Shares in Japan Airlines surged 31 percent Monday after the Japanese government came up with additional financing for the troubled carrier.
Separately, Japan Airlines and alliance partner American Airlines denied local media reports that said JAL had chosen Delta as its new partner.
Japanese transport minister Seiji Maehara told reporters Sunday the state-owned Development Bank of Japan will double its credit line for Japan Airlines Corp. to 200 billion yen ($2.2 billion).
That should be enough to keep the airline afloat while the government works out details of a bailout for the cash-strapped carrier, government officials said.
Japan Airlines has suffered amid the global slowdown, competition from rival All Nippon Airways and a spate of safety lapses that tarnished its image.
It is weighing cash offers from Delta Air Lines and American Airlines for partnerships in global airline alliances.
In Case You Missed It
Shares in the airline have been declining recently as speculation of imminent bankruptcy grew. They finished at a record low Dec. 30.
Japan Airlines shares closed Monday at 88 yen, up 21 yen.
Delta has been trying to lure Japan Airlines Corp. away from an alliance with American Airlines and into the SkyTeam alliance. An alliance with JAL is seen as a way to strengthen routes and business in Asia.
subscribers.