American ups JAL ante to keep Delta at bay

American Airlines Inc. on Thursday upped the ante in a fierce scramble over struggling Japan Airlines Corp., warning of "enormous risks" if JAL switches to the rival SkyTeam alliance.

A day after Delta Air Lines Inc. unveiled a lucrative financial package for JAL, American Airlines, a unit of AMR Corp., struck back as it is readying what sources say could be an even sweeter proposal totaling around ¥130 billion with TPG Inc., a major U.S. investment firm.

Speaking to reporters in Tokyo, an American Airlines executive urged cash-strapped JAL to remain in the current oneworld grouping, saying the alliance is providing $500 million in annual revenue to JAL and will add $100 million more if the two companies can obtain antitrust immunity following the conclusion of open skies talks between Japan and the U.S.