No reason given for break
Japan Airlines (JAL) today (October 5) reportedly called off its current talks with Delta Air Lines and American Airlines.
The loss making Japanese national carrier was discussing a possible cash injection of $300m.
But Reuters reported from Tokyo that JAL had put the talks on hold without giving any reason.
A spokeswoman for JAL declined to verify the report or comment further, Reuters said.
The move by JAL come after it asked the new Democratic Party government in Japan for public money to tide it over its financial crisis.
The request was made by JAL's president and ceo Haruka Nishimatsu in talks late last month with the country's new transport secretary Seiji Maehara.
Mr Nishimatsu later confirmed the request to reporters after the meeting but declined to say how much the loss making airline had requested.
Although Japan's new government, it is not guaranteed to help the national airline.
It has instead said it wants a full review of the airline's position and also to see whether its re-structuring plan is realistic.
Under this plan JAL, which is reportedly hoping for government aid of about $1.2bn, has announced plans to cut 6,800 jobs and to axe some international routes.
It has also imposed a pay and pension freeze.
Besides its application for money to the government, the loss making airline had also been in talks with two US carriers.
JAL received a loan of $1.1bn earlier this year to help it with its deficit from the previous Japanese government.
Major lenders to the airline, including the Development Bank of Japan have also called for a major overhaul of JAL.
This could involve a break up of the carrier into profitable and non-profitable parts.
At the time of this demand, Reuters further quoted leading Japanese air analyst Yoshima Miyamoto of Okasan Securities was quoted by Reuters as saying: "Our image of JAL as Japan's national carrier no longer exists.
"It won't be able to stay alive as it is. It's got to sharply downsize operations or sell off businesses in bits and pieces to other companies."
As the talks began with Delta and American, two other carriers, BA and Qantas, both member of the oneworld alliance like American and JAL, sent executives to Japan to persuade the Japanese carrier of the "huge value" of staying with the alliance.
JAL lost $692m last year and announced a $1bn loss for the quarter to June this year.
It is heading for a deficit of $700m for the financial year ending next March.
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