Delta Air Lines Inc. has been working out a network expansion idea in collaboration with Japan Airlines Corporation, which posted a $1 billion loss in the second quarter and is looking for cash from a partner.

Delta Air Lines has become the world's largest air carrier when it completed a merger with Northwest Airlines last year. Media reports say that Delta has looking for options to acquire stakes in Japan Airlines for making it a member of Delta's SkyTeam alliance.

Kyodo News reported, "Cash-strapped JAL is likely to raise tens of billions of yen by selling shares to Delta, which would then become JAL's top shareholder, to bolster its weak financial standing …... The company will also improve the efficiency of its flight operations by code-sharing some international routes with Delta and strengthening its business base." However, Delta and Japan Airlines declined to comment over the issue.

Delta officials have been trying to develop Metro Airport for directly connecting U. S. and Asia. The proposed deal, if materializes, will increase its trans-Pacific dominance over rival United. Besides, Delta could also use Japan Airlines' strong hub at Haneda Airport, near central Tokyo.