Japan Airlines, Indonesia's Garuda to launch revenue-sharing venture

Japan Airlines (JAL) and flag carrier Garuda Indonesia will soon bolster their business tie-up by launching a revenue-sharing arrangement to maximize earnings on routes, Nikkei has learned. JAL and Garuda, which have been in a code-sharing agreement since 2018, will enter into a joint venture. The two sides will coordinate schedules and fares, providing passengers with more convenient connections. In the airline industry, joint venture arrangements entail revenue-sharing on certain routes, much like a single company. The carriers will also jointly plan and market travel packages. Southeast Asia is turning into a key market for JAL. Between January and May, passenger volume on Southeast Asian routes grew 5% on the year to 1.13m people. Southeast Asian traffic is the biggest market in JAL's network, surpassing the 630,000 passengers for North America, the company's cash cow. Demand from inbound tourists was particularly strong in Indonesia. About 263,800 passengers visited Japan between January and June, up 30.8% from the same period last year and exceeding the 218,400 travelers from the U.K. Indonesia has the world's fourth-largest population, with about 280m people. It is expected to rank sixth worldwide in passenger volume in 2025 with 160.4m, according to market data from Airbus. This would surpass Japan's seventh-ranked volume of 159.33m passengers. Bolstering international routes between Japan and Indonesia has become an essential strategy for sustainable growth for JAL, which faces a declining domestic market at home. The airline looks to attract more passengers taking off from Indonesia and expand international flights. Right now, there are no direct flights from Indonesia to North America, among other destinations.<br/>