Nov. 9 (Bloomberg) -- American Airlines would be in a “very bad” position should Japan Airlines leave the Oneworld alliance, the U.S. carrier’s chief executive officer said.

American, a unit of AMR Corp., is trying to prevent Delta Air Lines Inc. from luring the Japanese carrier into its own SkyTeam alliance. American has said its talks include “possible capital or financing arrangements” for Japan Airlines, which is headed for its fourth loss in five years.

A change in alliances “would be a very bad idea for Japan Airlines,” American CEO Gerard Arpey said at an Oct. 29 meeting of executives of his Fort Worth, Texas-based company. “That would certainly be very bad for us, but we don’t control their decision-making process.”

Arpey’s comments underscore the risks to American should Japan Airlines leave Oneworld. Both U.S. carriers want access to Japan Airlines’ network in its home country, the world’s second- largest economy, and China, Asia’s biggest air-traffic market. Arpey is slated to meet today with other Oneworld leaders in Mexico City as Grupo Mexicana de Aviacion SA joins the alliance.

Japan Airlines, Asia’s biggest carrier by sales, is seeking government support and new investment to avoid collapse. The airline has proposed cutting 6,800 jobs and the biggest reduction of routes in its history, and has asked employees to give up winter bonuses and possibly face pension reductions.

Deeper Ties

American initially approached the Tokyo-based airline in June about deepening their alliance partnership into one that would seek antitrust immunity as soon as the U.S. and Japan agree on an aviation treaty. Such immunity would let the two carriers collaborate on pricing and flight schedules.

Delta, which gained footholds in Japan and Asia when it acquired Northwest Airlines Corp. last year, is seeking an Asian partner for its alliance.

The alliance competition over Japan Airlines is a “very big threat and opportunity for us,” Arpey said.

Oneworld is led by American and British Airways Plc. Other members include Cathay Pacific Airways, Finnair Oyj, Spain’s Iberia Lineas Aereas de Espana SA, Chile’s Lan Airlines SA, Hungary’s Malev Zrt., Qantas Airways Ltd. and Royal Jordanian Airlines.

To contact the reporter on this story: Mary Schlangenstein in Dallas at maryc.s@bloomberg.net

Last Updated: November 9, 2009 11:11 EST