(Adds details of airlines preferred, background)
NEW YORK, Sept 14 Air France-KLM (AIRF.PA) is
in talks with Japan Airlines 9205.T to form an alliance by
injecting a few hundred million dollars and taking a minority
stake in the struggling carrier, a source familiar with the
Air France-KLM, Delta Air Lines (DAL.N) and American
Airlines AMR.N are in separate "early stage" talks with Japan
Airlines, said the source, who declined to be identified
because the talks have not been made public.
The carriers are discussing an investment of $200 million
to $300 million each, in exchange for a minority stake and a
code-sharing relationship, but talks are fluid and the numbers
could change every day, the source said.
The Japanese government prefers Delta Air Lines or Air
France-KLM, which it views as financially healthier than
American Airlines, the source said.
But JAL prefers American Airlines, with which it has an
existing partnership through the Oneworld alliance, the source
said. JAL and American have been code-sharing partners for a
JAL, Asia's largest airline by revenue, lost about $1
billion last quarter and is under growing pressure to raise
money and slash costs after securing a 100 billion yen ($1.1
billion) government-backed credit line earlier this year.
Japan's transport ministry regulates JAL and could play a
key role in which airline is chosen as JAL's partner.
(Reporting by Jui Chakravorty; Editing by Richard Chang)