Japanese railroad and real estate conglomerate Tokyu Group is reportedly looking to sell at least some of its shares in troubled Japan Airlines (JAL).

Tokyu owns 2.94% of JAL and is taking steps to sell some shares, according to a report by Japan's Kyodo news agency, citing an unnamed executive at Tokyu and other well-placed sources. Holding a stake in JAL "no longer offers synergies", the Tokyu executive reportedly added.

Tokyu was the largest shareholder in Japan Air System, and received its JAL shares when the two carriers merged in 2002.

The Kyodo report says Tokyu may be exiting JAL because it no longer wants to inject money into the business, and is afraid that its stake will be diluted after any bail-out of the carrier.

JAL has been losing money and has applied to a government-backed organisation, the Enterprise Turnaround Initiative Corporation of Japan, for a financial bail out.

Japan's transport minister Seiji Maehara has also refused to rule out the possibility that JAL may go into bankruptcy.

Source: Air Transport Intelligence news