Report: American Airlines in joint bid to help JAL

In this photo taken Aug. 7, 2009, Japan Airlines passenger planes park on the tarmac of Tokyo's Haneda Airport, Japan.

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Story Published: Sep 18, 2009 at 9:29 AM MDT

Story Updated: Sep 18, 2009 at 9:28 AM MDT

By Associated Press

TOKYO (AP) - American Airlines, Inc., British Airways Plc and Qantas Airways Ltd. have offered broad financial and business support to struggling alliance partner Japan Airlines Corp., including a possible investment of several hundred million dollars from American, a Japanese newspaper reported Friday.

The Nikkei business daily said the three airlines jointly offered to help the Japanese carrier obtain fresh capital, as well as assist in its restructuring by combining operation centers and providing consulting. The Nikkei didn't reveal its sources.

JAL spokesman Taro Nanba said his company declined to comment.

The news comes as JAL mulls a tie-up with Delta Air Lines Inc., the world's largest biggest airline operator. Last week a person briefed on talks between the two companies said Delta was considering a cash infusion of several hundred million dollars.

Delta is part of the SkyTeam alliance, which doesn't have a Japanese partner.

Japan Airlines is currently part of the rival OneWorld alliance, which also includes American, British Airways and Qantas.

The Japanese carrier is Asia's biggest airline group and is currently in the midst of a major restructuring. The company booked its biggest-ever quarterly net loss of $1 billion in the three months to June.

Also Friday, Standard & Poor's rating agency put the airline on a list for a possible cut in its credit rating. A cut could hurt its ability to obtain loans and raise the interest cost of its current borrowings.

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