Struggling Skymark Airlines Inc. has started talks with All Nippon Airways Co. over code-sharing after beginning similar discussions with rival Japan Airlines Co., sources close to the matter said Tuesday.
It is talking to both because the government is averse to it tying up only with JAL, which got a massive bailout following bankruptcy in 2010.
The transport ministry has said it will examine the Skymark-JAL tie-up plan carefully.
ANA said it is watching JAL's business strategy closely, adding that an airline formerly backed by public money should not pursue growth plans that could undermine a level playing field for other carriers.
Skymark will look to start code-sharing operations with ANA from March or April on some of its domestic flights to and from Tokyo's Haneda airport. It made a similar suggestion to JAL, the sources said.
Shinichi Nishikubo, president of the embattled airline, met with a senior executive of ANA Holdings Inc., the parent of All Nippon Airways, on Monday to propose such joint flight operations, the sources said.
The meeting came after Skymark said last week it was considering seeking assistance from ANA.
Faced with intensifying competition from low-cost carriers, the airline expects this fiscal year to post a loss for the second straight year.
It has also been in talks with Airbus SAS over a penalty it must pay the European aircraft maker for canceling its order for six A380 superjumbos.