All Nippon Airways Co. plans to start code-sharing with struggling Skymark Airlines Inc. from late March, a source said Tuesday.
ANA has agreed to the code-sharing for Skymark's domestic flights to and from Tokyo's Haneda airport at the latter's request.
Skymark is also in talks with ANA rival Japan Airlines Co. regarding code-sharing. JAL is ready to accept the three-party operation at Haneda, according to other sources.
Skymark earlier sought assistance from JAL but also called for cooperation from ANA after the government appeared reluctant to allow it to tie up only with JAL, which rehabilitated itself with the help of a massive government bailout following its bankruptcy in 2010.
Faced with intensifying competition with other low-cost carriers, Skymark is expecting a full-year loss for the second straight year in fiscal 2014 ending March.
It has also been negotiating with Airbus S.A.S. over a penalty charge it has to pay to the European aircraft maker for the cancellation of its order for six A380 superjumbos.