Japan Airlines (JAL) is expected to file for bankruptcy despite a range of potential deals being considered to save the airline.
Both The Times and the Guardian have predicted it will file for bankruptcy as part of a state-backed restructure as it continues to struggle with debts of about £10 billion.
The restructure deal would see the airline receive a £2 billion capital investment from the Japanese Enterprise Turnaround Initiative Corporation in return for slimming down and installing new management.
In the meantime, Japanese officials have said JAL will reject offers of equity investment made by both American Airlines and Delta Air Lines, preferring to wait until the new management team is in place before negotiating any new tie-ups.
While both US airlines have made recent offers to the airline, it is thought that JAL will not be able to enter into any negotiations for some months.