Japan Airl Lines Decides On Capital Tie-Up With Delta - Report

TOKYO -(Dow Jones)- Japan Airlines Corp. (9205.TO) and the state-backed Enterprise Turnaround Initiative Corporation of Japan Monday decided to pick Delta Air Lines Inc. (DAL) as a capital alliance partner for the struggling airline, the Yomiuri Shimbun reported in its Monday evening edition.

Without citing where it obtained the information, the paper said the airline will join the SkyTeam Alliance and is now working to terminate tie-up negotiations with AMR Corp.'s (AMR) American Airlines.

A tie-up with Delta will likely help JAL in its revival efforts, the paper said. While Delta's market share of trans-Pacific routes linking Japan and North America stands at 32%, that of American Airlines amounts to 8%. A tie-up with Delta will enable JAL, whose market share in these routes stands at 22%, to slash its own services and boost code sharing services with Delta, the paper added.