JAL Launches Direct Billing

<B> JAL Launches Direct Billing</B>

By Jay Campbell

As it continued to tighten its ties with the Oneworld alliance, Japan Airlines this month introduced a new reservations system for Japanese companies that includes a pioneering direct bill system.

Called JAL Online, the free software enables companies or their travel agents to make bookings for corporate travel on domestic JAL, JAL Express and Japan Transocean Air flights over the Internet from their personal computers.

Thirty Japanese firms and government entities already are using the new system, for which all Japanese companies are eligible, airline officials said.

"It is cashless," said JAL spokesperson Irene Jackson. "The company will be billed monthly and will settle the account by check or bank transfer."

Airline officials said corporate travelers must use either a JAL Mileage Bank membership card or a JAL Card to make their reservations. JAL then tallies the customer's balance and bills the company for which he works directly.

"Through JAL Online, customers can create an original, in-house record of travel by frequency, personnel and expense," Jackson said. "At the airport, travelers go directly to a JAL automatic checkin machine and insert their JAL Card or JMB card to obtain their boarding pass."

Travelers can select their seats at the time they make their reservation and continue to earn miles on their JAL or JMB cards. JAL officials said the airline likely will enlist the help of Japanese travel agents in distributing the product.

The airline developed the software, which is provided to corporate and government customers on CD-ROM, with the help of subsidiary JAL Information Technology and IBM. The airline is applying for a patent on the system.

JAL officials said business travelers make up about half of its 20 million annual domestic passengers. "We expect one-tenth of our business travelers to use this system," said Jackson. "We anticipate that JAL Online could produce about 10 percent of our domestic passenger revenue, or about 20 billion yen per year."

Meanwhile, JAL is shoring up its ties with American Airlines and British Airways as part of the Oneworld alliance. American and JAL have applied to the U.S. Department of Transportation for rights to begin the first phase of a four-phase plan for expanding their reciprocal codeshare this year. If they do get approval, the first phase, which will cover 15 international and domestic routes, will begin on May 10.

British Airways on March 31 will drop JAL's main competitor, All Nippon Airways, as a partner in its frequent flyer program and replace it with JAL. Beginning April 1, the two airlines will offer frequent flyers the opportunity to earn miles on each other's international flights.

With government approval, the carriers will begin codesharing this summer.