The head of American Airlines said Wednesday it may increase a proposed capital investment in Japan Airlines Corp. (9205.TO) and draw on financial support from other members of their Oneworld alliance.

Gerard Arpey, chairman and chief executive of parent AMR Corp (AMR), also offered to make JAL its "exclusive partner" in the region as the carrier intensified efforts to fend off a rival offer from Delta Air Lines Inc. (DAL).

"There could be more vigorous investment made depending on the circumstances," said Arpey at a press conference following a meeting in Tokyo with Japan's transport minister, Seiji Maehara.

AMR said earlier this month that it could inject $1.1 billion into JAL with its partner TPG Inc., the private equity group, and support from other members of Oneworld, which includes British Airways PLC (BAY.LN, BAIRY), Qantas Airways Ltd. (QAN.AU) and Cathay Pacific (CPCAY, 0293.HK).

The pledged support had previously been in the form of logistical and management help for JAL, but Arpey hinted its partners could also provide capital.

"In terms of investment, it's fair to say that they are open-minded, but a lot more understanding would have to be done in terms of how the overall restructuring will come together," he said.

The pace of talks between JAL and its suitors is expected to intensify after the U.S. and Japan last week agreed an outline open-skies aviation treaty, paving the way for JAL to seek antitrust immunity with its eventual partner.

Delta and its partners in the rival SkyTeam alliance have also said they may revise their initial proposal to inject $500 million into JAL and provide a $200 million loan and a $300 million revenue guarantee. Delta hasn't said whether other SkyTeam members would inject funds into JAL.

Richard Anderson, Delta's CEO, met with Maehara last week to explain his company's proposal in more detail.

The Japanese government is also assessing financial support for the loss-making carrier, and expects the airline to have chosen a partner and applied for anti-trust immunity by mid-February.

Japan has also asked the U.S. to expedite applications from JAL and All Nippon Airways for immunity to cooperate with their alliance partners.

Arpey said American would "object loudly and stridently" if Delta - already the largest carrier on U.S.-Japan routes - was granted immunity.

He also took a swipe at his rival by suggesting potential conflicts within the SkyTeam alliance if JAL opts to defect from Oneworld.

Arpey suggested traffic could be drained from JAL's Tokyo base by nearby Seoul, the key hub for SkyTeam member Korean Airlines Inc.

"In fact, JAL is so central to our partnership that we have discussed with JAL a proposal that would guarantee it exclusivity as our sole partner in this region, assuring a strong JAL and Tokyo hub for the future."

However, Arpey and American did not define the region and how such an arrangement might affect the airline's relationship with Oneworld partner Cathay Pacific Airways and its Hong Kong hub.

Delta shrugged off the challenge, claiming it could provide more passenger feed and work with JAL "to optimize their combined trans-Pacific networks" in tandem with SkyTeam.

By Mariko Sanchanta and Doug Cameron, Dow Jones Newswires; +81-3-6269-2827; mariko.sanchanta@dowjones.com

(Yoshio Takahashi contributed to this article.)
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