A decision is expected this year, although both sides say the proposal has yet to be finalised. JAL says its investigations have been wider than a tie-up with Qantas subsidiary Jetstar.
The talks were put under the spotlight yesterday after the Japanese business paper Nikkei said the venture would be capitalised at between Y=10 billion ($116 million) and Y=20bn and would start next year.
JAL and Jetstar would each hold a 30 per cent stake.
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