(RTTNews) - Delta Air Lines Inc (DAL: News ) and its SkyTeam alliance partners said it has made an offer of $1 billion in aid to the ailing Japan Airlines Corp. (JALSF.PK: News ,JALSY.PK: News ) that includes $500 million in new capital, in an effort to woo the struggling airline from rival oneworld.

Delta, a part of a global airline alliance that includes Air France-KLM and Korean Air, said it would also provide the loss-making carrier $300 million revenue guarantee and $200 million in asset-backed financing, as well as $20 million computer-integration and other switching costs.

Earlier this week, media reports suggested that American Airlines, a subsidiary of AMR Corp. (AMR: News ), is planning to join hands with private-equity firm TPG Inc. to pump in around $300 million into Japan Airlines, or JAL.

Edward Bastian, president, Delta told reporters in Tokyo, "We believe strongly enough in JAL and in its future to put our own capital at risk."

Shinagawa, Japan based JAL, already has ties with a number of SkyTeam members, including code-sharing agreements with Air France-KLM and Korean Air Co. JAL's links with oneworld partners also include extensive code sharing with American, notably through its Chicago hub. oneworld brings together some of the best and biggest names in the airline business - American Airlines, British Airways, Cathay Pacific, Finnair, Iberia, LAN, Qantas and, since 1 April, Japan Airlines, Malév Hungarian Airlines and Royal Jordanian, plus some 20 affiliates.

Under code-share agreements, airlines can sell each other's tickets under their own name, allowing them to increase sales without having to bear the cost of operating a plane on the route.
JAL, Asia's biggest carrier by sales, has been incurring losses in the past few years and badly needs investment and government support for survival . The airline on November 13 said it swung to a loss of 131.2 billion yen or $1.46 billion for the six months ended Sept. 30 as the global economic downturn and swine flu fears triggered a severe slump in demand. The company also refrained from issuing annual forecasts due to uncertain business outlook.

In June, JAL secured 100 billion yen in emergency funding from a group of existing creditors after the Japanese government agreed to guarantee new loans. The airline is also planning large job cuts and major route reductions. The job reductions would be carried out in phases and concluded by March 2015, reports said.

Japan Air Lines provides service to Asia, Europe, Australia, New Zealand and North and South America, and serves numerous airports in the United States, including Cincinnati, with direct and code-sharing flights.

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