining air fares in the increasingly competitive domestic market.
The carriers are to contribute equal amounts for capital for the joint venture. JAS said it spends about 10 billion yen a year running its own computer reservation system.