American Air Said to Consider Buying Japan Air Stake

American Airlines, the world’s second-largest carrier, may buy equity in Japan Airlines Corp. to prop up an ally that forecasts its fourth loss in five years, two people familiar with the plan said. Japan Air rose the most in six months.

American also plans to expand code-sharing with Japan Air, its partner in the Oneworld marketing alliance, the people said yesterday, asking not to be identified because the discussions aren’t public. Japan Air is talking with other carriers to strengthen its business, spokeswoman Sze Hunn Yap said in Tokyo, declining to comment on discussions or possible investments.

Japan Air, which has received three government bailouts since 2001, the most recent in June, is also in talks on possible stake sales to Delta Air Lines Inc. and Air France-KLM, people familiar with those negotiations have said. The carrier, known as JAL, may be seeking 250 billion yen ($2.8 billion) to rebuild operations, the Nikkei newspaper reported yesterday without saying where it got the information.

“I don’t think the Japanese government cares who gives JAL the money,” said Yasuhiro Matsumoto, an analyst in Tokyo at Shinsei Securities Co. “JAL would probably rather get money from American since they’re in the same group.”

Shares Surge

Japan Air rose as much as 9.2 percent to 178 yen and traded at 175 yen as of 9:13 a.m. in Tokyo. It has declined 17 percent this year compared with a 16 percent gain in the Nikkei 225 Stock Average.

American declined to comment on reports of an investment in Japan Airlines, Charley Wilson, a spokesman at the airline’s Ft. Worth, Texas, offices said yesterday. Tokyo-based Japan Air said in a statement today that it wasn’t the source of reports on raising funds and that nothing has been decided on financing.

Code-sharing with Asia’s largest carrier would give American or Delta access to more cities in Japan and the ability to sell seats on Japan Air flights directly to customers. Alliances such as Oneworld and SkyTeam, which includes Delta and Air France-KLM, let airlines expand their networks by pulling in more passengers and sharing revenue at lower costs.