Delta air keen to buy Japan airlines

Struggling Japan Airlines (JAL) has been offered a $1 bn (£600 m) financial lifeline from the Sky Team grouping of airlines, led by Delta Air Lines. Delta said the funds were being offered to JAL if it switched from its current membership of the One World Alliance, which includes American Airlines. The news comes as JAL is seeking a financial bail- out from the Japanese government, its fourth since 2001. Delta is said to be keen to be able to expand its routes to Japan. Forming a closer alliance with JAL would enable it to do this ahead of the planned liberalisation of air routes between the US and Japan. The Sky Team's offer to JAL includes a proposal to buy $500 m in JAL shares, $300 m of guarantees to cover any short-term loss in sales caused by it leaving the One World alliance, $200 m in asset- backed financing, and $20 m to cover JAL's costs for switching alliances. JAL has declined to comment on the offer. Last week, JAL reported a net loss of 32.3 bn yen ( $357 m; £214 m) for the July to September period, compared with a 40.1 bn yen profit a year earlier. JAL is struggling with $15 bn of debts and a big pension deficit as well as falling passenger numbers.