Delta Air Lines Inc. and its SkyTeam alliance partners offered as much as $1 billion in incentives to lure Japan Airlines Corp. away from the Oneworld group led by American Airlines.

SkyTeam airlines may invest $500 million in Japan Air, and Delta would supply $200 million in financing and $300 million to cover lost sales, Delta President Edward Bastian said Wednesday. American's bid may consist of $1 billion from private-equity firm TPG Inc. and $300 million from the airline.

Delta's proposal escalated the jockeying with AMR Corp.'s American for a stake in money-losing Japan Air, also known as JAL. The U.S. carriers, the world's biggest, are vying for access to JAL's routes in its home country and in China, Asia's largest air-travel market.

"If Delta wins this contest, they have got a huge position of strength and would be in a position to dominate a fair piece of the trans-Pacific market," said George Hamlin, managing director at New York-based consultant ACA Associates. "There is a lot at stake there for American."

Bastian unveiled Delta's offer in Tokyo, where JAL is based, and said the carrier may boost annual sales by $400 million by joining SkyTeam because Delta flies three times as many passengers to Japan as American. Delta wouldn't cede any landing slots at Tokyo's Narita Airport, Bastian said. The airline is the largest overseas carrier at the facility.

Delta, whose westernmost hub is at Salt Lake City International

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Airport, has promised JAL to "bear the whole cost of the transition no matter how much it is," Bastian said. He didn't give details on how a SkyTeam investment would be funded.

American and TPG, both based in Fort Worth, Texas, said in a statement their offer would provide "significant value" and be part of a "comprehensive recovery plan" for the Japanese carrier after three annual losses in the past four years.

JAL now gets as much as $500 million in annual revenue from its Oneworld partners, and approval from U.S. regulators to coordinate pricing on trans-Pacific routes potentially may add $100 million a year more, American has said.

Air France-KLM Group, a SkyTeam member, is prepared to invest in JAL to woo the airline away from Oneworld, Air France CEO Pierre-Henri Gourgeon said. He declined to discuss the potential amount of assistance.

"Delta has the bigger network, which may appeal to JAL, but American may offer more long-term potential because of its more global reach," said Ryota Himeno, an analyst at Mitsubishi UFJ Securities Co. in Tokyo. He rates JAL as "market perform."

AMR fell 22 cents, or 3.7 percent, to $5.77 in trading, while Delta dropped 14 cents, or 1.8 percent, to $7.76.