TOKYO (Reuters) – American Airlines will team up with British Airways (BAY.L) and Qantas Airways (QAN.AX) to make a joint alliance proposal to recapitalize loss-making Japan Airlines (9205.T), two people with direct knowledge of the talks said.
The proposal, which will include an investment from American Airlines, is aimed at thwarting a rival offer from Delta Air Lines (DAL.N), which is also in talks to invest in Japan Airlines to help it grow in Asia.
Executives from American Airlines, British Airways (BA) and Qantas -- part of the Oneworld airline alliance with JAL -- met with executives at the Japanese airline this week and told them of their plans to put together a joint offer. It may or may not include an investment from BA and Qantas, the two people said.
The people spoke on condition of anonymity because the negotiations are not public.
A JAL spokeswoman declined to comment.
Delta is a member of the rival SkyTeam alliance and wooing JAL away from Oneworld would leave that grouping without a Japanese carrier.
JAL lost about $1 billion last quarter and has been scrambling to put together a revival plan this month to submit to the transport ministry, which is supervising its restructuring after the state backed a 100 billion yen loan.