Delta Air Lines Inc. (DAL) is in talks to buy a stake in Japan Airlines Corp. (9205.TO) in a move that will provide the ailing Japanese carrier with much-needed funds and give the U.S. airline, the world's biggest by revenue, a partner in Japan to build on its established presence in the country, according to a person familiar with the situation.

Speaking on condition of anonymity, the person said the talks between the companies are at a preliminary stage.

Any deal would help boost Delta's presence in the Asia-Pacific region and fill a gap in the global SkyTeam alliance headed by the U.S. airline. JAL is currently a member of rival Oneworld grouping headed by American Airlines and British Airways.

A Delta spokeswoman declined comment on reports of a tie-up with JAL, first reported by Japanese media. A Oneworld spokesman also declined comment, but said JAL was "an important and valued partner" in the Asia-Pacific region.

In a move that comes as U.S. and Japanese negotiators seek to hammer out an "open skies" deal that would liberalize air travel between the countries, Japanese media reported Delta will buy a stake worth several tens of billions of yen in the Japanese airline, making it JAL's biggest shareholder. The Kyodo news agency reported Delta's stake will come in the form of a new share issue reserved for the U.S. carrier.

JAL, which like many carriers has been hard hit by a slowdown in air travel triggered by the global economic downturn, had a market capitalization of Y445 billion according to its closing share price in Tokyo Friday, before the reports were made public. According to JAL's website, its largest shareholder is currently Japan Trustee Services T4G, with holding of 4.99%.

A spokesman at JAL said nothing has been decided with regard to the contents of local media reports on Delta's interest.

The move comes as JAL, Japan's biggest carrier by revenue, is seeking to put together a credible road map for a turnaround in profitability, a prerequisite for government-mandated aid. In line with that, JAL is working on a mid-term business plan under which it aims to scrap underperforming domestic and international routes to adjust to the slowdown in travel demand.

But earlier this week, JAL said it's not considering asking the government-run Development Bank of Japan to boost its capital.

In early reactions, local observers said the deal was welcome for JAL, but that its scale may not be sufficient to drag JAL out of its current problems.

Speaking on condition of anonymity, one Tokyo-based analyst said, "Delta and JAL could form a code-sharing alliance...(but) an investment of only Y10 billion or so would be just a drop in a bucket for JAL."

For this fiscal year ending March, JAL expects to lose Y63 billion on a net basis in the fiscal year as it soaks up restructuring costs. JAL booked a net loss of Y63.2 billion last business year.

Reflecting the global weakness in the air travel business, airlines worldwide may post losses totaling $9 billion in 2009 because of reduced demand and poor yields, squeezed by the global economic slump and spread of swine influenza, said the International Air Transport Association earlier this year. Asia-Pacific airlines are likely to be the worst performers this year with expected losses totaling $3.3 billion.

-By Doug Cameron and Hiroyuki Kachi, Dow Jones Newswires; 813-6895-7550; hiroyuki.kachi@dowjones.com

(Yuzo Yamaguchi in Tokyo contributed to this article.)